Why do I need a Lasting Power of Attorney?

It’s never easy to think about what might happen to your family or business if you are no longer able to work due to a serious illness
or injury.

But you can ensure that things continue to be carried out on your behalf by putting a legal document in place, known as a Lasting Power of Attorney.

It may not be something any of us want to think about, but it’s really important to get things prepared in case you are struck down by something that affects your mental capacity.

It could happen suddenly and without warning – and if you are a business owner, it could have serious repercussions for your livelihood.

What legal documents are in place to protect your business if you are suddenly unable to work for a period of time?

Indeed, you need someone to deal with your affairs whether it is a short absence, or a longer-term change of circumstances, perhaps in the case of Alzheimer’s, Dementia or Parkinson’s Disease.

There may also be occasions where you are physically incapable of running your business, through something as common as the flu or a broken bone, or even if you are abroad or on holiday and are unable to get to a particular place to sign a contract in time.

The legal answer to these problems is a Lasting Power of Attorney (LPA), which can either cover just your business affairs, or both your personal and business lives. It is common practice to create one LPA for your personal affairs and one in relation to your business.

Many people think a business colleague or spouse will automatically be able to take over should you suddenly become incapable of administering your affairs, but that isn’t the case and, if you haven’t appointed an attorney, the disruption to a business could be substantial.

It may not be possible to access bank accounts to pay wages or authorise insurance renewals, potentially affecting the day-to-day running of the business severely.

You can choose whoever you wish to be your attorney, provided they are over 18 but it’s important to think carefully about who you appoint. It needs to be someone you trust to make these important decisions for you and is capable of carrying them out.

Your attorney must be reliable and have the skills to fulfil the role. You can choose more than one attorney if you wish.

Taking out an LPA is something many people don’t think about, or leave it until it may be too late and are overtaken by events. But by planning your affairs while still able, you will have the peace of mind of knowing that everything is in good hands should the worst happen.