If you are a sole trader, a partner or a company director have you considered what would happen to your business in your absence?
Many business owners take out a Key Person Insurance Policy, however they do not consider another kind of insurance policy; a Lasting Power of Attorney (LPA).
Why should you have an LPA?
It is important for a business owner to ensure their business can operate in the event they become incapacitated, hospitalised, or even if they are out of the country. If there aren’t any arrangements in place for another individual to have the authority to pay bills or make day-to-day decisions relating to the running of the business, there is a possibility the business may fail.
By creating an LPA for property and financial affairs, a business owner can nominate one or more individuals (attorneys) to act on their behalf in the event they are unable to act.
If a business owner loses capacity and does not have a valid LPA in place, there is every possibility that a third party may have to apply to the Court for a Deputyship Order in order to manage the business owner’s finances on their behalf. This process is extremely time-consuming and expensive, and it can be avoided by creating a Lasting Power of Attorney now.
For more information relating to Lasting Powers Attorney or Deputyship Orders, please contact the Wills and Probate team on 01432 278 179 who will be happy to discuss your requirements.