Business LPAs

We all know that planning for the future is a really sensible move. But it’s something many people put off. Planning for what life may have in store isn’t always seen as a priority; it may even be something you’d rather not think about.

Uncertain as the future is, there can be real benefits in thinking ahead to what would happen if your day-to-day life were to become significantly different. In particular, what if you were to become mentally incapacitated such that you couldn’t make decisions for yourself? Who would decide where you should live, what healthcare you should receive, what should happen to your property and possessions?

A Lasting Power of Attorney (LPA) is the legal document that provides for that possibility by allowing you (while still mentally capable) to name an ‘attorney’ or ‘attorneys’ to make certain decisions for you in the future. An increasing number of clients are choosing to put LPAs in place because these documents give peace of mind that trusted people will take care of their interests if need be. But LPAs are not just for people’s personal lives – their health and welfare, and finance and property. They can also be made by business owners who want to appoint people to step into their shoes to some degree, if that becomes necessary.

It may be that a business owner loses mental capacity because of an accident or an illness. In that situation, the business LPA could be triggered and the nominated attorney would be able to make certain decisions in the interests of the business. That could include authorising payments – things that are needed in order to keep the business going.

Some of our clients have chosen to put in place LPAs for their personal lives and separate LPAs for their business. It’s a wise step to take. It means that the right provisions are in place, should they be needed. And the uncertainty about who would actually be able to make those important decisions (you can’t count on a husband, wife, son, daughter, second-in-command, for example, being legally allowed to do so) on their behalf is removed.

If you would like to know more about LPAs and whether a business LPA would suit your organisation, please contact a member of the Private Client team on 01264 353411 or email at probate@bsandi.co.uk and a member of our team will assist you.