There has been much focus on Lasting Power of Attorney’s (LPAs) recently, especially as they are important for those who have lost capacity and require people they trust to manage their affairs. There has been less talk about LPAs for businesses which can provide protection for a business owner, providing a safety net should something happen.
Without an LPA in place, the Court of Protection will need to appoint a deputy, which can take time (several months), meaning a business could quickly end up without access to bank accounts or with the ability to make important decisions. It is also expensive for a deputy to be appointed, which can cause further stress to the business.
If a business LPA is in place, the nominated person, the attorney, will be able to temporarily take over the running of the businesses with the ability to deal with important decisions and sign contracts.
Although unlikely to be used, having an LPA in place can ensure that not only is the business kept running, those who rely on the business remaining stable, such as employees and suppliers, will have their roles secured.
An LPA does not mean that the attorney will remain permanently; they are required to “so far as reasonably practicable, permit and encourage the person to participate, or to improve their ability to participate, as fully as possible in any act done for them and any decision affecting them.” This means that a business owner will be involved in decision making.
We can help you create your Business LPA, which must be signed by yourself as the Donor, the chosen attorney/s and a certificate provider and all witnessed.
A certificate provider ensures that the decision has not been made whilst under pressure and that the person awarding the power understands the consequences.
The registration fee (payable to the Office of The Public Guardian) a business LPA is currently £82, small change compared to the potential cost of not having one…
(This does not include our charges to draft your Business LPA)
If you would like to speak to one of our expert Wills and Probate team ring us on 01603 927273 or email us at [email protected]