The price of a legal document championed by money expert Martin Lewis as being more vital than a will has officially increased. The fee to register a Lasting Power of Attorney (LPA) with the government has risen by £10.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a powerful legal document that allows you, known as the 'donor', to appoint one or more people, called 'attorneys', to make decisions on your behalf. This comes into effect if you ever lose the mental capacity to manage your own affairs.
There are two main types of LPA that individuals are encouraged to set up. The Property and Financial Affairs LPA covers decisions about money, bills, and property. The Health and Welfare LPA is for decisions about daily care and medical treatment.
If you register both types, the total cost has now risen from £164 to £184.
Why Martin Lewis Says It's 'More Important Than a Will'
Martin Lewis, the founder of MoneySavingExpert.com, has been a vocal advocate for people to set up an LPA. He argues that while wills are important, a power of attorney provides crucial protection during your lifetime.
"Wills are really important, but in my view, a power of attorney is even more so," Lewis stated. He explained that without an LPA, if you lose mental capacity, your family faces a "nightmare" situation. Your assets can be frozen, leaving loved ones unable to access funds to pay for your mortgage or care.
Instead, they would be forced to apply to the Court of Protection, a process Lewis describes as taking months or years, being extremely stressful, and costing a significant amount of money.
A Lifelong Protection, Not Just for the Elderly
Lewis was keen to dispel the notion that LPAs are only for older people. The 53-year-old financial journalist revealed he has had his own in place since he was in his thirties.
"In my view, this is crucial peace of mind protection," he said. "If you haven't got one, I know it's a grown up thing to think about, but it's also a really important thing to think about."
This sentiment is echoed by legal professionals. Chilcotts Law commented, "Planning for the future might not feel urgent, but it’s one of the most important steps you can take to protect yourself and those you care about." An LPA ensures you retain control over who makes decisions for you if you cannot.
The price change was confirmed by the government this week, with the registration fee for each LPA increasing from £82 to £92 through the Office of the Public Guardian (OPG).
