If an accident or ill health prevents you from running your business, what happens?
There are no automatic rights for partners or spouses to take over the running of a business and if there is just a single company director then the bank’s automatic response will be to freeze the bank account. This can have a catastrophic effect on the business if you are unable to pay staff or suppliers.
The solution is to set up a commercial Lasting Power of Attorney (LPA). An LPA can cover both your personal and business affairs but can be restricted to just the running of the business. Ideally the person appointed should be someone you trust with some knowledge of the business so that it can continue operating. The LPA can be revoked at any time.
Whilst it is only natural to hope that it will never be needed we recommend that this should be considered in order to give you and your family peace of mind.
If you think that this may affect you then please contact us to arrange a free consultation about setting up a commercial Lasting Power of Attorney.