The money saving expert claims this is one of the most important documents people can have.
Money saving expert Martin Lewis is urging UK households to get £82 document.(Image: Kate Green/Getty Images)
Unfortunately, when it comes to planning for the future, at some point or another many of us will need to take the time to create a will. Giving many people peace of mind, this document allows you to sort out your money, property and possessions before you pass.
While this document is important to have at least drafted, money saving expert Martin Lewis has shared that there is another document that is “more important than a will” that many families across the UK do not currently have.
Martin is urging households to get a Power of Attorney document, which currently cost £82. He shared that it is something he has had in place since his 30s and implores that it is a “really important thing to think about” in the long run.
Now may also be the best time to get this document as the government has warned that the price will jump up to £92 on November 17, reports the Manchester Evening News.
Martin claims that the power of attorney document is ‘more important than a will’.(Image: Getty Images)
Speaking on his BBC podcast, Martin Lewis explained that a lasting power of attorney (LPA) is a legal document that lets you – the ‘donor’ – appoint one or more people to help you make decisions or make decisions on your behalf if you are unable. These appointed people are known as ‘attorneys’.
This document was created to give families more control over what happens to a loved one if they are involved in an accident or have taken ill and can no longer make their own decisions – otherwise known as ‘lacking mental capacity’.
Martin 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.
“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.”
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He added: “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.”
Martin then went on to urge people across the UK to consider buying the document to give themselves added peace of mind.
He said: “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.”
In concern to the lasting power of attorney, there are two different types which cover separate aspects of your life – health and welfare or property and financial affairs. For those unsure of what each LPA includes, we have detailed the differences below.
Health and welfare lasting power of attorney
This LPA gives your attorney the power to make decisions concerning your health and wellbeing, especially when you cannot verbalise your wants yourself. This includes:
your daily routine, for example washing, dressing, eatingmedical caremoving into a care homelife-sustaining treatmentProperty and financial affairs lasting power of attorney
On the other hand, this LPA gives the attorney the power to make decisions for you about money and property. This includes:
managing a bank or building society accountpaying billscollecting benefits or a pensionselling your home
More information on LPA’s can be found on the government website.
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