Martin Lewis issued a “really important” warning to everyone in the UK to protect their finances for the future.
The MoneySavingExpert founder discussed the importance of a Lasting Power of Attorney on his Martin Lewis Money Show and stressed that it is “more important than a will”.
In the latest episode of the ITV show, Martin warned that a power of attorney is not something that is restricted to the elderly and urged everyone to spend £82 now to set one up to protect their assets.
Read more: Martin Lewis urges everyone to make two checks for £48,000 state pension handout
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more people (attorneys) to help you make decisions, or to make decisions on your behalf.
It means that you have more control over what happens to you in the event you have an accident or suffer from illness and are unable to make your own decisions.
An LPA will allow you to give an attorney the power to make decisions about your money and property on your behalf in the event you can no longer do this yourself.
So that would mean they could manage your bank or building society, pay your bills, collect your benefits or pension on your behalf, or sell your home for you.
Martin explained: “Really important this. I think power of attorney is more important than a will. A will decides what happens to your assets if you die, power of attorney is what happens to your assets if you lose your faculties, you’re still alive and you may have your own care and family that you need to look after if you’re no longer capable of doing it yourself.
“So, power of attorney. This is where you nominate a friend or relative to take over your finances if you lose your faculties. Doing it does not mean you give up control now. It does not mean that.
“There are safeguards in place. You nominate other people to check whether it’s right that you’ve lost your faculties or not. And don’t think this is just for the elderly. Everybody in this room should be considering one.”
Martin warned people not to assume that their family will be able to access their funds, pay for their mortgage, or fund their care if needed, as this is “much harder” to do without a power of attorney to sort your finances.
He went on to urge people to set up a power of attorney now at a cost of £82 in England and Wales, £85 in Scotland, or £151 in Northern Ireland, as it can be a long process.
The government says it can take up to 20 weeks to register an LPA if there are no mistakes in the application, so it’s worth applying as soon as possible.
Martin added: “They’d need to apply via the Court of Protection or the equivalent in other countries, and I just get swamped with how long it takes, how expensive and how stressful it is.
“To get one you apply via gov.uk, it costs £82 in England and Wales, slightly more in Scotland (£85) and £151 in Northern Ireland. You can do it yourself if you’re good and you have simple circumstances. If you really want to make sure you do it right, and if you can afford it, I would suggest you do.
“Solicitors charge normally £200 to £500. You can get partial help, so you do it and they have legally qualified people who overlook it. From Which? Wills, which is £99, but from some websites you can get that a little bit cheaper.
“Look, power of attorneys aren’t perfect, they’re not quick, but they are better than having nothing at all. I am of course talking about the financial power of attorney. There’s one for health and welfare, where you make the health and welfare decisions too, but obviously that’s not my bag. But it’s still important to look at.”
To make an LPA, you can do so online via the government website .
Read More: World News | Entertainment News | Celeb News
Yorkshire
