Do you own a business? Is so, you want to make sure that it can continue to run smoothly and successfully, even if you lose the capacity to do the work yourself.

Barry McDonough, a trusts and estates expert from Jackson Lees’ Wills, explains how appointing a lasting power of attorney (LPA) will benefit you and your business.

An LPA gives another individual the legal authority to make decisions surrounding your finances and potential healthcare.

In addition to the management of personal finances, an LPA can also be used in the best interests of a business owner to protect themselves and their business.

Shareholders, partners and sole traders are some of the most common business owners who can benefit from appointing an LPA. It is important for businesses to ask themselves if someone else is able to take over the running of the business and its finances, should they become incapacitated by injury or illness.

Wirral Globe: Jackson Lees will provide you with expert, professional and sensitive legal advice to secure your business.Jackson Lees will provide you with expert, professional and sensitive legal advice to secure your business. (Image: Jackson Lees)

If not, important business operations or decisions may not be possible. This can result in a loss of earnings within the business, which impacts those operating the business and any dependents that rely on that income.

The implications of not appointing a lasting power of attorney could be devastating for any business. In the case of the owner becoming unfit to operate the business without an appointed attorney, an application would need to be made to the Court of Protection to appoint a deputy.

This process could take several months and comes with a financial burden far greater than the cost of putting an LPA in place. During the interim period, the business may suffer with no one in a position to manage its finances and day-to-day operations. Business owners may not be able to rely on family or employees to run the business, as they may not have the legal authority to do so.

The LPA for business is not limited to incapacity, but also benefits business owners who may be out of the country for prolonged periods of time. For owners that travel a lot and struggle to manage certain aspects of their business while they’re away from home, an LPA can be a great solution, as the attorney can act when the owner still has capacity, but is out of the country.

When appointing a lasting power of attorney, it is crucial to choose someone who the business owner trusts and is confident could do the job in the way that they would wish. For this reason, it may be appropriate to appoint two attorneys – one to deal with business affairs, for example an accountant or an employee, and the other for personal finances, such as a family member.

Once in place, the business LPA will allow the attorney to manage the business when needed. It does not affect the owner’s right to continue managing as long as they are able and willing to do so.

Business LPAs should be the cornerstone of an effective business continuity plan. Regardless of health, all business owners should have an LPA in place in order to protect their business and family finances.

If you would like to talk to one of our specialist advisers, you can call us free on 0808 296 3258 or email enquiry@jacksonlees.co.uk. Alternatively, visit our website www.jacksonlees.co.uk.

What Jackson Lees can offer you...

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Liverpool: 0151 909 3146

Heswall: 0151 909 4804

Hoylake: 0151 909 3142

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At Jackson Lees we understand that knowing where you stand is one of the most important things. In cases where things haven’t gone as you’ve expected, we can help you get clarity. We will provide you with expert, professional and sensitive legal advice, helping you deal with a wide range of civil litigations matters including dealing with estates.

Let Jackson Lees make things a little easier for you and your family. Contact our Wills, Trusts & Probate team to book an appointment or to chat through your requirements.  Call us free from either a mobile or landline on 0808 296 3258.