Martin Lewis, founder of Money Saving Expert, has recommended that the public invest £82 in a document he deems ‘more important than a will’. The personal finance guru revealed that he had kept one since his 30s, emphasising ‘it’s a really important thing to think about’.

On his BBC podcast this week, Mr Lewis underscored the importance of securing Power of Attorney. A lasting power of attorney (LPA) is a legal document that allows you, the ‘donor’, to appoint one or more individuals, referred to as ‘attorneys’, to assist you in making decisions or to make decisions on your behalf. In the past the financial expert gave the essential advice to 25-year-olds.

This document is designed to give families more control over what happens to someone if they have an accident or illness and are unable to make their own decisions or they might ‘lack mental capacity’. For money-saving tips, sign up to our Money newsletter here.

At present, it costs £82 – but from November 17, the fee will increase to £92, the government has warned.

Mr Lewis stated: “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.

“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.”

He continued: “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, which are the Health and welfare lasting power of attorney and the Property and financial affairs lasting power of attorney. Both cover different powers and decision-making abilities.

Health and welfare lasting power of attorney

Utilise this LPA to grant an attorney the authority to make decisions regarding matters such as:

your daily routine, for example washing, dressing, eating

life-sustaining treatment

Property and financial affairs lasting power of attorney

Employ this LPA to provide an attorney with the power to make decisions concerning money and property on your behalf, for example:

managing a bank or building society account

collecting benefits or a pension