A Lasting Power of Attorney (‘LPA’) is a document under which you can appoint an Attorney/Attorneys to assist in connection with the management of your property and financial affairs, and, in a separate form, in respect of your health and welfare decisions. Mental incapacity can affect us at any time and if this happens it can be considerably easier if we have prepared by completing LPAs, be a protracted and expensive process.
For individuals who have businesses, it is important to consider Business LPAs. Shareholders, partners and sole traders are some business owners who may benefit from a properly drafted Business LPA. You should consider that without proper advice in respect of what the position would be in connection with the running of your business in the event of your mental incapacity, this might have a serious and detrimental impact on your business.
The proper selection of business LPA Attorneys is very important. It is possible that the Attorneys selected in the context of your personal finances, are not suited as Attorneys in the context of your business. You should consider the benefit of having three separate LPAs; one for health & welfare decisions, one for personal finances and a third dealing with your business interests. With financial LPAs (personal and business), these documents can also be used whilst you retain mental capacity, under your instruction. In a business context this can be useful, thereby ensuring business continuity.