This Case Study deals only with the impact of Barry’s loss of capacity in relation to his business and not in relation to his personal affairs (that would also be affected if he did not have a Lasting Power of Attorney to cover this – find out more in our Lasting Power of Attorney Case Studies).
WITHOUT A BUSINESS LPA IN PLACE
– The bank can freeze the business bank account due to Barry losing capacity
– No one has access to the business bank accounts meaning that suppliers will not get paid
– No one has authority to speak to financial institutions on Barry’s behalf
– No one has authority to sign cheques on behalf of the business
– No one has authority to deal with any insurance renewals that are due
– No one has authority to deal with existing Service Level Agreements that Barry has entered into
– No one has authority to enter into any new contracts and Service Level Agreements
– Disruption caused to the business and the servicing of existing customers
WITH A BUSINESS LPA IN PLACE
– Barry has piece of mind that his business will be looked after by those he trusts most to be able to make decision whilst he is unable to
(Barry may well appoint a close friend, a child (over the age of 18) or another business owner, rather than his partner if he does not think she would be the best person to look after the business if he is unable to do so)
– The appointed Attorney can access the business accounts and prevent the bank from freezing these
– The appointed Attorney can authorise bank payments and transfers from the business bank account
– The appointed Attorney can pay any suppliers
– The appointed Attorney can sign cheques if necessary
– The appointed Attorney can deal with any insurance renewals that are due
– The appointed Attorney can continue with existing Service Level Agreements that Barry has entered into
– The appointed Attorney can engage contractors to service Barry’s existing customers, if required, to ensure the business continues
– The appointed Attorney can enter into any new contracts and Service Level Agreements, if they think it necessary
– Limited disruption to the business, providing that Barry’s children are able to help with servicing existing customers
– No need to make a Court Application to appoint a Deputy to make decisions on Barry’s behalf whilst he is unable to do so
Unfortunately, it cannot be assumed that your spouse/partner can just step up and make decisions when you are unable to, especially in relation to your business. You can therefore see how important it is (and how much easier!) to have an LPA in place giving the people that you trust the ability to make decisions for you when you are unable to.
From the initial call to the registered Lasting Powers of Attorney being delivered, the whole process (including home consultations to go through the Lasting Powers of Attorneys and any discussions with your proposed Attorneys) can be completed within three months. The Office of the Public Guardian (OPG) take around 8-10 weeks to process the application and so a three-month time period allows for the OPG to check and register the Lasting Power of Attorney and for us to receive this and deliver back to you ready for use.
When we deliver your Lasting Power of Attorney we will also give you information as to how the Lasting Power of Attorney can, and should, be used as well as answer any questions that you have.
If you would like to discuss putting a Lasting Power of Attorney in place to protect your business, call us on 01727 865 121 or email us at info@TotalLegacyCare.co.uk for a free discussion on how we can help
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