Households in England are being advised to obtain a document costing £92 that is considered more important than a will. Martin Lewis, founder of Money Saving Expert, highlighted the significance of a Lasting Power of Attorney during an appearance on ITV’s This Morning.
Why a Power of Attorney Matters
Speaking to hosts Ben Shephard and Cat Deeley, Lewis emphasised the importance of this legal document. He explained that while a will dictates what happens to your assets after death, a Power of Attorney determines who can manage your finances and make health and welfare decisions if you lose mental capacity while still alive.
Lewis noted that many people underestimate the likelihood of losing capacity due to conditions such as Alzheimer’s, severe stroke, accidents, or dementia. He warned that without a Power of Attorney, loved ones cannot simply take over your affairs; they must apply to the Court of Protection, a process that is costly, difficult, and stressful.
The Alternative: Court of Protection
Without a Power of Attorney, the Court of Protection must appoint a deputy, which involves time-consuming legal procedures and significant expenses. Lewis stressed that this adds unnecessary burden to family members during already challenging times.
Setting Up a Power of Attorney
Lewis recommended putting a Power of Attorney in place well before it is needed. He shared that he has had one since his 30s, despite no foreseeable risk of losing capacity. The document allows someone to take over financial decisions and health and welfare matters if necessary.
The application costs £92 to register in England and Wales per Power of Attorney, covering both financial and health and welfare aspects. Lewis advised that while hiring a solicitor is the best option, individuals can also use online services or complete the process themselves.
Key Takeaway
Lewis urged viewers not to assume that family members can automatically access bank accounts or make decisions on their behalf. A Power of Attorney provides legal authority and peace of mind, ensuring that your affairs are handled according to your wishes.
