Martin Lewis is urging everyone to get a £92 document that he calls "more important than a will." The Money Saving Expert has stressed the importance of the document, which he has had since his 30s.
Speaking on his BBC podcast, Mr Lewis advised Brits to make sure they have a lasting power of attorney (LPA). The legally binding document allows you to choose one or more trusted people to help you or to make decisions on your behalf. It gives you more control over what happens to you if you suffer an illness, injury or lose the capacity to make your own decisions.
Costs and eligibility
Anyone aged 18 or over can set up an LPA, with registration costing £92 in England and Wales, £96 in Scotland, and £180 in Northern Ireland.
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."
Why it matters
He continued: "If you lose mental capacity, don't assume relatives can access your bank, your insurance, and a whole host of other things. And that can literally mean the money you need to pay for your care is locked away and inaccessible."
"The money that is needed to pay for your mortgage is locked away and inaccessible. Someone else is going to have to find the cash in the meantime."
He previously said on ITV's The Martin Lewis Money Show Live: "I think it's more important than a will, because you're alive and your money could be locked away."
Types of LPA
There are two types of LPA: a Property and Financial Affairs LPA and a Health and Welfare LPA. The former gives your attorney the authority to manage your money and property, while the latter allows them to make choices about your healthcare and daily routine.
The GOV.UK website states: "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."
"This gives you more control over what happens to you if you have an accident or an illness and cannot make your own decisions (you ‘lack mental capacity’)."
It adds: "You must be 18 or over and have mental capacity (the ability to make your own decisions) when you make your LPA. You do not need to live in the UK or be a British citizen to make an LPA."
