Business Power of Attorney
A Business LPA, also sometimes known as a Commercial LPA, is a Property and Financial Affairs LPA restricted to ONLY give the attorneys authority over businesses of the donor. It will allow the attorneys to make decisions regarding that business if the donor loses capacity, or alternatively whilst the donor still has capacity.
Why make a Business LPA?
Since the Mental Health (Discrimination) Act 2013 was implemented, it is not possible for a director to be removed by the court if they have mental health concerns, including if they have lost mental capacity, as this would be considered discrimination. By creating a Business LPA in advance, directors can ensure that other people can make decisions on their behalf for the business after they have lost mental capacity.
A person without capacity cannot enter into lawful contracts; sole traders will no longer be able to sell goods or services, and partnerships or companies, could be destabilised.
If a person who is a signatory to a business account loses capacity and does not have a Business LPA in place, the bank will freeze that account. An application would then need to be made to the Court of Protection to remove that person as a signatory. This process can take anything up to 2 years with substantial associated costs.
Speak to us TODAY to ensure your business can continue to operate, even if you cannot.
| Service | Per LPA |
|---|---|
| Business LPA* | £225 |
VAT is not chargeable.
*Our costs exclude the registration fee for your Business Power of Attorney, which is payable directly to the Office of the Public Guardian. This fee is currently £82 per LPA application, but you may be eligible for either an exemption or remission of this fee depending on your circumstances.
These costs are paid in addition to the costs of preparing a Will, if required.