Business owners should consider making tailored lasting powers of attorney (LPAs) for their commercial interests alongside powers for their general affairs.
Typically LPAs are created by people looking ahead to a time when perhaps they cannot manage their affairs because of mental or physical incapacity. They think about who could best deal with their investments, property or health and welfare matters in the event they cannot make such decisions themselves.
In most cases spouses, partners or children are appointed as attorneys. But for the business professional would these be the right people to represent company or business affairs? For example, would running a company be a burden for a spouse, or inappropriate for a child not involved in the company?
You can create more than one property and financial affairs LPA, with different attorney appointments on each, with each power limited to specific types of decision making.
For example, it may be more suitable for a partner in business or professional adviser to be an attorney for your business interests, as they may have more expertise to represent you in such matters. You can decide whether such a person would operate independently of your spouse or children or together with them.
Property and financial affairs LPAs can be used even if the donor (the person who creates the power) has mental capacity. Here they are used by the attorneys at the donor’s direction and this could be very useful for the business owner who has to spend time away from the business, perhaps for a period overseas.
Careful drafting is needed to ensure the two LPAs do not clash and we can advise you on the ways in which LPAs can assist your business and your other general affairs.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.