Lasting Powers of Attorney (LPA) are very useful and powerful documents which you can put in place to ensure that if you become unable (either on a permanent basis or on a temporary basis only) to manage your affairs, be they financial or health related, the people whom you have chosen can make those decisions for you. The people whom you appoint in this capacity are called “Attorneys”.
Of course, it is important for LPA’s to be put in place to manage your personal monies and affairs but, if you are a business owner, have you thought what impact your incapacity (be it physical or mental or both) would have on the ongoing running and prosperity of your business? If you are a sole trader or in a business partnership or, indeed, a Director or a Shareholder of a Company, having an LPA in place, to enable the smooth transition of decision making from yourself to an Attorney, if something were to happen to you and you are unable to make those decisions, must bring peace of mind.
Having an LPA in place to cover such an eventuality would enable a business to keep functioning in unforeseen circumstances. It would ease any distress by co-workers or family members who may feel that decisions need to be made but without the power to make them.
By placing restrictions or conditions within the LPA documentation or to provide instructions for certain situations, will also assist the smooth running of the business even if the person who would normally be at the helm is unable to return to that position. In the event of a loss of capacity and no LPA is in place, an Application to the Court of Protection (seeking the appointment of a Deputy) is the only other option. This will take many months to achieve, which can leave a business vulnerable to failure particularly if no actions to keep it running day to day can be undertaken during the application process.
When preparing LPA’s we would be able to discuss the structure of your business, consider who would be the most appropriate Attorneys for your business proposals and whether, in fact, it would be prudent to have a separate LPA for your business affairs from your personal and private assets. If you would like further advice on LPAs generally or, specifically, due to any business interests, please do not hesitate to contact us on 02920 470909