Martin Lewis urged all adults to take 'essential' action to protect personal finances during his ITV show on Tuesday (March 15).
The Money Saving Expert was tackling the "difficult but important conversations" to have with friends and family to help prepare and protect finances in the event of any of the "3 Ds: death, divorce, and dementia". One audience member posed a question regarding the age at which you should set up a power of attorney.
Power of Attorney, as stated by Which?, "is a legal document where one person (the donor) gives another person the right to make decisions on their behalf". It adds: "If you want someone to act on your behalf in financial or medical decisions you'll need to give them power of attorney over your affairs."
In response to the question, Martin urged people to seek out a power of attorney as it was "more important than a will", reports WalesOnline. Audience member Caitlin said: "Hi. So my question is at what age should you nominate a power of attorney and how do I go about doing so?" Martin inquired: "How old are you?"
When Caitlin replied that she was 25, Martin said: "That's a good age. Simple as that – 25 would be good. Power of attorney... I think in many ways I think 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 people and you won't use it anymore. But if you lose your faculties, if you lose your abilities to look after yourself mentally, then the question is: what happens to your finances?
"And the truth is, let's say it's dementia, an accident, or stroke 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'd 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."
He concluded: "To answer your question. Why not do it now and have it ready if you've got the assets and you need it? Look, if there's other people that can look after you if something happened to you that might be a different scenario."
He then went on the explain just how a power of attorney works: you nominate a friend or relative to take over your affairs if you lose your faculties. He stressed the "if" in particular, saying: "It doesn't mean you're giving up control now. I've had a power of attorney since my 30s. Thankfully I've had no foreseeability of losing my faculties. No-one takes control of my finances – I'm in control of it. But I have a power of attorney to do that." Martin then went on to explain how to apply for one and gave options for those and added: "My big message is it is better to have a power of attorney than not."
Many viewers on Twitter were quick to support this statement in agreement. One user, @EdgwareBubbles, wrote: "@MartinSLewis yes, yes yes, Power of attorney is SO essential. I registered my mother's 5 years ago - she's in a nursing home now & I'd be lost without it. Everyone should have one for financial matters! #martinlewis"
Another pleaded with other users to get a power of attorney, stating: "As stated by #MartinLewis if you haven't done it please please get one sorted. My friend was in ICU with Covid and spent 128 days in hospital. She didn't have a POA and we went through hell - couldn't even pay her rent Please get it - it helps your loved ones."
The Martin Lewis Money Show airs on Tuesdays on ITV1 at 8pm.
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