Here, Ian Macara, Partner at Bennett Griffin Solicitors, provides you with the answers you need…
Why is it important for business owners to have a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a document made by an individual that appoints another person to act on their behalf and in their best interests.
Having a LPA in place will help to protect your business against the threat of disruption and enable continuity if you became incapacitated. Making informed choices now is a far less expensive option than trying to make decisions in the middle of a crisis; when the options may be limited.
You need to ask yourself what would happen if you were unable to authorise payments or sign off contracts. How would staff wages and insurances be paid? How would stock be bought? Who would have the authority to recruit key staff to fulfil projects?
It’s reassuring to know that everything is covered by your LPA; even if it’s never needed.
How do I set up a Lasting Power of Attorney?
The actual process is straightforward but I would always recommend you consult a specialist advisor who understands the nature of your business to ensure that everything is properly considered.
It’s fairly typical for a business owner to have three LPAs in place covering their personal affairs, their business interests and their health and welfare. It’s quite possible, and often preferable, for different Attorneys to be appointed to take on different roles and the LPA needs to be carefully drafted to ensure that the scope of their remit is clear.
How much does it cost?
It really does depend on the complexity of the LPA, but if you choose a regulated advisor you should expect to pay around £500-£1,000 plus VAT.