The Money Saving Expert issued an urgent warning on his podcast saying that if people wait too long it could be ‘extremely stressful’
Money Saving Expert founder Martin Lewis has urged listeners to fork out £82 for a document he deems ‘more important than a will’. The personal finance guru revealed he’s had one sorted since his thirties, describing it as ‘a really important thing to think about’.
During this week’s BBC podcast, Mr Lewis stressed the crucial nature of securing a Power of Attorney.
A lasting power of attorney (LPA) is a legal document that lets you, the ‘donor’, appoint one or more people, known as ‘attorneys’, to help you make decisions or to make decisions on your behalf.
It’s designed to hand families greater authority over what unfolds if someone suffers an accident or illness and can no longer make their own choices – when they might ‘lack mental capacity’.
The current fee stands at £82 – though the government has flagged it’ll jump to £92 from November 17.
Mr Lewis explained: “Wills are really important, but in my view, a power of attorney is even more so, which is why it’s worrying that far fewer people have them. Best is to have both. But when you’re dead, you’re dead, it’s just a question of where your assets go.”
He continued: “But without a power of attorney, if you lose mental capacity, all your assets can be locked away with your loved ones unable to access them to pay for, say, your mortgage or even to pay for your care. What they then have to do is go through the nightmare of going to the court of protection that can take months or years is extremely stressful and costs a lot of money.
“So having a lasting power of attorney set up in advance where you’ve nominated trusted people to look after your finances if and only if you lose capacity so they can help you out, is crucial. Now you might just be thinking, yeah, that’s good for the elderly. No, I’m 53, I know, I look younger. But I’ve had one in place since my 30s. In my view, this is crucial peace of mind protection. If you haven’t got one, I know it’s a grown up thing to think about, but it’s also a really important thing to think about.”
There are 2 types of LPA:
- health and welfare
- property and financial affairs
Health and welfare lasting power of attorney
Use this LPA to give an attorney the power to make decisions about things like:
- your daily routine, for example washing, dressing, eating
- medical care
- moving into a care home
- life-sustaining treatment
Property and financial affairs lasting power of attorney
Use this LPA to give an attorney the power to make decisions about money and property for you, for example:
- managing a bank or building society account
- paying bills
- collecting benefits or a pension
- selling your home
For more information Power of Attourney visit the government website here.
To listen to the podcast click here.