Lasting Powers of Attorney (LPAs) in their present form have been around since October 2007. An LPA allows an individual to have peace of mind that their personal property and finances, and their health and welfare will be dealt with by those they trust if they ever lost capacity through an accident, illness, or dementia.
By Elizabeth Byrne, wills and estate planning solicitor, Napthens.However, a practical question we often ask our business clients is: who would actually deal with your business – especially if your spouse or family are not actively involved?
Depending upon your business model, the obvious choice for an Attorney may be a trusted fellow company director or partner, but careful thought must be given before appointing anyone.
Consider the situation where the proposed Attorney is also a director and a shareholder. When the Attorney exercises your voting rights, could this cause problems with decisions made?
Creating a separate Business Lasting Power of Attorney will save time and heartache. It is also tax deductible, as it relates exclusively to your business. I would recommend considering an LPA as part of your business planning process.
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