Personal finance expert Martin Lewis has urged individuals to register for a Lasting Power of Attorney (LPA), a document he describes as "more important than a will." The LPA costs £92 to register in England and Wales, and Lewis highlighted a special event today (April 22) that may benefit those who act promptly.
Why an LPA Matters More Than a Will
Speaking on This Morning with hosts Ben Shephard and Cat Deeley, Lewis warned that failing to set up an LPA could leave families in a "nightmare" situation. He explained that while a will dictates what happens to assets after death, an LPA allows trusted individuals to manage finances, property, and health decisions if someone loses mental capacity due to conditions like Alzheimer's, stroke, or dementia.
Lewis stated: "Most people worry about a will, and rightly so. But I argue that a lasting power of attorney is more important. A will deals with death; an LPA deals with life when you lose capacity." He noted that many people assume a relative can simply take over their affairs, but that is not true without legal authorization.
The Consequences of Delay
If no LPA is in place, relatives must apply to the Court of Protection, a process Lewis described as "costly, difficult, expensive, and incredibly stressful." He emphasized that setting up an LPA early avoids this burden. Lewis revealed he has had his own LPA since his 30s, despite having no foreseeable health issues.
Types of Lasting Power of Attorney
There are two types of LPA:
- Health and Welfare LPA: Allows an attorney to make decisions about daily routine, medical care, moving into a care home, and life-sustaining treatment.
- Property and Financial Affairs LPA: Covers managing bank accounts, paying bills, collecting benefits or pensions, and selling property.
Lewis advised that while using a solicitor is best, individuals can set up an LPA themselves in England and Wales. The registration fee is £92 per LPA, so both types would cost £184.
For more information, visit the government website on Power of Attorney.
