BUSINESS LASTING POWERS OF ATTORNEY

 

What is a Business LPA?

An LPA stands for Lasting Power of Attorney. A Lasting Power of Attorney appoints an individual to manage certain elements of your personal affairs in the event you lose the mental capacity to do so yourself, while a Business LPA grants a person you trust the authority to manage your business affairs.

It is important for business owners to think about what would happen to their business should they lose their capacity to manage it, which could be temporary or permanent. Without a business LPA, your business could be exposed to unnecessary risk should you become incapacitated, through a lack of clarity around who should assume control. 

What is a Business LPA?

Why put in place a Business LPA?

There are two main reasons why you should consider putting in place an LPA for your business:

  1. To protect your family from a drop in income should you lose mental capacity.

  2. To ensure the continuity of your business should you lose the capacity to make business decisions.

Registering Your LPA

Once prepared, your Business LPA needs to be registered with the Office of the Public Guardian (OPG), for which there is a fee of £82. A Business LPA remains invalid until registered with the OPG.

Who Should Consider Creating a Business LPA?

  1. Sole Trader

  2. Company Directors

  3. Partners or a Partnership

Why  Business LPA?

Which Attorney Should I Appoint?

It is important to select an attorney whom you can trust and have confidence in to carry out the job effectively. This should be someone who is competent in handling business affairs.

What Happens in the Absence of a Business LPA?

 

If no attorney has been appointed, then an application would need to be made to the Court of Protection to appoint a deputy. This process could take up to 9 months and there is no guarantee that it would be successful. The consequences of such a delay could have crippling effects on the longevity of your business.

Which Attorney Should I appoint

How Can We Help?

K2 Law has expertise in preparing and registering Business LPAs. As part of our Estate Planning services, we encourage our clients to plan for their future.

 

Contact us today to discuss your business LPA with us.

How Can We Help

Contact Us

0800 041 8509

169 Piccadilly,  Mayfair,  London, W1J 9EH

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