Published on: 6th July 2026

Lasting Powers of Attorney: Is your Business Protected?

When people think about a Lasting Power of Attorney (LPA), they often think about decisions relating to their personal finances, retirement, or health. However, if you own a business, it is equally important to consider what would happen if you were suddenly unable to make decisions due to an unexpected illness or injury. A carefully prepared Property and Financial Affairs LPA can help ensure your business continues to operate smoothly, protecting your hard work and the people who rely on it.

What is a Business LPA?

A Business LPA is a standard Property and Financial Affairs LPA that is tailored to focus specifically on your business interests. Many business owners choose to put separate arrangements in place: one LPA covering their personal financial affairs (like their home and personal bank accounts) and another dealing strictly with their business. This allows you to appoint different people for each role. For instance, you might want a family member to manage your personal finances, but prefer a trusted business partner, colleague, or professional with commercial experience to handle your business affairs.

Why consider one?

If you are a sole trader, business partner, or shareholder, your day-to-day involvement is likely vital to your company. Without a designated person holding legal authority to step in, an unexpected absence or loss of mental capacity can cause immediate operational issues, including:

• Financial Disruption: Difficulty accessing business bank accounts, paying suppliers, or processing staff payroll.
  
  
• Legal Delays: An inability to sign contracts, renew insurance policies, or complete important commercial transactions.
  
  
• Complicated Alternatives: Without an LPA, those involved in your business may face a lengthy and costly court process to gain the legal right to act on your behalf - a delay that can put the entire business at risk.

An LPA can also be a useful practical tool even if you retain full capacity - such as authorising a trusted person to oversee business matters while you are traveling extensively or spending time outside the UK.

Aligning with your business structure

 The impact of an LPA depends heavily on how your business is set up. Different rules apply whether you are a sole trader, in a partnership, or running a limited company. It is vital that any LPA you put in place works in harmony with your existing business setups, such as Partnership Agreements or a company’s Articles of Association. A professional can help ensure your personal arrangements perfectly align with your business’s legal structure.

Planning ahead

No one expects the unexpected, but putting the right safeguards in place now provides essential peace of mind. It ensures that if you ever need to step back from decision-making, a person you trust implicitly will have the legal authority to keep the wheels turning.

If you would like to speak with one of our Consultants to discuss any of the issues raised in this article or any other Estate Planning topic please telephone 01732 868 190 or click here.

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