Money Saving Expert founder Martin Lewis has urged everyone to pay for a financial document that he believes is “more important than a will”.
The financial expert said he has had this £92 document since he was in his 30s and stressed just how important it is.
He explained a lasting power of attorney (LPA) is essential and allows you to appoint other people known as 'attorneys', to assist you in making decisions or to make decisions on your behalf.
Speaking on his BBC podcast, he said: "Wills are really important, but in my view, a power of attorney is even more so, which is why it's worrying that far fewer people have them. Best is to have both. But when you're dead, you're dead; it's just a question of where your assets go."
Power of attorney exists to give families control over what happens to someone if they suffer an accident or an illness and are unable to make their own decisions.
"If you lose mental capacity, don't assume relatives can access your bank, your insurance, and a whole host of other things. And that can literally mean the money you need to pay for your care is locked away and inaccessible. The money that is needed to pay for your mortgage is locked away and inaccessible. Someone else is going to have to find the cash in the meantime,” Mr Lewis added.
"That is why I say this is more important than a will because that is a proper practical problem. So consider if you were to lose mental capacity, who would look after you? Who would you want to be able to access your funds to pay for things? Who would you trust? And who would ensure that the money is working for you? That your savings are in the right place, your investments are in the right place.
"And losing faculties doesn't just happen to the elderly. Some people have severe strokes, they have accidents, they have early dementia. I've had a power of attorney in place since my 30s."
Mr Lewis added that registration for an LPA costs £92 in England and Wales and £96 in Scotland; meanwhile, in Northern Ireland it costs £180.
