November 01, 2017
Many people plan for the future by putting in place a Lasting Power of Attorney to protect themselves and their families in the event they become unable to manage their personal affairs.
This is a sensible step and can make life much easier for you and your loved ones should the worst happen.
However, if you run your own business, have you considered who could step into the breach and take your place if you lost the capacity to deal with the day to day running of the business?
When you consider business disaster recovery, you probably think about backing up your data, or having premises you can move to in a hurry in the event your current workplace is out of commission. However, sometimes the disaster can be more personal. A stroke, or a serious accident, could immediately rob you of the mental capacity to run your business, either temporarily or permanently.
This could have serious implications, not only for you and your family, but also for your employees, customers or suppliers if there is no one to, for example, sign cheques or authorise payments.
So, did you know that you can make a Lasting Power of Attorney appointing a trusted person to manage your business affairs should you lose mental capacity? This could also prove useful for business owners who travel abroad and who may not always be immediately contactable in the event an urgent decision needs to be taken.
If you run your business as a sole trader, this could be sufficient to ensure it will continue to run smoothly and is able to continue trading. If you have a partnership or limited company, however, you may also need to check the partnership agreement or articles of association to ensure that you have the right to appoint an attorney.
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