Finance gurul said the document is arguably more important than a will and urged people to consider getting one in place
Money Saving Expert founder Martin Lewis has encouraged people to pay £92 for a document he describes as ‘more important than a will’. The personal finance guru disclosed he has maintained one since his 30s, stating ‘it’s a really important thing to think about’.
Speaking on X yesterday, he said securing Power of Attorney was essential. A lasting power of attorney (LPA) is a legal document enabling you, the ‘donor’, to appoint one or more individuals, known as ‘attorneys’, to assist you with decisions or to make decisions on your behalf.
He said: “Power of Attorney is arguably more important than a Will (I’ll discuss both on @ItvMLshow tomorrow). If you lose your faculties, it lets someone smoothly take over financial and health decisions. Without, even money to pay for your care may be inaccessible.”
It exists to provide families with greater authority over what happens to an individual if they suffer an accident or illness and cannot make their own decisions – they might ‘lack mental capacity’.
On X, one follower commented: “Just to point out, not having a PoA doesn’t render money inaccessible as there’s also a mechanism called a Court of Protection Deputy where the Court can grant similar powers after someone loses their faculties.”
Mr Lewis responded: “Yes but that is an absolute nightmare for many and what we’re trying to help people avoid :)” Another viewer concurred: “Completely right. I’m a retired solicitor who used to deal occasionally with the Court of Protection and they’re a nightmare. Extremely expensive and very very slow- it’s not an alternative, it’s a catastrophe.”
Previously, 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.
