Lasting Power of Attorney for Business
Lasting power of attorney (LPA) documents can provide a crucial safeguard for business owners and directors, allowing you to appoint an attorney to make important decisions on your behalf if you are rendered unable to do so at some point in the future. Seek advice and guidance from JMW's specialist LPA solicitors today to ensure that your business is kept secure in the event that you can no longer manage it.
Why Should I Apply for a Business LPA?
Whether due to health-related issues or an unexpected absence from the UK, the sudden loss of ability to make vital business decisions can potentially be catastrophic for your business and you. An LPA ensures continuity even under unforeseen circumstances, allowing the day-to-day running of the business to carry on, overseen by a trusted individual that you yourself have selected for the role.
It is also essential to consider the Articles of Association, Shareholders Agreement or Partnership Agreement of your business to ensure that an LPA does not contradict the provisions governing the management of the business.
How JMW Can Help
We can help you through the entire process of creating an LPA document to assist in your process of planning for the future. Throughout, we will discuss the various dynamics of your business situation before drawing up a document that provides you with the security and safeguards that you require.
When you contact us, we will hold an initial consultation during which we will inform you on how we will be able to help you and what you can expect from the process. We will work with you to understand your goals and circumstances. Our bespoke service allows you to be as hands-on or off with the process, and we will keep you informed on every aspect of the LPA process or handle the bulk of the legal responsibility for you, so you can focus on other aspects of your life.
JMW regularly helps business owners from sole traders, partnerships and limited company structures understand if an LPA can help them and how to go about organising one. We are familiar with working with high-net-worth clients and we can help you to manage your business affairs and estate effectively, allowing you to feel confident that they are secured and ready for the next stage of your life.
Meet Our Team of Wills Solicitors
Our team offers expert support in setting up Lasting Powers of Attorney for business owners, allowing trusted individuals to manage your business affairs if you are unable to do so.
Why Choose JMW?
Our expert wills, trust and succession planning solicitors have assisted many private and commercial clients to set up personal and business LPAs and we are dedicated to making the process as simple and stress-free as possible. Due to our successes, JMW has been recognised as one of the top law firms in the UK for several years in a row, with 12 of our departments and 33 of our lawyers ranked in the 2021 Chambers & Partners guide.
The team at JMW Solicitors regularly gives seminars on wills, trusts and estate planning, Inheritance Tax and other related topics; we maintain a strong and up-to-date understanding of succession planning laws and the various managerial and financial affairs that a business owner may struggle to deal with when indisposed due to personal reasons. Several of our lawyers are members of the highly-respected Society of Trust and Estate Practitioners (STEP), allowing us an exclusive insight into the developments of this area of law.
FAQs About Business LPAs
- How does a lasting power of attorney work?
A lasting power of attorney (LPA) is a legal document that designates another person or several people as having the authority to make decisions on your behalf in circumstances where you have lost the capacity to do so yourself.
A business LPA is a type of property and financial affairs LPA that specifically applies to the control of a business. This is different to a personal LPA that handles personal assets, though the two can often cross into similar territory. A business LPA enables you to choose a suitably qualified person to take over your functions within the business, whether your incapacity be permanent or temporary.
To make an LPA, you must be over the age of 18 and have the sufficient mental capacity to make the document. It is not possible to make an LPA on another person’s behalf, so this must be done personally.
- Who can I appoint as my attorney?
All sorts of people can be appointed as an attorney under an LPA, including:
- Your spouse or civil partner
- Your children (as long as they are over 18)
- A family member
- A close friend
- An accountant
- A solicitor
- A business partner
You should look to appoint a business attorney who is trustworthy, and who understands the specific dynamics of your business and how you would like it to be run. It is possible to appoint more than one attorney, and you can specify in your LPA whether you would like them to take decisions jointly or independently.
- What kind of affairs can my attorney handle?
As your business attorney, the individuals named in your LPA will be able to take responsibility for a number of different tasks, including:
- Accessing business bank accounts and dealing with financial matters
- Paying staff
- Handling tax affairs
- Ensuring contracts are upheld
- Addressing regulatory requirements
You can place restrictions within the LPA document to limit what your attorney can do on your behalf and offer written guidance to your attorneys as part of the LPA process.
- Who is a business LPA suitable for?
Business LPAs are suitable in the following cases:
- For sole traders and self-employed people, who are not considered to be separate legal entities to their businesses.
- A partner within a partnership, in cases where a partnership agreement does not include provisions for a partner’s incapacitation.
- A director of a company, if the company’s articles of association do not prohibit the delegation of their responsibilities, or terminate their appointment in case of incapacitation.
- What is the difference between a Lasting Power of Attorney and a Court of Protection deputyship?
LPAs allow an individual to nominate another to make legal and financial decisions on their behalf in case of future incapacitation, while Court of Protection deputyship is used when the person in question has already become incapacitated, meaning another person has to request the ability to handle their affairs from the court.
The latter can be a costly and time-consuming process, and could leave your business without leadership for several months. It also prevents you from having a say in choosing the deputy personally, which is why business LPAs are generally regarded as preferable.
- Can I use the same attorney for my personal LPA and business LPA?
It is theoretically possible to do so, but in many cases, this can lead to problems relating to conflicts of interest, meaning this is an option that should be considered with caution.
Talk to Us
To speak to an experienced legal expert about setting up a business LPA, call JMW Solicitors on 0345 872 6666. You can also fill out our online enquiry form to request a call back.
