Our Guide to Lasting Powers of Attorney for Your Business Interests
- Lasting Powers of Attorney (‘LPAs’) are formal legal documents which allow you to appoint attorneys to make decisions for you in the event that you are unable to do so for yourself in the future. An LPA is a safeguard which gives you peace of mind that should you in the future, lack mental capacity or are physically unwell then you will have attorneys appointed to deal with your affairs on your behalf.
- Property and Financial LPAs (‘General LPAs’) deal specifically with decisions regarding your assets and financial circumstances.
- Health and Welfare LPAs (‘Health LPAs’) deal only with questions regarding your healthcare and wellbeing.
- Business LPAs are a type of Financial LPA that deal specifically with the assets and financial considerations relating to your business interests. A standard Financial LPA will appoint attorneys who will make decisions about your personal finances and assets and is better suited to your private affairs. A Business LPA will appoint one or two ‘Business Guardians’ who will oversee the running of the business, but will delegate the day-to-day running to other people who will be better placed to carry out those specific functions.
- “Attorneys” are referred to as “Guardians” for the purposes of this Guide.
Why do I need a Business LPA?
If you are a company director, partner or sole trader, then you will have invested a lot of time, money and effort into your business. Have you considered protecting your interests in the event that you are not able to make decisions?
Despite the stereotype that people who lose capacity are elderly and retired, this is not always the case. Nearly 18% of working age people will have mental health problems which affect their ability to make decisions*. Furthermore, incapacity is not only caused by mental illness, but could be caused by physical injury or if you are merely out of the country and not contactable.
If Dementia and/or Alzheimer’s are prevalent in your family then you arguably have an obligation to your business partners and shareholders of your company to make a Business LPA as you owe them a duty of care.
If any of these situations are to occur to you, unless you have appointed a Business Guardian to deal with finances, the cost and disruption to your business could be enormous. For example, the business’ bank account could be frozen which would result in staff, suppliers and loans not being paid. Furthermore, the ability to enter into future contracts will be lost. If you have given a personal guarantee alongside any business loans and the business’ bank account is frozen, your personal assets could be at risk.
Who should I choose as my Business Guardian?
If you did want to appoint a Business Guardian, they should be trustworthy and understand the particular workings and dynamics of your business and how you would like it to be run.
You may wish to appoint more than one Business Guardian to act alongside each other. For example, you may wish for a business partner to work alongside a member of your family. This would ensure that any decisions are scrutinised by a second person. The Business LPA is flexible and can specify whether the Business Guardians must take decisions jointly, whether they can take them independently, or a mixture of both. This enables you to decide how your business can be run in the event that you are not able to.
If you would like, Business LPAs can be used as soon as they are registered with the Office of the Public Guardian and can also be revoked if you retire or sell your business (provided that you still have the capacity to revoke it). Alternatively, the Business LPA can specify that it can only be used if you lose mental capacity (instead of physical capacity).
Why not just let the Court of Protection deal with things?
If you have not put in place a Business LPA (or indeed a General or Health LPA) and lose capacity, then a Deputy will need to be appointed by the Court of Protection, which can take several months to arrange and can also be a costly exercise. During this time, there is a risk that your business may not be able to continue without someone making decisions. Furthermore, you will not have any say in who the Deputy is and how they run your business.
How can we help?
Each business is different. We will take into account the particular considerations of your business and draft a Business LPA which will seek to ensure that if anything does happen to you your business interests will be well looked after.
With recent proposals to grant LPAs online which present an increased risk of fraud, we maintain that the most effective way to draft a suitable Business LPA is through a face-to-face meeting whereby your instructions can be taken and the Business LPA can be tailored to your specific business.
We offer a competitive charging structure for LPAs and our charges include a complete service, certificate provider, registration and free storage in our strong-room for safe keeping and there are no hidden extras.
How are they made?
- We will meet with you and discuss the particular aspects and dynamics of your business. We will get to know you (unless we already do) and we will learn about your business.
- We will provide you with Questionnaires to complete as this will help us to help you!
- After our meeting and completion of the Questionnaire this will provide us with the information to enable us to draft a Business LPA that will suit your business’ needs.
- We will send you draft LPAs for you to consider, amend and for further discussion.
- We will also prepare a General LPA and Health LPA if you decide to compliment your Business LPA.
- We will arrange to see you for your LPA to be signed and witnessed. We will also act as the required Certificate Provider as the forms need verification of your knowledge and understanding of the LPA.
- We will liaise with your Attorneys/Guardians for execution of the documents.
- We will then deal with its registration at the Office of the Public Guardian.
If you would like to learn more and would like to draft any LPAs, whether a Business LPA, General LPA or Health LPA (or all three) please contact Mark Parnall on 01566 772375.
For a single standard Financial or Health LPA £495.00 plus VAT
For both standard Financial & Health LPAs £895.00 plus VAT
If a couple wish to do both types of LPA (four in total) £1595.00 plus VAT
Business LPAs are more complex than standard LPAs so we will require full details from you before we are able to provide a more accurate costs figure.
In addition you need to add on the court registration fee for each LPA of £82.00
* Adult psychiatric morbidity in England (2007), NHS Information Centre for health and social care, University of Leicester
The death knell for ‘kiss and tell’?
Making a will when you retire
Selling your property at auction
Not looking so good - your guide to compensation for botched non-surgical cosmetic procedures
New threshold of seriousness in defamation proceedings
Legal considerations when building a granny annex
Choosing the right person for your power of attorney
Formal Interviews - Do you need legal representation?
Privacy rights and aerial images
Trustees’ duty to give information to beneficiaries
Five problems with a leasehold property
Taking your first commercial lease
Is your organisation protected from employee social media legal risk?
Have you been targeted by negative social media posts?
Farmers be alert when being inspected
Help for House Sellers?
Don’t let your digital assets end up in a digital grave
Valuing an estate for probate
Development proposals and your local authority search
What can you do if your child is injured in a serious accident
NetRights welcomes new protection for social media users
SHOULD I GET A LAWYER FOR A SPEEDING OFFENCE?
Supreme Court recognises that social media is a “casual medium” in libel battle
Choosing the best conveyancer who is right for you
Making a will after a second or subsequent marriage
Option or promotion agreement – which is best for landowners?
Anonymous pub and restaurant online reviews leave a bad taste
Have you had an accident involving a horse?
Help to Buy – beware of some cracks in the structure
Understanding Lasting Powers of Attorney
Changes to Energy Performance Certificate for Landlords
Had a cycling accident? Your route to obtaining compensation
New year, new home: tips to sell your home in the New Year
Tax Planning for your inheritance
Hearing loss: when your employer may be liable
Buying a home for your retirement, five things you need to consider
Farmers plan to diversify after Brexit
Ministers press ahead with probate fee shake-up - reports BBC News
Botched dental treatment? You may be entitled to compensation
Why a Health and Welfare Power of Attorney is a good idea
Will the new charge on building developments in Cornwall affect you?
Energy Performance Certificates – Do They Matter?
HMRC Challenging Stamp Duty Land Tax Payments
Ben Mitchell qualifies as a solicitor
The potential implications of Brexit on employment law
Appointing a guardian for your children
Houses in multiple occupation – new rules from October 2018
New Agriculture Bill published
Will Brexit affect my pension?
Dreaming of a holiday home? Sort out the legals before putting your feet up
Lasting Power of Attorney by Deborah Adams
Settled status after Brexit by Alexis Hager
How to choose an executor to administer your estate when you die
How overage agreements can boost profits from your land
Top tips for first-time buyers
How Could Brexit Affect My Farm?
Wills & Succession in Spain by Deborah Adams
Brexit – an international and local view by Alexis Hager, Litigation
Capital gains tax - important facts for non-residents of the UK
Buying a home: the importance of making sure the seller is entitled to sell
Changing a will after someone has died: it is possible and it could save you money
Your responsibilities when you have people working in your home
Sad passing of Battle of Britain pilot who served with Parnall family member
Considerations when buying a heritage property
Disciplinary proceedings at work: guide for employers
Employers should have a disciplinary process in place, but just following this may not be enough to avoid falling foul of the law and exposing yourself to the risk of an employment tribunal claim.