Lasting Power of Attorney (LPA)
Something that is not widely known is that even if you have a well drafted will making things run smoothly after you death isn't so easy. What also needs considering is who will act on your behalf if in later life you lose some capacity.
Lasting Power of Attorney (LPA) Something that is not widely known is that even if you have a well drafted will making things run smoothly after you death isn't so easy. What also needs considering is who will act on your behalf if in later life you lose some capacity. CONTACT US
Why is it now more important than ever to have a commercial or Business Lasting Power of Attorney in place?
Very few businesses consider the consequences of what could happen to their business, should, they or fellow Directors lost mental capacity through accident or illness.
What happens if a director loses capacity? Who is going deal with the banks, pay wages, sign major contracts? All these things could have a detrimental impact on a business if a Director or sole trader no longer has mental capacity.
New legislation has recently been put into place, meaning that a Director of a company can no longer be removed if they have been diagnosed with mental incapacity, anything such as dementia or Alzheimer’s.
What this means is, if you have a Director of a company that has been diagnosed as having mental incapacity, they can carry on their normal business duties, even though their illness can be affecting their judgment with the increased risk that they may seriously be damaging their business.
Who Should Have A Business Lasting Power of Attorney?
As a Director of a company you are required to act within the best interests of the company, this also means that you also have to make provisions and have things in place to cover for any known risks. This also means that should you as a Director of a company are not able to continue to make decisions or carry out your duties as a Director through incapacity, you must ensure that you have adequate measures in place to cover should there ever be a time that someone needs to be called upon to act in your role.
Every Company Director should consider having a Business Lasting Power of Attorney in place.
If you are a sole trader, this is even more vitally important, as if you do not have a Business Lasting Power of Attorney, it may mean that a Court Order needs to be applied for to enable someone to deal with your business assets and wind up or sell your business as you have lost the capacity to do so yourself.
For more information please call Angela Jane on 01604 953130 mobile: 07825 331447 or click here to contact us.