At Altor Wealth, we often help clients plan for the future—but one critical area is frequently overlooked: what happens to your business if you’re suddenly unable to make decisions?
A Lasting Power of Attorney (LPA) is a legal document that allows a trusted individual to make decisions on your behalf should you lose the capacity to do so. While many understand the value of personal LPAs for financial and health matters, fewer are aware of how essential a Business LPA can be.
Why a Business LPA Matters
Imagine being abroad, in an accident, or unexpectedly incapacitated. Who will authorise payroll, manage loan obligations, or make critical decisions? Without a Business LPA, these responsibilities may fall into legal limbo, exposing your business to significant risks.
Key consequences of not having a Business LPA in place include:
- Frozen bank accounts
- Voided or enforceable contracts
- Regulatory and statutory breaches
- Delays in appointing a deputy, often exceeding six months
Is It Right for Your Business?
A Business LPA can be vital whether you’re a sole trader, partner, or company director. The suitability may depend on your business structure and governing documents like partnership agreements or articles of association. Consulting with legal and financial professionals is crucial to ensure alignment with your overall succession and continuity plans.
Proactive Protection
At Altor Wealth, we believe in proactive planning. A Business LPA should be part of any entrepreneur’s risk management strategy. It’s not just about protecting your enterprise—it’s about preserving your legacy.
Speak to your legal adviser and financial planner to see how a Business LPA fits into your continuity strategy.