DO I NEED A BUSINESS LASTING POWER OF ATTORNEY?
DO I NEED A BUSINESS LASTING POWER OF ATTORNEY?

19 February 2019

As a business owner if you become mentally incapacitated tomorrow then who would pay your bills or invoices, ensure staff salaries are paid and complete any outstanding work for your customers and clients?

 

You cannot assume that a colleague or family member will be able to gain the relevant authority to make decisions on your behalf.

 

Therefore, to protect your business interests, particularly if you are a sole trader or self-employed, you ought to consider a Business Lasting Power of Attorney.

This is a legal document that allows you to nominate people to make decisions on your behalf if you were ever become incapacitated.

 

Lasting Powers of Attorney (LPAs) do not only cover personal assets but may also cover business assets and interests in a business. As a business owner it may be in your best interests to review your affairs and look to put in place a Business LPA to cover the situation, not only if you were mentally incapacitated, but if you were abroad on holiday or on business, or if you were to have an accident and were unable to attend meetings.

 

What happens if I don’t make an LPA?

 

If you have not made a Business LPA and you subsequently lose the capacity to make your own decisions or become of unsound mind, then, if you do not have other arrangements in place (such as partnership agreement or articles of association), it may be necessary for someone to apply to the Court of Protection for a Deputyship order. This process can take between six to 12 months to complete and can be expensive. The appointed Deputy may not be who you would have appointed as your attorney.

 

If you would like any further information in relation to Business LPAs or a review of your current LPAs or business structure, please contact Sian Lias in the Wills and Probate team or Jack Gardener in our Commercial team at Phillips Solicitors.

 

You can call Sian on 01256 854618 or email [email protected] or call Jack on 01256 854665 or email [email protected]

 

 

Disclaimer

This article is current at the date of publication set out above and is for reference purposes only. It does not constitute legal advice and should not be relied on as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.

Have more questions?
Our expert solicitors are here to take the worry off your hands.
Please call us or email and we’ll get back to you as soon as possible.
News
CONSENT TO BRING EMPLOYMENT TRIBUNAL CLAIMS 14 MONTHS OUT OF TIME
CONSENT TO BRING EMPLOYMENT TRIBUNAL CLAIMS 14 MONTHS OUT OF TIME

Phillips Solicitor’s Employment Team represented the Claimant, Mr Baugh, a senior manager working for IBM, an international company. He has claims for unfair redundancy and age discrimi ...

More
WAGATHA CHRISTIE: WHAT IS DISCLOSURE, WHY IT MATTERS AND WHY DAVY JONES’ LOCKER MIGHT NOT BE THE SOLUTION
WAGATHA CHRISTIE: WHAT IS DISCLOSURE, WHY IT MATTERS AND WHY DAVY JONES’ LOCKER MIGHT NOT BE THE SOLUTION

The Wagatha Christie trial, that concluded at the High Court last week, has certainly provided many talking points these past couple of weeks.  Whether it was the insight into the relat ...

More
NO FAULT DIVORCE
NO FAULT DIVORCE

Did you know that on 6th April 2022 the law relating to divorce was updated? Fault will no longer be a basis for divorce and this marks the biggest change to the divorce law since the M ...

More
NATIONAL INSURANCE CONTRIBUTIONS INCREASE – WHAT DOES IT MEAN FOR YOU?
NATIONAL INSURANCE CONTRIBUTIONS INCREASE – WHAT DOES IT MEAN FOR YOU?

Today in his Spring Statement Rishi Sunak, confirmed that the government will press ahead with its decision to use National Insurance Contributions (NICs) as a tax to help raise £36bn t ...

More
IS IT RIP TO RPI?
IS IT RIP TO RPI?

Future proofing your commercial lease for RPI reform The UK Statistics Authority (the Authority) published its response to the consultation on the reform to the Retail Prices Index (RPI ...

More
PHILLIPS APPOINTS SENIOR SOLICITOR, CLARE STRACHAN, IN THEIR COMMERCIAL PROPERTY TEAM
PHILLIPS APPOINTS SENIOR SOLICITOR, CLARE STRACHAN, IN THEIR COMMERCIAL PROPERTY TEAM

Leading Hampshire law firm Phillips Solicitors continues to go from strength to strength with the appointment of senior solicitor Clare Strachan, who has joined the firm as a Legal Dire ...

More