What is a Business Lasting Power of Attorney?
- 30th July 2021
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Whether you are a sole trader, shareholder or partner, it is important that you consider the possible implications for your business should you become incapacitated through illness or injury. In this blog, we will answer your questions on how a Business Lasting Power of Attorney (Business LPA) can be useful for your business.
What is a Business LPA?
A Business LPA allows you to appoint someone to make decisions on your behalf concerning your business, should you lose capacity and are unable to make decisions for yourself. It cannot be assumed that your business colleagues or family have the automatic authority to make certain decisions. For example, if bank accounts are jointly held in the names of business partners or directors, the bank may choose to freeze the account. By having a Business LPA in place, your chosen Attorney(s) would be able to ensure that the day-to-day running of your business is maintained.
What else can my chosen Attorney do?
An Attorney can also deal with property that is owned or leased by the business, organise insurance, invest assets and deal with tax affairs.
You can be as specific as you want regarding your Attorney’s powers. It is important that these wishes are clearly set out in the Business LPA and at Loosemores we can provide you with the appropriate advice for your specific needs.
What would happen if I didn’t have a Business Lasting Power of Attorney?
Without a Business LPA or appropriate provisions in other governing documents, an application may have to be made to the Court of Protection to seek a court order to allow an individual to carry on the business on your behalf. On average it can take between six to seven months for such an order to be granted, which could possibly have a detrimental effect on your business.
If you need advice, guidance or support from our team of legal experts, please contact Maria Cosslett, Partner and Head of Probate, Wills and Trusts at Loosemores via CosslettME@Loosemores.co.uk or Sabrina D’Acri Davies via d’acridaviesS@loosemores.co.uk or call 029 2022 4433.