We never know what is round the corner so protect yourself now. With an ageing population and the rise of dementia related illnesses, many people worry about how they will handle their affairs in the event that they become incapable of doing so in the future.
A Lasting Power of Attorney (LPA) is a legal document which gives another person, known as an attorney, the authority to make certain decisions for you in the event that you lose capacity. These decisions can relate to your finances and/or your health and welfare.
It is a very valuable tool which we would strongly recommend all adults, irrespective of age, seriously consider entering into to protect them in the future.
The Importance of having an LPA as a Business Owner.
Have you ever considered what would happen if, one day, your mind deserts you? Or if you were mentally incapacitated by illness or accident? What would happen to your business then?
Who will step up and authorise payments; deal with suppliers; sign cheques; or pay your staff? You might assume it’ll be a colleague or a family member, but that would be a risky assumption to make.
You need something more concrete in place to protect your business.
You need a Business Lasting Power of Attorney (LPA).
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What is a Business LPA?
A Business LPA is a legal document which allows you (while you have mental capacity) to nominate a trusted individual to look after your affairs if the worst should happen.
It can also be the difference between your business surviving and continuing, or collapsing in on itself should you lose capacity.
Without it, you’re essentially leaving your business and personal affairs in the hands of the courts – a long and expensive process.
Why do I need one?
For most businesses, the Mental Health Discrimination Act 2013 looms large. The Act dictates that if a director or partner loses mental capacity, they cannot be removed from their position (unless outlined in the company’s Articles of Association).
For companies and partnerships, this is clearly complicated. For sole traders, it’s nothing short of disastrous. If a sole trader loses mental capacity, their business will almost certainly have to close as there will not be anyone with the authority to step in and run it.
So, if you’re a company director or a sole trader, you have a duty of care when it comes to your business and its staff, shareholders and key stakeholders. That’s why you need a LPA. You never know when illness or accident will strike, so it’s crucial that you’re prepared. A Business LPA helps you cover all the bases as you recover.
If you’d like to discuss arranging a Business LPA, we can help.
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Lasting Powers of Attorney
A Business LPA is a legal document which allows you (while you have mental capacity) to nominate a trusted individual to look after your affairs if the worst should happen.
Learn More