Martin Lewis – “Lasting Power of Attorney – It’s incredibly important”

You may have recently watched Martin Lewis’ award winning programme, The Martin Lewis Money Show Live, where he was urging the public to review their own affairs. A large portion of the programme focused on Lasting Powers of Attorney (LPAs) and Wills, with Martin Lewis emphasising how “incredibly important” they both are and providing a guide to setting up a Lasting Power of Attorney. He also addressed the many misconceptions, summarising how LPAs are for lifetime and Wills are effective upon death.

It is paramount to ensure that you have your affairs in order now, whilst you’re able. This is not only for yourself but also for your loved ones, such as family and friends. There is a stigma attached to estate planning; that it is for the older generation who may succumb to frailty, but the reality is that no one is exempt from ill health such as dementia, a stroke or even a trauma injury. Planning for the event of loss of capacity is a difficult thought or conversation to have now but could potentially save you thousands in the future.

Martin Lewis explains that Lasting Powers of Attorney (LPAs) are a legal document in which an individual confirms to the Court, who they wish to act (or make decisions) on their behalf if they were unable to do so. As Martin Lewis notes there are two types of Lasting Power of Attorney; one which deals with your property and financial affairs, and one which helps with your health and welfare needs. Any individual can have both or either, but obviously, it is recommended to be fully covered and implement both types of LPAs.

A Property and Financial Affairs Lasting Power of Attorney (LPA) allows an individual to appoint someone (an attorney) with legal authority to make decisions regarding their financial matters, property, and related affairs if they become unable to do so. This includes managing bank accounts, paying bills, selling or buying property, handling investments etc. Creating a Property and Financial Affairs LPA provides a practical way for individuals to plan for unforeseen circumstances, ensuring their financial interests are safeguarded by a trusted representative in the event of incapacity.

A Health and Welfare Lasting Power of Attorney (LPA) authorises an individual to appoint a trusted representative (an attorney) to make decisions on their behalf regarding medical treatment, care options, and personal welfare etc. if they are unable to do so. This includes choices about living arrangements, medical interventions, end-of-life care etc. One of the decisions you might relay to your attorneys is whether or not you wish to refuse life-sustaining treatment. Creating a Health and Welfare LPA allows individuals to proactively designate someone they trust to advocate for their well-being, ensuring that their preferences are honoured and their medical and personal needs are addressed in situations of diminished mental capacity.

Martin Lewis’s eye-opening tips offered advice on the unfortunate scenario of what would happen if an individual were to lose capacity, without a Lasting Power of Attorney in place. The short answer is that it can be an administrative nightmare, bearing heavily on your loved ones, notwithstanding a lengthy and extremely costly Court application process.

Should you lose mental capacity without a valid Lasting Power of Attorney (LPA) or Enduring Power of Attorney (EPA), an individual seeking to represent you may have to apply to the Court of Protection for a Deputyship Order. This process is both time-consuming and expensive, with costly Court fees. Unfortunately, you lose the ability to choose your Deputy since your mental capacity is compromised. The Court of Protection will consider whether the person applying to be appointed as Deputy is suitable for the role.

It should also go without saying, that everyone ought to hold a valid Will, although this is not always the case. Again, Will writing is regarded as a “later life chore”, but as Martin rightly explains, it is crucial that the wishes you are able to easily convey now, are formulated into a legally binding document to ensure that this takes place after you pass away. For the older generations, it may be who inherits the assets and on what conditions, and for the younger generation it may be focussed more on living arrangements and guardianship of minor children.

Having a valid Will ensures your wishes are legally honoured after your death. It can provide clarity on asset distribution, the appointment of guardians for minors, and may minimise family disputes. A Will allows you to name an executor or executors to manage your estate efficiently. Without a valid Will, intestacy rules govern, potentially leading to unintended beneficiaries. A well-crafted Will can optimise inheritance tax planning, as well as preserving assets for loved ones. It also simplifies the probate process, potentially saving time and costs. Ultimately, a valid Will grants peace of mind, assuring that your assets go to the intended recipients according to your instructions.

Finally, Martin rightfully raises the point of “next of kin” whereby people wrongfully assume that their next of kin will be able to deal with their affairs if they’re unable to do so, or that they will “inherit anyway”. The truth is, there is no legal basis for “next of kin” and this is because it needs to be formalised legally, such as in an LPA and a Will. It is strongly advised, to avoid any ambiguity or potential future problems, that you contact one of our expert Solicitors to advise you on the benefits of Lasting Power of Attorney and Will drafting.

Avoid any financial and emotional cost on your loved ones and contact our team of experts who can provide support and advice for all of the topics covered above. Therefore, if you would like any information or have any questions, please contact your local Wills & Probate Solicitor at https://www.butcher-barlow.co.uk/personal-services/wills-trusts-and-estate-solicitors/

By Ben Davenport-Lawton Will, Trusts and Probate specialist based at our Runcorn and Sutton Weaver offices.