As a business owner, partner or company director, your input into your business is vital to its continued success. It is therefore vital to think about what would happen if you ever became unable to manage your own business affairs due to ill health or mental incapacity.
At Pengelly and Rylands, our expert lifetime planning lawyers in Tenterden can help you put in place strong legal measures to ensure your business can operate effectively and stays protected if you ever lose the ability to take an active role in its management.
Creating a Business Lasting Power of Attorney allows you to nominate a trusted person or persons to make important decisions about your business affairs for you if you ever become unable to do so yourself. We can advise you on how this works, who would make a suitable attorney and draft the necessary documentation for you.
Our team have been dealing with these matters for many years. We can ensure your LPA is drafted effectively, giving your attorney or attorneys the legal authority they need, while making sure there are not able to overreach their authority and make decisions you would be unhappy with.
We can assist with creating a separate Lasting Power of Attorney covering your personal financial affairs and/or health and welfare needs.
Book a fixed cost initial consultation with our Business LPA solicitors in Tenterden
To arrange an initial fixed cost appointment with our Business LPA solicitors, please call us on 01580 762248 or use our simple contact form and we will get back to you quickly.
Pengelly & Rylands Solicitors is now incorporated by Hatten Wyatt, meaning you can also access our will writing expertise through local offices in Maidstone, Gravesend, Chatham and Tonbridge.
We can also offer meetings by Skype for clients who have to travel extensively or who now live abroad as well as meetings at your home or place of business if required.
How we can help you with business LPAs
LPAs for sole traders
For sole traders, you are your business, so you will need someone else who can step up to deal with your business if you become unable to do so. This can include having access to your business bank account to pay wages, cover supplier invoices and other costs, as well as deciding whether to sell the business.
LPAs for business partners
The terms of a Partnership Agreement will often set out what should happen if one partner loses mental capacity. If this is the case, you may not need a Business LPA. However, if your Partnership Agreement does not cover this or you are concerned about whether this best protects your interests, it is always a good idea to seek expert professional advice.
LPAs for company directors
A company’s Articles of Association will usually allow for the termination of a director if they lose mental capacity. However, if you are the company’s sole director, you may need a Business LPA to make sure there is someone in place to run the company should you one day cease to be able to do so.
Advice for attorneys acting under a Business LPA
If you are acting for someone under a Business Lasting Power of Attorney, it is essential to get specialist legal advice to make sure you are meeting your obligations and that the decisions you make are in the best interests of the business.
We can provide experienced, expert advice for attorneys, giving you confidence that you are making the right choices and that you are fulfilling all of the legal requirements of this challenging role.
Business Lasting Power of Attorney FAQs
What is a Business Lasting Power of Attorney?
An LPA is a legal document which allows the person who makes it (the donor) to nominate one or more trusted people (the attorney or attorneys) to make decisions about their affairs for them in the event the donor ever loses the capacity to do so themselves.
There are two types of LPA:
Health and Welfare LPAs – covering decisions about the donor’s medical care, whether they should be placed into a care home and their day-to-day personal care.
Property and Financial Affairs LPAs – covering decisions about the donor’s home and financial affairs.
A Business Lasting Power of Attorney or ‘Business LPA’ is a type of Property and Financial Affairs LPA that specifically deals with decisions about a person’s business interests.
Why do I need a Lasting Power of Attorney for my business?
Making a Business LPA allows you to nominate someone to take over handling decisions about your business should you become unable to do so yourself. This can ensure your business continues to run smoothly and does not fail or lose value due to your incapacity.
A Business LPA can also be used if you need someone to carry out business for you abroad or in the UK while you are out of the country.
What happens if I don’t make a Business LPA?
If you become unable to make decisions about your business e.g. due to a brain injury or dementia, this could leave your business unable to function properly on a day-to-day basis.
In these cases, it is likely that your loved ones will need to apply to the Court of Protection to become your Deputy. This will allow them the legal authority to make decisions about your business.
The process of applying to become a Court of Protection deputy can be lengthy and expensive, however, often taking around 6 months. During this time your business could suffer serious damage. If you do not make a Business LPA, you will also have no control over who applies to become your Deputy and potentially ends up with control of your business.
Do I need separate LPAs for my business and personal affairs?
You can make one LPA to cover both personal and business affairs, however, it is usually better to make separate LPAs to avoid any conflicts of interest.
Why choose Pengelly & Rylands for your Business Lasting Power of Attorney?
With many years of experience advising business owners, partners and directors on their legal affairs, we can make it clear whether a Business LPA is suitable for your needs and expertly guide you through preparing the necessary documentation.
Thanks to our combination of seasoned legal expertise and business acumen, we can make sure any measures you put in place reflect the best interests of you and your business, protecting your hard work and investment for the future.
We can also advise on making Lasting Powers of Attorney for your personal affairs if required.
Get in touch with our Business LPA solicitors in Tenterden
To arrange an initial fixed cost appointment with our Business LPA solicitors, please call us on 01580 762248 or use our simple contact form and we will get back to your quickly.
Pengelly & Rylands Solicitors is now incorporated by Hatten Wyatt, meaning you can also access our will writing expertise through local offices in Maidstone, Gravesen, Chatham and Tonbridge.
We can also offer meetings by Skype for clients who have to travel extensively or who now live abroad as well as meetings at your home or place of business if required.