Martin Lewis has issued a warning to anybody who currently lives with their partner.
The Money Saving Expert has stressed the importance of a will, especially for those who aren't married or in a civil partnership. On the latest episode of the ITV Martin Lewis Money Show, the consumer champion explained that those who do not have a will could have their money dispersed by the state.
As reported by Birmingham Live, he pointed out that it doesn't matter how long-standing or established a relationship is, so long as there is no will the state can decide what happens to assets.
Martin explained: "If you die without a will, it is the state - not you - who decides where your assets go. It’s called the intestacy rules and they are complex and they vary by UK nations."
Martin went on to explain how it is "especially important" to consider a will if you’re not married or in a civil partnership.
He said: “If you’re cohabiting and you’ve lived together for 20 years and you’ve got 17 children - that doesn’t matter in the eyes of the law. You would not get anything without a will.
"So it’s even more important in those situations. I’d also suggest you consider a cohabitation agreement of what happens if you were to split up if you’re not married.”
The consumer champion also issued a warning to those with dominant financial partners. If someone doesn’t deal with finances, and experiences one of the three D's - "death, divorce, dementia" - they could end up "stuck".
He then advised: "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 added: "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."
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