Q: My wife and I made Lasting Power of Attorneys a few years ago. Since then, I have started my own business which has proved successful. My wife is not involved in the business, and my son is too young to join me, but I hope he will eventually take over. Can I update my LPA to add the appointment of another attorney who can take responsibility for paying the company’s bills, salaries etc, and keep the business going for my family if anything should unexpectedly happen to me?
A: It is possible to have an LPA which appoints a specified attorney or attorneys to handle your personal affairs and others to handle your business affairs. However, this can cause confusion, and your LPA application may be rejected by the Office of the Public Guardian. There is, however, such a thing as a business LPA, which you could make in addition to your personal LPAs.
Whilst articles of association usually provide for the termination of a director’s appointment if they lose capacity or die, it is unlikely that this would happen in your case as you are sole director so there would be no one to run the company. A business LPA would therefore be your best option, and it would keep your personal affairs separate from your business affairs.
You are absolutely right to be making such provisions now, as without something in place an application would need to be made to the Court of Protection for the appointment of a deputy to act on your behalf if you became incapacitated. Aside from the time this would take, and the expense, both of which could put your business at risk and cause your wife and others anxiety, no one would have any say in who was appointed, or how they might handle matters. Making a business LPA will ensure continuity in the management of your business and act as part of your crisis management strategy.
This question has been answered by Victoria Wilson, a Partner with GHP Legal. If you would like to speak to someone about this or any other legal matter, please visit our website www.ghplegal.com and use the contact us form, or call us on: Wrexham 01978 291456, Llangollen 01978 860313, Oswestry 01691 659194
