The Importance of Lasting Powers of Attorney: A Must-Have for the Future

In recent discussions, financial expert Martin Lewis has highlighted a crucial aspect of future planning that often gets overlooked—Lasting Powers of Attorney (LPA). While many people focus on creating a Will to protect their assets, which only takes effect after they have passed away, Martin Lewis argues that “a Power of Attorney is arguably more important than a will, and more urgent”.

Why does Martin Lewis say this? It is because life does not always happen as planned, and without an LPA in place, managing someone’s finances, or making decisions on their behalf as to their health and welfare, can become a complex, expensive, and extremely time-consuming process.

Martin Lewis shared a poignant example recently on social media, saying that he had just been made aware of an “older lady asking about moving bills into her name from her husband's, who she's caring for as he has early-stage dementia. Yet she hadn’t yet done Power of Attorney. This is by far the more urgent consideration”. This situation is a perfect example of why LPAs should be considered early in life. If the individual loses mental capacity without an LPA in place, their loved ones may be forced to go through the Court of Protection to gain the authority to manage their affairs, which can be a lengthy and very expensive process.

Martin Lewis stresses the urgency of setting up an LPA while the person still has the mental capacity to make those decisions and explained that LPAs should be put in place “while someone has the capacity to sign it. Then if and when they lose their faculties, the transition so you can look after their finances (and health and welfare) for them is relatively easy”. Taking the steps to put LPAs in place, ensures that, if the unexpected happens, there’s a clear legal framework in place for someone trusted to take control and make necessary decisions.

Furthermore, Martin Lewis explains that people should not wait until later in life to put LPAs in place and states that he put his own LPAs in place “when young. I did mine before I was 40. It is in place, so that if I lose my faculties in the future at that point (not before) someone can take over”. By setting LPAs up early, you are safeguarding your future without the worry of losing control when you need it most.

In conclusion, LPAs are one of the most important, yet often forgotten documents, for securing peace of mind. As Martin Lewis advises, the time to act is now—before it's too late; do not wait until a crisis hits. Contact our Private Client team who can assist you with putting LPAs in place today. Putting LPAs in place today will help to ensure a smoother tomorrow.