Preparing For The Future Whilst We Are Fit And Well

No one likes to think about what would happen if we lost capacity unexpectedly. Sadly, the unexpected does happen which can cause problems for you and your loved ones. It is therefore important to plan ahead in order to ensure things run smoothly should this unfortunate situation arise.

By making a Lasting Power of Attorney (LPA) you are able to choose someone to look after your affairs, should you become incapable of doing so yourself. This person is known as an Attorney. You can choose to appoint a friend, relative or a professional to act as your Attorney. An Attorney is granted authority to deal with your property and financial decisions and/or your health and welfare. The role carries considerable responsibility and as such it is crucial your Attorney is someone you trust to act in your best interests.

Unfortunately, we find that many of our clients fail to plan ahead whilst they are fit and well and only start thinking about a LPA when it is too late.

If a person has lost capacity and does not have a LPA in place, matters become more difficult. In this instance, the only option available is to apply to the Court of Protection to be appointed as a Deputy. This can be a very long and expensive process, whereas a LPA can be prepared quickly and is considerably cheaper.

Our team believe that preparing a LPA is equally as important as preparing a Will. Not only does it allow you to maintain control over who makes decisions on your behalf, it can provide peace of mind and stability for you and your loved ones.

Lasting Powers of Attorney For Business People.

This is a special Lasting Power of Attorney (LPA) needed for a business man or woman in relation to his/her property and affairs as opposed to private property and affairs.

The answer depends on the business.  A sole trader for example may not need anything but a general authority to his Attorneys under an LPA.

However, the position is not the same in relation to partners in a business nor in relation to a shareholder and director in a company such as a family company.

In a partnership the partnership agreement should be considered and may need amendment or indeed the creation of one if there is not one in existence.  If not, it is possible that under the Partnership Act 1890 the partnership could be deemed dissolved where one partner is incapable of performing his part of the partnership contract.

In relation to a family company where the donor is the effective owner and director the position is that the director’s duties cannot be delegated under an LPA unless the Articles of Association of that company makes special provision for this. It is most likely that the Articles of Association of a company will not allow such delegation and the position should be checked and the Articles of Association amended if necessary.

It is advisable for all persons with business interests to have an LPA covering their property and financial affairs, but it should not be assumed that a general authority LPA will satisfy particular circumstances of the donor.