Jacksons Law Firm associate solicitor Helen Milburn offers some critical LPA advice for business owners…
If you are a business owner amongst everything you have to think about on a daily basis to keep the wheels turning in your business, you probably haven’t had chance to give a second thought to what would happen if you were not there or able to keep everything on track.
I think it is important to take a step back and reflect on this; what would happen to your business if you lost mental capacity?
We often associate losing mental capacity as something that might happen to us with old age but this is not always the case.
It could be brought on quite suddenly through an accident or illness at any time in our lives.
It may not be permanent or long term but even if you were ‘out of action’ for a short while what would happen to your business?
Could vital decisions be made? Could contracts be fulfilled? Could suppliers and staff be paid?
When you stop to think about it, you not being there to handle these things could create a whole manner of problems for your business.
Whilst only you will be able to answer these specifically, I can provide you with an answer that might help with all of these; you should really make a Lasting Power of Attorney for your Commercial and Business Affairs.
In a nutshell, a Lasting Power of Attorney (LPA) is a legal document in which you name the people (your “attorneys”) you would want to be able to make decisions and deal with transactions on your behalf if you lost the mental capacity to do them yourself.
You can make LPAs for your personal property and financial affairs and health and welfare, but what is of most interest here is that a commercial and business LPA can be used and tailored to specifically deal with your business interests.
A commercial and business LPA can work for all business structures and can cover whether you are a sole trader, a partner or a director.
You can (and should) choose people who have the necessary skills and expertise to run your business and these can be different to those who you would want to look after any personal financial matters.
Your LPA can be tailored to refer to your business assets and the decision-making powers you want your attorneys to have in line with the structure of your business.
Whilst an LPA is always prepared in the hope that it will never be required it is always wise to plan ahead and provide peace of mind and security for you and your business in the future.
Associate solicitor, Jacksons Law Firm
If you would like to discuss LPAs for your business assets or LPAs generally, contact Helen Milburn on firstname.lastname@example.org or 01642 873050.