Households Urged to Secure £82 Power of Attorney Document

Many households in the UK are being encouraged to obtain a Power of Attorney document, which financial expert Martin Lewis claims is “more important than a will.” The document currently costs £82, but the UK Government has announced that the price will increase to £92 on November 17, 2023. Lewis emphasizes the significance of this legal document in ensuring that individuals can manage their affairs if they become unable to do so themselves.

During a recent episode of his podcast, Lewis explained that a Lasting Power of Attorney (LPA) allows individuals—referred to as ‘donors’—to appoint trusted people, known as ‘attorneys,’ to make decisions on their behalf. These decisions can pertain to either health and welfare or property and financial affairs, depending on which type of LPA is established.

Lewis, who has had his own LPA since his thirties, highlighted the importance of this document for families. He stated, “Without a power of attorney, if you lose mental capacity, all your assets can be locked away, leaving your loved ones unable to access them.” This scenario can lead to significant stress and financial complications, as family members may have to navigate the court of protection, a process that can take months or even years.

He further elaborated, “Wills are really important, but in my view, a power of attorney is even more so. Best is to have both. But when you’re dead, you’re dead; it’s just a question of where your assets go.” The urgency of securing a Power of Attorney now may provide peace of mind for many families, especially with the impending price increase.

Lewis urges UK residents to consider the potential consequences of not having an LPA. “This is crucial peace of mind protection,” he remarked. He encouraged people to think about the future and the necessary steps to safeguard their financial and health decisions.

There are two types of LPAs: one for health and welfare decisions, and another for property and financial affairs. The health and welfare LPA allows an appointed attorney to make decisions regarding the individual’s health care, including treatment options when the individual cannot express their wishes. Meanwhile, the property and financial affairs LPA enables the attorney to manage financial matters, such as paying bills or handling investments.

For those interested in obtaining more information about LPAs, resources are available on the official government website. Lewis’s advocacy serves as a timely reminder for families to take control of their future planning and ensure that their wishes are respected, even in challenging circumstances.