It’s vitally important that you protect your personal and business interests by planning for any eventuality that may arise. Lasting Powers of Attorney can help give you that peace of mind.
If you are running a company, or are employed in any capacity where you have a vote or are involved in any decision making, it’s important for the business and yourself that the appropriate steps are taken to ensure things can continue as normally as possible if you become unable to carry out your obligations.
It’s very easy to get caught out if these necessary provisions aren’t put in place and we thought it would be a valuable insight to highlight a recent conversation David had with a potential client who was seeking answers to some pertinent questions which may be of interest to you.
Q: My business partner and I have been told we need to put Lasting Powers of Attorney in place – is that right?
Lasting Powers of Attorney will ensure your business will continue to operate if you or your business partner are unable to function as normal.
Q: What are the different types of Powers of Attorney and what do they mean?
There are three types that people may be familiar with:
- Ordinary Power of Attorney
- Enduring Power of Attorney
- Lasting Power of Attorney
Ordinary Power of Attorney (OPA) is a limited arrangement allowing a nominated person to make decisions on your behalf and is the ideal scenario for short-term arrangements like extended trips abroad or recovering from injury. It can’t be used in the case of someone who has lost their mental capacity.
Enduring Power of Attorney (EPA) was replaced by Lasting Power of Attorney (LPA) in 2007. Those set up prior to that date can still be used in controlling property and financial affairs of someone who has become incapacitated.
Q: How does Lasting Power of Attorney work?
There are two types of LPA, one covering health and welfare and one property and financial affairs. You choose one or more people to look after your affairs at a time when you are no longer physically or mentally able to do so.
Any business owner, director, shareholder, or member of a partnership who have voting rights should be taking out an LPA.
Q: Who can I nominate
It is usually a spouse or other family member who have full mental capacity at the time the LPA is drawn up.
They must be over 18 years of age and, in the case of looking after business interests, would need to have a good understanding of the firm, how it operates and the ability to make the correct informed decisions for the good of the company.
Q: What happens if we don’t have a Lasting Power of Attorney?
The business could be placed in jeopardy and be unable to function.
Accounts could be frozen, wages and bills may not get paid, new contracts may be missed – the general continuity of management could be broken.
It’s also worth considering acquiring a Business Persons Will for complete peace of mind.
For expert advice and guidance on how we can help you, call us on 01952 305105 or 07786 548025 or email firstname.lastname@example.org