Top News

Martin Lewis, the founder of Money Saving Expert, has urged listeners to spend £82 on a document he deems 'more important than a will. '

The personal finance guru revealed that he himself has had one in place since his 30s, emphasising 'it's a really important thing to think about.'

During his BBC podcast this week, Mr Lewis stressed the importance of securing Power of Attorney. A lasting power of attorney (LPA) is a legal document that allows you, the 'donor', to appoint one or more individuals, referred to as 'attorneys', to assist you in making decisions or to make decisions on your behalf.

The purpose of this document is to provide families with more control over what happens to an individual if they suffer an accident or illness and are unable to make their own decisions - they might 'lack mental capacity'. At present, it costs £82 - but from November 17, the price will increase to £92, the government has warned.

Mr Lewis stated: "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."

"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.

---