This makes it clear to your attorneys where the authority starts and ends. Alternatively,
you could one LPA and say nothing. Providing the LPA doesn’t contain any instructions
that restrict the attorney’s power to only personal finances then they will be able to deal
with the donor’s personal and business affairs.
Who should act as an attorney in your LPA? You may think that you can rely on friends or
family but the truth is that they may not have the authority to do so. Business partners do
not automatically have this right unless the agreement says otherwise.
A family member or friend may not have the expertise knowledge to continue making
business decisions, so you can either appoint a professional (which will have an associated
fee) or even your business partner if you feel this is the right decision. Effectively, it needs
to be someone you trust, understands your business and shares the same or similar
business goals.
It is important that the LPA is
registered while the donor still has
the mental capacity to do so.
What happens if no LPA has been put in place for your business?
Quite simply, if you own a business, lose capacity and there is no LPA in place, it is likely
the bank will freeze the business accounts which could be disastrous for your business.
It also means the only way forward would be for someone on your behalf to make an
application to the Court of Protection and apply for a Deputyship Order. This can take
up to 6 months and can be very expensive. This then has the snowball impact of no-one
being able to make crucial business decisions during this time frame – how will staff be
paid, stock purchased?
Capacity can be lost at any time and could be due to either an accident, a stroke or a
deteriorating condition so please don’t wait until it’s too late or your business could be
severely disrupted.
If you would like to find out more information regarding making a Lasting Power of
Attorney for your business, please contact one of our members.
Remember:
All members will provide up-to-date
advice in line with current legislation. All members must adhere to our strict
Code of Practice.
All members must complete
compulsory annual CPD. All members must carry at least £2m
of Professional Indemnity Insurance.
If you ever have doubts about a Society member or would like some more
information about the work the Society does, please give us a call on 01522 687888
or email us at [email protected]
the society of will writers
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