BBC and ITV money expert Martin Lewis has offered important advice as he said “it’s just not worth doing if you can possibly scrape to do it”
Martin Lewis has explained why people really should not try to avoid paying for one process – and said some who evade it end up in ‘nightmare’ situations(Image: ITV)
Martin Lewis has warned of the “devastating consequences” people could face if they decide to save a few pounds on an important process. Martin issued the warning as he apologised to a woman in her seventies in advising her on her financial situation. The woman, Mags, is 73 and has been with her husband for 14 years – although they decided from the start to have separate bank accounts.
She contacted Martin for some advice to enable one of them to take charge of the other’s finances when that becomes necessary with age and declining health in the future. But she said a route repeatedly favoured by Martin was “too expensive right now” – yet still wanted to sort something out quickly due to their ages.
She asked the money expert on the latest episode of the Martin Lewis Podcast: “My question is what are the options left for us to ensure that either one of us is able to take charge of the other’s finances before it’s too late?” Martin did not hold back as he apologised and said “forgive me with my really blunt answer”.
He told Mags about “nightmare stories” of people who did not have one document in place that can help people when they can no longer look after themselves. He said those people instead had to go through a lengthy legal procedure via the court of protection – and he said trying to avoid just coughing up in the first place can lead to “devastating consequences”.
Martin, founder of the Money Saving Expert website, said: “It can be very difficult to get through. People tell me nightmare stories about it and it takes a long amount of time.” He then went on to explain why the couple could avoid such a process by spending as little as £200 together – or even less.
Martin says he has a ‘really blunt answer’ for Mags
The document he was talking about is called a lasting power of attorney. The gov.uk website on the subject – you can visit it here – explains that this is a legal document that lets you appoint someone to help you make decisions, or to make decisions on your behalf. The government says it “gives you more control over what happens to you if you have an accident or an illness and cannot make your own decisions”.
Martin, known for his BBC podcast and ITV programme the Martin Lewis Money Show, said: “Power of attorney is set up to prevent you having to go to the court of protection so that you can say now I am giving this person the ability to take over my finances if I can’t. So you’ll forgive me with my really blunt answer, but there isn’t really a route. You have to be giving somebody the ability when you’re ready and you do lose your faculties.” He admitted that it can be expensive to go through a solicitor. This route can potentially cost between £400 and £750.
You can register them yourself for £92 in England and Wales. If you earn less than £12,000 and can provide evidence, you can get one for £46. But Martin warned that they can be difficult to fill in yourself – and warned many are rejected. Instead, he suggested spending a small amount more – around £100 each or in Mags’ case about £200 overall.
This route is the Which? Wills service – an award-winning service offered by consumer watchdog Which? Their specialist lawyers and paralegals can help you get your lasting power of attorney sorted.
Which? says the process involves:
- answering a few questions to find the right documents
- Following their guidance notes to fill in the documents
- When you have completed the documents, Which?’s specialists will review the paperwork to ensure it is legally compliant
When Mags asked in her question to him what other routes there were that were cheaper than a power of attorney, Martin’s response was simple. “None,” he said. “Power of attorney. Sorry to be really blunt on this. That is exactly what a power of attorney does. If you do not have power of attorney, especially with your separate bank accounts and your separate finances, if one of you were to lose your faculties, so the other has to take over, you would have to go to the court of protection. To apply for it. It’s massively more expensive than power of attorney.”
He said a power of attorney costs £99 in Scotland and £189 in Northern Ireland. Martin said the documents can be filled in on your own, but said that “to be really blunt” you have to be very diligent and experienced at filling in forms.
Advising Mags to listen to his message on power of attorneys, he said: “If you forgive me, at your age, where the risks of losing faculties do increase with age, and with your separate bank accounts, this is a good use of money. I’m sorry. I’m sorry. I know you don’t want to spend it, but do your power of attorney.”
Why Martin Lewis says a power of attorney is more important than a will
He admitted that the process can be expensive and lamented that it wasn’t cheaper. But he said they are even more important than a will. He said: “When you’re alive, you might have the cost of your care, your mortgage might need paying if you’re by yourself and all of those other things.
“And without a power of attorney, the Court of Protection takes a long time. The people you love trying to look after you can be locked out of your finances even to pay for your necessities, which is why while I think wills are incredibly important and the vast majority of people should have them, for me power of attorneys are even more important because the consequences of not having one can be devastating.
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“And I’ve known a number of people, especially through Covid and other times, who haven’t had them set up and it just massively compounded the already, let’s be honest, grief and hassle that you have when your loved one has lost capacity. To add on top of that the huge administrative stress and burden that not having a power of attorney goes through. It’s just not worth doing if you can possibly scrape to do it.”
Find out more about getting a power of attorney with Which? Wills here. Listen to Martin’s full podcast here. Read the MSE guidance on power of attorneys here.