Have you ever considered what might happen to your business if you were to lose mental capacity?
In this blog post Jessica Bourke considers why Lasting Powers of Attorney are vital documents for all business owners.
What is a Lasting Power of Attorney?
Lasting Powers of Attorney are legal documents that allow your chosen attorneys to make day to day decisions on your behalf in the event that you were to lose mental capacity.
Unfortunately, none of us can guarantee that we will remain physically and mentally capable for the rest of our lives. An incapacitating illness or accident could hit any of us without warning, at any time.
There are two types of Lasting Power of Attorney, one relating to Property & Financial Affairs, the other relating to Health & Welfare.
For business owners, it is crucial to have a Property & Financial Affairs Lasting Power of Attorney in place.
What would happen to your business if you lost mental capacity and were unable to continue in your role?
It can be extremely disruptive to a business one of its owners is unable to make decisions and/or lacks mental capacity. For instance, contracts could become unenforceable; it may be difficult to make payments as accounts may be frozen or you may be unable to act as you are not an authorised account holder or signatory.
Creating a Property & Financial Affairs Lasting Power of Attorney allows the day to day continuation of the business and avoids any unnecessary financial impacts by allowing a trusted individual to step in and make decisions on your behalf. This is particularly important if you are a small business owner as it will allow the business to continue until you recover.
How Ison Harrison can help
At Ison Harrison Solicitors we recently held a seminar addressing these issues. Our expert Wills and Corporate team would be delighted to meet with you or your business partners to discuss options and plan for the future.
To put your Property & Financial Affairs Lasting Power of Attorney in place at Ison Harrison we charge £300 + VAT for a Single Lasting Power of Attorney and £475 + VAT for a Mirror Lasting Power of Attorney (for couples).
If you would like further advice or information, please email or telephone our wills, tax & estate planning team on 01904 917 980 or contact Jessica.bourke@isonharrison.co.uk
