Why every business owner should consider making a Lasting Power of Attorney

Whether you are a sole trader, partner or director safeguarding your business against the unexpected is not only sensible but essential.

In our latest article, the dedicated Future Planning Solutions solicitors outline how a Lasting Power of Attorney can protect you and your business.

To discuss your LPA needs with a member of our expert team direct, call 01282 695400 for a confidential consultation.

What is an LPA?

A Lasting Power of Attorney is an important legal document that allows you to decide who can make decisions for you if you cannot.

An LPA falls in to two types: Health and Welfare Lasting Power of Attorney and Property and Finance Lasting Power of Attorney.

Whilst the first type would deal with personal care decisions and could range from determining your daily routine to where you would live; the latter, a Property and Finance LPA could be used to stipulate who can make business decisions if you are unable to.

In many respects, a Property and Finance LPA is a flexible document. Not only can it be used once capacity has been lost such as through illness or accident, it can also be used whilst you still have capacity but are not readily available. For example, if you are on holiday or in hospital for a period of time.

You can read more about the types of Lasting Power of Attorney by clicking here.

The risks of not having a business LPA in place

Without a business Lasting Power of Attorney in place, you could find that the day-to-day running of your business is severely disrupted if you were to lose capacity through illness, accident or age.

Take the following example: A sole trader is involved in a road traffic accident and incapacitated. There is no business LPA in place so no one can legally make financial decisions for the sole trader or their business.

Bank accounts could be frozen meaning that suppliers would not be paid and contracts left unfulfilled. In some circumstances, this could even lead to the closure of the business.

By appointing an attorney to handle your business Property and Finance affairs, you are creating a continuity plan and safeguarding your professional assets.

How to make a business Lasting Power of Attorney

Before you can create a business LPA, you will need to review certain documents such as your Articles of Association and shareholder agreements.

At Future Planning Solutions, we would always advise that you seek legal advice from a regulated firm of solicitors.

By instructing a professional, you can be confident that your LPA will reflect your needs and wishes.

Future Planning Solutions: safeguarding you and your business

Take the first step towards future proofing your business by contacting the experts at Future Planning Solutions today.

Call 01282 695400 to speak with a member of our specialist Lasting Power of Attorney team.

Or, if you’d rather that we call you, complete our quick online form and we’ll be in touch as soon as possible.