Money-saving expert Martin Lewis has used the latest episode of his TV show to encourage everyone to secure themselves financially against the ‘Three Ds’: death, divorce and dementia.
In last week’s edition of The Martin Lewis Money Show Live (ITVX, 11 March 2025) the financial expert and consumer champion told viewers: “No one wants to talk about the three Ds, but while everyone should hope for the best, they should plan for the worst.”
Lewis used the show to encourage viewers to ensure they have the proper protections in place to safeguard themselves and their loved ones in future.
He also emphasised the importance of talking about their plans, even though it is difficult.
“Many struggle to start this conversation with loved ones,” he said. “But whether it’s with parents, a partner or adult children, do try.
Being “blunt, warm and practical and “as candid as possible”, can make it easier, advised Lewis, telling viewers that “the odd tear in the eye just means you love each other”.
“The knock-on financial and emotional costs of not engaging are worse (though often you won’t realise till it’s too late),” he warned.
Some of the key issues Martin Lewis raised in the show included:
- The importance of having a Will.
A Will is one of the most important legal documents an adult needs and is vital if you’ve got a house, savings, a business, or people you’d like to look after when you’re gone.
It means you get to decide who gets what.
Dying without a Will means you die intestate and your assets are distributed according to a strict hierarchy.
Wills are even more important for unmarried couples as if one partner dies, the other won’t get anything without a Will.
While many people try to cut corners or save costs by attempting to draw up a homemade Will or using a template they find online, the only way to ensure it provides sufficient protection and is legally valid is to use a solicitor specialising in Wills.
“The gold standard way to draw up a Will is to get a solicitor to draft it,” said Lewis.
If you have a Will, you need to review it regularly and ensure it is up to date: “An out-of-date Will is almost as bad as no Will,” he warned.
- A Lasting Power of Attorney might be even more important than a Will.
Martin Lewis has previously emphasised how crucial it is for everyone to make a Lasting Power of Attorney (LPA) and he took this opportunity to again stress its importance.
An LPA is a legally binding document that enables an individual to appoint someone to make decisions about property and financial affairs, or their health and welfare, if they lose the capacity to do so.
Without an LPA, your loved ones can’t just walk into a bank and access your money, even if it is to pay the mortgage or to fund your care.
Financial issues are often urgent if you lose capacity, and Lewis underlined how people should have the necessary arrangements in place in good time, even if they think they might not need them.
“Losing faculties isn’t just something that happens to the elderly – accidents, strokes, early onset dementia and more may hit anyone,” explained Lewis.
“And younger people tend to have more separate finances, so it can be even tougher,” he went on, revealing that he set up an LPA in his 30s “just in case”.
- How to protect yourself financially during a divorce.
Lewis highlighted the practical steps individuals should take to protect themselves financially before, during and after a divorce.
Some key takeaway points were:
- Prenuptial or post-nuptial agreements may be a valuable safety net for the future.
- Pensions are often overlooked in financial settlements on divorce but are often one of the most valuable assets.
- Be careful about mortgage arrangements when you divorce. Both partners remain legally responsible for the mortgage unless one party takes full ownership or the property is sold.
- Remember to update your Will.
- Marriage comes with various financial perks, such as tax-free asset transfers, IHT breaks, and spousal benefits for pensions.
Divorce is not just an emotional decision. It has lasting financial consequences that must be carefully considered, Lewis cautioned.
Read more here.
- People shouldn’t fear Inheritance Tax.
Lewis recognised that inheritance tax (IHT) can be “much-discussed, much-feared and much-misunderstood”.
He attempted to bust some myths about IHT in the following ways:
- Most people shouldn’t be worried about IHT as only around one in 20 estates pay it. This will remain the case even if the planned April 2027 changes bringing pensions into the IHT net go ahead.
- Anything left to a spouse or civil partner is exempt from IHT.
- If your estate is under £325,000, no IHT is paid. This is boosted by £175,000 if you pass on your main residence to your direct descendants.
- All your unused allowance is passed to your spouse or civil partner. This means if you leave them everything, they can leave up to £1m (including a house) with no IHT.
- IHT is charged at 40% of everything above the total allowance.If your estate is £1.5m including the house, and it is all passed to one spouse, then on to dependants (so there’s £1m exempt), you’d pay 40% of the £500,000 above that (£200,000).
For more information about the issues that were covered in the episode and Martin’s other tips click here.
Solicitors for Estate Planning
At Larcomes, our private client solicitors will give you accessible, cost-effective and specialist legal advice on all estate planning matters, including Wills, LPAs, tax and trusts.
We have extensive experience helping a wide range of individuals and families with their legal needs and will guide you through the options that would best suit your circumstances.
For more information about Larcomes’ estate planning services, call 023 9244 8100 (Portsmouth) or 023 9224 6666 (Waterlooville) or make an online enquiry.
Please note that this article is not intended as legal or professional advice. It is for general guidance only, and updates to the law may have changed since it was published.
