Before I answer that, I feel we should ask a different question and that is “do I need a Lasting Power of Attorney at all?”
That one is simple to answer and that is “YES OF COURSE!”.
Mentally incapacity is so often just thought of as dementia and Alzheimer’s disease, but of course it can be relevant to any age through strokes, car accidents, sporting accidents, household accidents, operations that go wrong – to name a few.
Everyone who has assets needs a Property and Finance Lasting Power of Attorney (LPA). If you were to lose your mental capacity then any asset in your sole name is now locked, as you are the only person who is allowed access to it. Even joint assets could be frozen as when the bank or third party finds out you are now vulnerable, they have a duty to protect that asset and hence lock it from everyone, even the other joint account holders.
So that will include your business bank account, even though you may have other signatories. Hence, how will your staff be paid, or your services or suppliers? How long would your business last?
So, you have established that you require a Property and Finance LPA which can be used for the business, but do you need a specific business LPA? This depends on who you wish to run your business on your behalf. If the attorneys you have named on your personal Property and Finance LPA are the same people that you want to manage your business, then the one document can facilitate this.
However, if you wish to name someone knowledgeable within the business on the LPA but do not wish them to have access to your personal affairs, or you may have a personal attorney who you do not wish to be involved in the business, then you will require two documents; a business LPA, restricted just to the business and a personal LPA restricted to all assets except the business assets. You may have attorneys that are named on both documents.
As always, this is a specialised area and so appropriate professional advice is highly recommended. If you require a conversation about your own circumstances, then please call us at Hamilton Legacy on 0191 406 0747, or
email us at firstname.lastname@example.org, we would be delighted to talk this through with you.