Martin Lewis, founder of Money Saving Expert, has urged people to spend £92 on a lasting power of attorney (LPA), describing it as "more important than a will".
Speaking on his BBC podcast, the personal finance expert stressed that an LPA is essential for ensuring someone can make decisions on your behalf if you lose mental capacity. The legal document allows you to appoint "attorneys" to assist with or make decisions about your finances and welfare.
Why an LPA is critical
Mr Lewis warned that without an LPA, relatives cannot access your bank accounts, insurance, or other financial matters if you become incapacitated. He said: "The money you need to pay for your care is locked away and inaccessible."
The expert, who has had an LPA since his 30s, emphasised that losing mental capacity doesn't just affect the elderly. He cited the example of viewer Alan, whose 33-year-old wife suffered a severe brain injury in a car accident without an LPA in place.
Alan said: "Whilst life was falling apart and looking after our three kids, I had to take deputyship. This involved a court of protection hearing and cost thousands."
Costs and types of LPA
The registration cost is £92 in England and Wales, £96 in Scotland, and £180 in Northern Ireland. Solicitor fees range from £400 to £750 for complex cases.
There are two types of LPA available: health and welfare, and property and financial affairs.
