Aiker for Business
Running a successful business is a complex affair, and should always include planning for every contingency – including what would happen if you should die, or if you’re unable to make decisions through ill health or incapacity. Without the right protection in place, your business could literally be paralysed.
At Aiker we can offer a range of specialist help to create a complete continuity and crisis management plan specifically focused on your business interests, as well as more general business services. Our expertise spans Aiker Wills & Trusts for estate planning, trusts and LPAs, SRA-regulated law firm Aiker Legal for legal structuring, agreements and professional executorship, FCA-regulated financial specialists Ellsworth Associates for protection and financial planning and a number of Chartered Tax Adviser partners for inheritance and strategic tax planning.
Business Lasting Power of Attorney
If you’re a business owner and were unable to make decisions – whether it’s through being abroad on holiday or business, having an accident or a medical condition or treatment that meant you were incapacitated – who would authorise payments, sign cheques, service a business loan or pay salaries?
Unfortunately, many businesses don’t make provision for such a situation – but a Business Lasting Power of Attorney (LPA) can easily avoid all those potential problems.
An LPA is a legal document that allows you to appoint someone to act on your behalf if you can’t do so – and a Business LPA deals specifically with assets and financial matters relating to your business.
The person you appoint needs to be someone you trust, as they can be given the power to:
- Pay suppliers
- Sign contracts
- Manage company accounts and payroll
- Make key decisions
- Sell or merge the business
While a Business LPA works well in most cases, it’s also important to consider the type of business you have.
Sole traders
As a sole trader, your business will not only rely heavily on you but also have a simpler legal structure in place – so a Business LPA will be very effective in keeping your business going if you can’t make decisions.
Business partners
If you’re in partnership with others, you’ll need to check the partnership agreement to see if it already contains provision for one of the partners being unable to carry out their duties. If so, a Business LPA may not be needed – but if you’re at all unsure that it offers the necessary protection, seek legal advice.
Company directors
If you’re one of a number of directors, you should check the company’s articles of association. Sometimes they specify that a director who loses capacity has their appointment terminated – but if not, a Business LPA may prove useful if it’s just a temporary incapacity or absence, or if you want to preserve your decision-making rights within the company. In either of these cases, seek advice first. If you’re the sole director of a small company there would be effectively no-one left to run the company, so a Business LPA would prove invaluable.
What happens without a Business LPA?
If you become incapacitated without one in place, the Court of Protection has the authority to appoint a deputy to make decisions on your affairs – but this may not be who you would have chosen. Next of kin can also apply to appoint a deputy, but it’s not only more expensive than having an LPA but can also take up to a year to be approved – by which time, your business might have ceased trading, removed you as a director or shareholder, or had its bank accounts frozen.
A Business Lasting Power of Attorney forms a key part of any business continuity plan, and is easy to put in place. We can discuss the options with you, to make sure you have what’s right for your business.
Simply contact us to arrange a face-to-face visit.
Talk to your Aiker Legacy Adviser
Arrange a home visit now to discuss your current situation, and which options might suit you best, and how regular reviews can help you be sure your legacy isn’t at risk. The whole process is easy, and starts by simply giving us your details.