Reader question: We are a British couple in France. We are both still in good health, but I worry about what might happen regarding our financial affairs if one of us developed dementia in later years. Do you have advice on how you can be prepare in advance if that should happen?
Many couples assume that if one partner loses mental capacity, the other will automatically be able to deal with banks, investments and financial matters on their behalf.
In reality, it is often not that straightforward.
For foreign residents of France or families with assets spread across more than one country, the practical and legal difficulties can sometimes come as an unpleasant surprise.
Loss of mental capacity may arise gradually through illnesses such as dementia, or suddenly following an accident or stroke. Families are often dealing with emotional stress at precisely the moment when important financial decisions must also be made.
One of the most common misunderstandings is the belief that marriage automatically gives one spouse authority to manage the other’s financial affairs.
In practice, banks, investment companies and administrative organisations will usually require formal legal authority before accepting instructions once questions of mental capacity arise.
This can create immediate problems. For example, where savings, investments, or property are held in one spouse’s sole name, the healthy spouse may discover they cannot access accounts, alter investments, sell assets, or even obtain information without the appropriate authority.
Even joint accounts may not always operate as smoothly as couples expect once vulnerability or incapacity becomes apparent.
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Cross-border planning
Cross-border families can face additional complications.
Many British expatriates in France have UK bank accounts, pensions, investments, or property alongside French assets. The systems governing mental incapacity differ significantly between the UK and France, and financial institutions do not always respond consistently to documents issued in another country.
In the UK, many people are familiar with Lasting Power of Attorney (LPA), which allows a trusted person to manage financial affairs if mental capacity is lost.
France has its own systems, including the mandat de protection future, as well as court-supervised protective measures such as curatelle and tutelle.
However, families are often surprised to discover that documents prepared in one country may not always be accepted immediately elsewhere without additional procedures, translations or legal review.
Financial institutions tend to become particularly cautious once concerns regarding mental capacity emerge. Staff are trained to identify vulnerability and may restrict certain actions until they are satisfied that proper authority exists.
While this is understandable from a safeguarding perspective, it can leave families frustrated if no preparations have been made in advance.
Long-term issues
Difficulties can become even more significant where long-term care needs arise.
The healthy spouse may suddenly have to reorganise finances, access investments, sell property or arrange funding for care, while also trying to navigate unfamiliar administrative procedures across multiple jurisdictions.
Where no appropriate legal arrangements exist, court involvement may eventually become necessary.
In France, certain protective arrangements involve court supervision, with ongoing reporting obligations and legal oversight to protect vulnerable individuals.
From a practical perspective, preparation is often far easier than trying to resolve problems later under pressure.
This does not necessarily mean complicated planning. In many cases, it simply means ensuring that financial and legal arrangements are properly reviewed before difficulties arise.
Questions families may wish to consider include:
• whether appropriate powers of attorney or protective arrangements exist,
• whether they are suitable for international circumstances,
• how assets and accounts are structured,
• whether both spouses can access essential information,
• and whether financial arrangements remain manageable if one partner becomes unable to act independently.
Another issue frequently overlooked is digital access.
Many couples now rely heavily on online banking, investment platforms and electronic administration. If passwords, security procedures or account access details are known only to one spouse, even relatively simple day-to-day financial management can quickly become difficult.
While discussions surrounding mental incapacity are understandably uncomfortable, avoiding the subject altogether can create far greater stress later for both spouses and their wider family.
The good news is that many potential difficulties can be significantly reduced through early preparation and a straightforward review of existing arrangements.
In many cases, the objective is not complex legal restructuring, but simply ensuring families understand how their finances are organised, where potential difficulties may arise, and whether appropriate legal and financial safeguards are already in place.
Depending on individual circumstances, families may benefit from discussions with appropriately qualified professionals such as a notaire, solicitor or avocat, alongside a wider financial planning review where international assets, investments or tax exposure exist.
A conseil en gestion de patrimoine (French-qualified financial planner) can help families review the broader financial implications and practical organisation of their affairs, particularly in cross-border situations.
Ultimately, the most important step is often simply starting the conversation before a crisis occurs.
Robert Kent is a financial adviser with Kentingtons.com
