What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document used to appoint someone who can make decisions on your behalf when you are not able to do so. They can then make decision in relation to your personal affairs.
Why should business owners have a lasting power of attorney?
Business owners should consider carefully about the running of the day to day business if they are not available or unable to make the decision. Business owner can make a Business Lasting Power of Attorney (BLPA) in the event they are not available, lack capacity and can no longer make a decision. The nominated BLPA can act on their behalf in relation to the business interest and finances should any of these situations arise.
Who are BLPA’s for?
All business owners, whether that be a sole trader, partners and company directors.
What does a Business Lasting Power of Attorney deal with?
This primarily deals with the assets and financial aspects relating to your business.
In what circumstances can a business LPA be used in?
• When the business owners has a medical condition and no longer has capacity
• When the business owner is unavailable either on business or on holiday
• When the business owner has an accident and cannot make decisions as a result#
Effects of not having a Business Lasting Power of Attorney
Should a business owners find themselves in a position where they lack mental capacity, unavailable or had an accident where that might be either be temporarily or permanently, their business is at risk if they do not have a (BLPA), if there is no authorised person to make a decision. If such a situation does arise and there is no BLPA in place one of the major affects is the bank account of the business can be frozen so for example employee won’t be able to get paid, bills won’t be paid etc which can have a detrimental effect on the business.
We are a leading law firm advising on private client matters throughout England and Wales. Please contact us if you need advice on the above on 01706 671 434.
This page is for information purposes only and should not be relied upon as a substitute to legal advice and does not amount to legal advice.