Five reasons why you should make a business LPA

Managing a business, however big or small, can be challenging at the best of times. Imagine what would happen if you became unable to act upon or make decisions in relation to your business because of practical reasons or due to a loss of capacity. Below are five reasons why you should make a business Lasting Power of Attorney (LPA):

1. The LPA will allow people to make decisions or action certain business functions if you are unable to do so, for example, if you become mentally incapacitated, have an accident or are simply away on holiday.

2. Whilst a business LPA cannot transfer directorial responsibilities, it allows a business to continue to operate or for business plans to be followed through.

3. If you do not have a business LPA in place, your business operations could come to a halt or actions could be delayed to the detriment of you and the business.

4. If you lose capacity and do not have an LPA in place, no-one will have the legal power to assist you and this may cause difficulties in running the business.

5. If you were unable to make decisions about the business and do not have an LPA, the appropriate people would need to make an application for a deputyship order which is both a lengthy and expensive process.

It is extremely important that you seek advice about future planning to protect your business. Therefore we strongly recommended that all business owners, however big or small, consider putting in place an LPA whilst you have mental capacity.