Martin Lewis Urges Brits to Secure £92 Power of Attorney Document

Personal finance expert Martin Lewis has urged people to secure a legal document costing £92, which he describes as "more important than a will." During an appearance on This Morning with presenters Ben Shephard and Cat Deeley, he warned that failing to act could leave individuals facing a nightmare scenario.

What Is a Power of Attorney?

The legal document in question is the Power of Attorney, which allows a person to appoint trusted individuals to make decisions regarding property, financial affairs, or health and welfare on their behalf. Mr. Lewis stressed that delaying this could create enormous difficulties for relatives if someone's health declines, and said he had put his own in place in his 30s.

He explained: "So to simplify this, most people worry about their will and having a will and quite right a will is important. But I would argue that a lasting power of attorney is more important than a will. A will dictates what happens to your assets when you die. A power of attorney dictates who can look after your finances and your assets if you're alive but lose capacity."

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Why You Need It Early

Mr. Lewis added: "And this happens to many more people than they think. And lots of people say, 'Oh, it doesn't matter. We'll deal if in the event,' you know, whether it's Alzheimer's or a severe stroke or an accident or anything else or dementia that takes away your capacity, the idea that someone else can simply take over your finances and your health and welfare decisions is not true."

A power of attorney is a legal document that permits an individual (the donor) to grant one or more people (the attorney) the authority to make decisions on their behalf concerning their health and/or finances, according to consumer website Which?. The site further notes that a power of attorney can only be established while you still retain the ability to process information and make your own decisions - referred to as 'mental capacity' - making it advisable to arrange one sooner rather than later, explains the Express. Without a power of attorney in place, a friend or relative may have to apply to the courts for the right to make decisions on your behalf.

The Cost of Not Having One

Mr. Lewis cautioned: "You have to go to the court of protection. It's costly. It's difficult. It's expensive. It's incredibly stressful for the people that are doing it. And it's really difficult." He continued: "The alternative is you put a power of attorney in place. And you put a power of attorney in place and that gives somebody else the ability to take over your financial decisions and the health and welfare decisions."

With health at the core of the matter, Mr. Lewis elaborated on his personal reasoning: "In the event that you lose capacity it is not that they can take over now. You don't have to do it. So, I've had one in place since I was in my 30s. I have no foreseeability of losing my capacity that I'm aware of, but I have one in place in the event that someone needs to take over."

How to Get a Power of Attorney

Discussing the importance of planning ahead, he explained: "Do you have a power of attorney? If you don't, what would happen to your assets and the decisions? Who would be able to look after you in the event that you lost your capacity? And don't simply assume that someone could go and get access to your bank account. It is easy to do. It's simple."

He continued: "The best way is to get a solicitor, but if you can't, there are halfway schemes or you can do it yourself in England and Wales. It costs £92 to register in England and Wales per power of attorney. So is the financial one and the health and well. It's worth a look."