Martin Lewis has urged UK households to make arranging a Power of Attorney their top financial priority, warning it is even more important than writing a will.
The moneysavingexpert made the comments on his ITV programme after being asked which legal document families should put in place first.
Mr Lewis said a Power of Attorney is essential because it allows trusted individuals to step in and manage someone’s finances and welfare if they lose the ability to do so themselves.
He advised people to invest in the document “for a very important reason.
“Power of Attorney says if I were to lose my faculties, then I will nominate other people who can look after my finances and my health and wellbeing for me.”
Mr Lewis warned that failing to arrange the document could create serious difficulties for families if something unexpected occurs.
He described the consequences of not having a Power of Attorney in place as “frankly a nightmare” for loved ones left trying to manage affairs during a medical emergency.
The moneysavingexpert explained that if someone loses mental capacity following an accident or severe stroke without having completed a Power of Attorney, relatives can face long and complex legal processes.
“If you don’t have a Power of Attorney in place, and you were to have an accident tomorrow so you couldn’t look after yourself with your faculties gone, or a severe stroke, then it is frankly a nightmare to go through the process of someone else trying to take over your finances,” he said.
He said that getting a Power of Attorney is vitally important
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He warned that during this period, families may be unable to access bank accounts or pay essential bills.
“Meanwhile, they may not be able to pay your mortgage for you, or pay for any treatments for you, or pay for anything you need,” Lewis added.
He said that while wills remain important, the urgency is different because they deal solely with how assets are distributed after someone has died.
Mr Lewis told viewers that a Power of Attorney is the document that could be required immediately if an unexpected event occurs.
“Your Power of Attorney is the one that tomorrow, if you haven’t got one, God forbid, you could really need,” he said. “So that’s the one I’d do first.”
Martin Lewis said the document isn’t just relevant for older people
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PA“I’ve had a Power of Attorney for 15 years even though I’ve got no foreseeability of losing my faculties,” he revealed.
The document is not only relevant for older people, warning that younger adults are also at risk from sudden illness or accidents.
“People think it’s only for old people, it’s not,” Mr Lewis said. “A young person could have an accident or a stroke just as easily.”
A Lasting Power of Attorney (LPA) allows an individual to appoint one or more people to make decisions on their behalf if they are no longer able to do so.
There are two types of LPA available in England and Wales.
One covers property and financial affairs, allowing appointed individuals to manage bank accounts, pay bills and deal with property.
The other covers health and welfare decisions, including medical treatment and care arrangements.
The cost of registering a Lasting Power of Attorney increased to £92 last November.
Despite the rise, legal experts have warned against delaying applications.
Kirsty Limacher, a legal consultant at the Association of Lifetime Lawyers, said the document remains a vital safeguard.
“An LPA is one of the most important safeguards you can put in place to protect yourself and your loved ones, so we don’t want this increase in fees to put anyone off making an application,” she said.
The arrangement must be made before any serious accident occurs that removes capacity from someone
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Ms Limacher said support is available for those concerned about the cost.
She explained that people receiving certain means-tested benefits may be eligible for a full fee exemption.
Those on low incomes may also qualify for a reduction in the registration fee.
He warned that once capacity is lost, it is too late to make a Power of Attorney, leaving families with limited options.
The Office of the Public Guardian oversees the registration of LPAs and has previously urged people to apply early to avoid delays.
