Future proofing the family business – don’t overlook the LPA

An often overlooked and significant tool, is Lasting Powers of Attorney. These can prove an essential element in ensuring your business is prepared for the future.

Key questions such as; What would happen if a family member lost their mental capacity in the future, rendering them unable to make key and important decision for your business? Must be answered as well as: What plans do you have in place? If any?

Who are they relevant to?

Everyone! Most people understand the importance in creating a Will, and this is a necessary part of the process to protect your family business, however relatively few people realise and appreciate the importance of ensuring a Lasting Power of Attorney (LPA) has been considered.

What is an LPA?

An LPA is a document by which you appoint one or more people, known as your attorney(s) to make decisions on your behalf in general.

The use of LPA is multifaceted in the sense that it can be implemented but still used to your advantage whilst you have the mental capacity to make the important decisions. Mental capacity can be lost in many ways, sometimes happening without warning or without the individual realising, whilst others around them are becoming increasingly aware.

Have you considered the implications for your business if you became incapable of making the important day-to-day decisions? What would happen to your assets and the future wellbeing of your business? Do you really want to make yourself, your family and your business vulnerable?

Why should you have an LPA?

An LPA is an extremely useful safeguard and ‘Plan B’ in case something happens which means that you lose mental capacity to manage your affairs – whether business or personal. Making an LPA enables you to plan how your financial affairs, health and wellbeing will be looked after if you are no longer able to make decisions for yourself and for your business.

Without an LPA you would have no control as to who takes over the making of major decisions in both your work and personal life. Consider this; who would vote on a dividend or sale of your business? Major decisions could affect your family if you have not put in place the proper safeguards.

To discuss more about putting an LPA in place to protect you, your family and your business call 01243 216900 or email info@legalmatters.co.uk

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