Taking to X, the Money Saving Expert founder said: “I’ll talk you through Free Wills (and key rules), why Power of Attorney’s arguable more important (& how to DIY), crucial Inheritance Tax need-knows and more. Do suggest your parents / partner / children watch if conversations about these things have been difficult.”
On a previous episode of his ITV1 show, he said: “I think in many ways, a Power of Attorney is more important than a will, because if you die, you die and the money is going to go on to other people and you won’t use it anymore.
“But if you lose your faculties, if you lose your ability to look after yourself mentally, then the question is what happens to your finances? And the truth is, let’s say it’s a dementia or an accident or a stroke – severe ones – don’t assume your family can access your money, not even if it’s the money needed to pay for your care.
“It can be locked away without anyone being able to touch it. To get it they’ll need to apply via the Court of Protection or equivalent. That’s a hassle. It’s long. It’s costly. You might not get the right person appointed that you would have wanted to take over your faculties.”
There’s more details on his Money Saving Expert website.
What is a lasting power of attorney?
A lasting power of attorney (LPA) is a legal document that lets you (the ‘donor’) appoint one or more people (known as ‘attorneys’) to help you make decisions or to make decisions on your behalf.
This gives you more control over what happens to you if you have an accident or an illness and cannot make your own decisions (you ‘lack mental capacity’).
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You must be 18 or over and have mental capacity (the ability to make your own decisions) when you make your LPA.
You do not need to live in the UK or be a British citizen.
There are 2 types of LPA:
- health and welfare
- property and financial affairs
You can choose to make one type or both.
How to make a lasting power of attorney
Choose your attorney (you can have more than one).
- Fill in the forms to appoint them as an attorney.
- Register your LPA with the Office of the Public Guardian (this will take 8 to 10 weeks if there are no mistakes in the application).
It costs £82 to register an LPA unless you get a reduction or exemption.
You can cancel your LPA if you no longer need it or want to make a new one.
Health and welfare lasting power of attorney
Use this LPA to give an attorney the power to make decisions about things like:
- your daily routine, for example washing, dressing, eating
- medical care
- moving into a care home
- life-sustaining treatment
It can only be used when you’re unable to make your own decisions.
Property and financial affairs lasting power of attorney
Use this LPA to give an attorney the power to make decisions about money and property for you, for example:
- managing a bank or building society account
- paying bills
- collecting benefits or a pension
- selling your home
It can be used as soon as it’s registered, with your permission.
Contact the Office of the Public Guardian if you need help.
Office of the Public Guardian
customerservices@publicguardian.gov.uk
Telephone: 0300 456 0300
Textphone: 0115 934 2778
Monday, Tuesday, Thursday, Friday, 9am to 5pm
Wednesday, 10am to 5pm
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