Do I Need a Business Lasting Power of Attorney?

You’ve spent years building a successful business. You have loyal employees, satisfied customers, and everything running as it should. But what would happen if you were suddenly unable to make decisions?

What If the Unexpected Happens?

Imagine this scenario: you are the sole Director of your company and, following a serious accident, you are left temporarily unable to make decisions.

In this situation, you would likely be deemed to have lost mental capacity. Without a Lasting Power of Attorney (LPA) in place, an application would need to be made to the Court of Protection to appoint a deputy.

This process can take time—and in the meantime:

• Business bank accounts may be frozen
• Bills cannot be paid
• Staff may be unable to work or be paid
• Insurance could be affected
• Customer relationships may suffer

All of this can put your business at significant risk.

Who Protects Your Interests?

Even if you have other Directors or senior managers who can step in operationally, who is legally authorised to make decisions on your behalf—and more importantly, who is looking after your personal interests in the business?

Understanding Lasting Powers of Attorney

There are two types of Lasting Power of Attorney:

• Health & Welfare LPA – covers decisions about your care and wellbeing
• Property & Financial Affairs LPA – covers your financial matters

The key advantage of a Property & Financial Affairs LPA is its flexibility. You can specify exactly what your attorneys are responsible for.

What Is a Business LPA?

A Business LPA is not a separate legal document, but rather a tailored use of a Property & Financial Affairs LPA.

It allows you to:

• Appoint one person to manage your personal finances
• Appoint another to manage your business interests
• Clearly define what decisions each attorney can make

This ensures the right people are making the right decisions in the right areas.

Why It Matters for Business Owners

For sole Directors, a Business LPA can be critical. Your appointed attorney could:

• Ensure the business continues trading
• Appoint a replacement Director if required
• Oversee finances and contractual obligations
• Arrange for the orderly closure of the business if necessary

Without this in place, your business could quickly face serious disruption.

Getting It Right

Drafting a Business LPA requires careful planning to ensure it reflects your wishes and provides the necessary authority.

At Ad Valorem Estate Planning, we work with experienced legal professionals to ensure your LPA is structured correctly and works exactly as intended.

Speak to Us Today

If you’re a business owner—especially a sole Director—putting a Business LPA in place is one of the most important steps you can take to protect everything you’ve built.

If you’d like to discuss your options, please get in touch and speak to Kevin.

(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk