You may have considered what will happen to your business after your death, but have you considered what would happen if you were unable to make decisions about your business during your lifetime?
You may not be in a position to make decisions for a number of reasons, whether that be because of a medical condition that leaves you incapacitated, or because you are abroad.
A Lasting Power of Attorney (LPA) is an important legal document which authorises your attorneys to make certain decisions on your behalf should you become unwell or lose the capacity to make the decision yourself.
It may not be appropriate for your appointed attorneys under a personal property and financial affairs LPA to be the same people that make decisions about your business interests.
It is possible to make a separate property and financial affairs LPA which is specific to your business.
A business LPA is an effective way of allowing someone that understands the needs of your business to make decisions on your behalf.
Sole traders often run specialist and technical businesses. It might be wrong to assume that a family member could step in and manage the business on your behalf.
A business LPA can ensure the continuity of your business, especially if the right person has been appointed as your attorney.
If your business is a partnership then in the absence of a properly drafted Partnership Agreement that covers issues such as incapacity, then it may be impossible to make decisions without a business LPA in place.
If you own shares in a company, you can provide for situations such as loss of capacity in your Articles of Association. You can also appoint other shareholders in your company as your attorney to make decisions regarding your shares in the circumstance that you are unable to make the decision yourself.
It is important to seek legal advice in relation to the preparation of your LPAs, particularly if they need to work in line with Partnership Agreements and a company’s Articles of Association. Contact us today at Walsh West Estates and Probate Lawyers so we can help you with planning for your business for when you need help.
_______________________
For advice call our team on
0203 488 7503, 01992 236 110 or contact us by email at
legal@walshwestlaw.com or via our website www.walshwestcca.com
Comments