All business owners should consider a Lasting Power of Attorney (LPA) as the final piece of the business protection jigsaw puzzle.
Have you considered what might happen to your business if you:
• lost your mental capacity through illness or injury?
• were stranded abroad because of delay or extreme weather conditions?
Who would take over the running of the business on your behalf to:
• sign contracts?
• pay salaries and suppliers?
• write cheque?
• make the important day-to-day decisions to keep the business going?
Even if your bank account is held jointly with your spouse, it can be frozen until a Deputyship Order is produced by the Court. Business accounts can also be frozen, even where these are held jointly in the names of business partners or directors. How would your business cope with no funds? Many businesses in these circumstances fail.
If you suddenly lose mental capacity and haven’t made a Business LPA, it may become necessary to make an application to the Court of Protection for the appointment of a deputy to act on your behalf. The process can be expensive, and there’s no guarantee that the Court of Protection will choose someone who you would have chosen. It could also take more than six months before a deputy is appointed, during which time your business may be vulnerable and at risk.
The Business LPA and lack of capacity…
Most businesses have a Key Person Insurance Policy and crisis management plans in place, but the issue of lack of capacity is often overlooked. You might think the options are obvious, but there is no automatic legal right to deal with another person’s financial affairs. Don’t assume that a family member or a business colleague will gain the authority to make these decisions on your behalf – this assumption could leave your business exposed to risk.
To protect your interests, and those of your business, you should consider making a Business LPA.
Having a Business LPA in place allows someone that you trust – someone who understands your business – to take over the day-to-day affairs as soon as they are needed. Your attorney might be given the power to pay suppliers and staff, access and manage bank accounts, invest assets, handle tax matters and enter into contracts. Of course, you can limit your attorney’s power, but you need to ensure that the company can continue to operate with any limits in place.
The aim of all business owners is to make their business a success and to provide for their families and their loved ones. You work very hard, commit time and money to your business and have employees and suppliers who are depending on you. You have families who need your financial support and security.
It is natural to hope you will never need a Lasting Power of Attorney but why take the chance?
A Business LPA should be an essential element of your business continuity plan, and the cost of setting one up is a small price to pay for the continuing success of the business you have worked so hard to build. It’s a one-off cost as well (as long as you don’t change your mind about who you have appointed as your attorney).
A Business LPA is a type of ‘insurance’ that all business owners should have, and it truly is the final piece of the business protection jigsaw puzzle!
Our fee to arrange a Business LPA for you (including registration of the document with the Office of the Public Guardian – so that is ready to be used immediately should it be necessary) is £175 (no VAT to pay). It’s a tax-deductible expense for your company, and the only additional fee to pay will be £82 to cover the Office of the Public Guardian fee.
Contact A.R.K. Lasting Powers & Wills today for a chat about how easy it is for us to assist you with making this document that could be vital for your business. It can be arranged at a face to face meeting, or by phone/email if you prefer. Call us on 01438 746977 or email email@example.com.