Lasting Powers of Attorney are versatile documents that can save your friends, family and colleagues a world of hassle and disappointment. If you were ever to become incapacitated or could no longer reliably make your own decisions, you’d need someone to make decisions for you. Unfortunately, nobody can legally do that unless you have an LPA.
In another article, I discussed Lasting Powers of Attorney with regards to health decisions. These apply to everybody; we simply don’t know what could happen to us, and need somebody to look after our health. However, what about business owners?
Let’s picture the scene:
Bob owns a manufacturing business. It’s very successful, and Bob is pleased, but he knows that he’ll have a lot to leave behind for his family when he passes away. He’s not an old man- he’s in his 40s- but he realises it’s important to plan ahead, so he makes a Will saying that when he dies, the sum of his estate should go to his wife. He creates a Trust to protect his assets for his children. He’s created an LPA naming his friend Jerry as his attorney. Bob thinks all is well; if anything happens to him, Jerry can make important decisions for him, and his assets are protected.
One day, Bob is in an accident. He’s incapacitated, and doctors fear he’ll be in that state for a while. The Lasting Power of Attorney is registered; Jerry can make decisions regarding Bob’s health. When he tries to make decisions regarding the business, however, he finds this is not allowed.
This is because Jerry is Bob’s health and welfare attorney; when it comes to his business, Bob has employees he’s responsible for, suppliers he needs to pay, stock he needs to maintain. That’s a lot of responsibilities, and even if Bob’s had a discussion with his employees about who would take over if he couldn’t make decisions anymore, the authorities don’t know that. The right LPA is the only way for Bob to truly safeguard the business.
So, now we know how important it is to ensure you’ve made the right LPA for your circumstances. If you’re a business owner, it’s vital that you make an LPA to protect your financial assets.
Accord Legal Services create LPAs for all people with a range of different needs and circumstances. Speak to us today on 01744 807048 and find out what we can do for you.