Who will run your business if you,
- Had an accident
- Became mentally incapacitated by a mental or physical condition
Family members, friends or colleagues do not have any financial right to makedecisions on your behalf. Also, key person insurance does not cover running abusiness. As a business owner it is vital you protect the survival of your business by ensuring there issomeone to make important business decisions when you cannot and to keep your businessrunning.
Below are some of the key components that are essential to the continuity of yourbusiness.
- Access to bank accounts
- Loans or overdrafts
- Business orders
- Payment of staff salaries
- Payment of bills
- Cheque signing
- Tax affairs, insurance, and business property
What is a lasting power or attorney?
A lasting power of attorney is an important legal document which allows you to authorise aperson or persons (an attorney) to make decisions on your behalf. LPA’s can beused for personal and business affairs. However, where you wish to consider an LPA forboth personal and business interests you should consider making separate LPA’s dealingwith the different assets.
As a sole trader your business does not have a separate legal entity from you therefore abusiness LPA can be the best way to protect and ensure the continuity of your business.
What happens to my business if I do not have an LPA?
If you are unable to make business decisions and you don’t have an LPA then anapplication to the Court of Protection would be required. The Court will then appointment adeputy to act on your behalf and run your business. The Court process is costly and cantake months during which time your business may be at risk or even cease trading. Also, theCourt when appointing a deputy may not appoint a person that you would have chosen, or itcould be someone who has different ideas to you on how to run your business.
Court of Protection
If needed, we can assist you to apply to the Court of Protection for a deputy to be appointed to deal with a vulnerable person’s business affairs. If you do not have the time or there is no one else available, then one of our lawyers can be appointed as the deputy.
Our lawyers are vastly experienced in Court of Protection matters and the day to day management of the vulnerable person’s affairs
Please feel free to contact us to discuss your matter further