The current fee stands at £82 though this will rise to £92 from November 17, the government has cautioned
Money Saving Expert founder Martin Lewis has urged people to consider paying for a document he’s referred to as ‘more important than a will’. The personal finance guru revealed he himself has had one since his 30s, describing it as ‘a really important thing to think about’.
During the latest episode of The Martin Lewis Podcast on BBC Sounds, Mr Lewis emphasised that securing Power of Attorney was crucial. A lasting power of attorney (LPA) represents a legal document enabling you, the ‘donor’, to designate one or more individuals, termed ‘attorneys’, to assist with decisions or act on your behalf.
It provides families with greater authority over what occurs if someone suffers an accident or illness preventing them from making decisions independently – when they might ‘lack mental capacity’. The current fee stands at £82 – though this will rise to £92 from November 17, the government has cautioned.
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.”, reports the Manchester Evening News.
“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 known as either health and welfare or the second which is 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.
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