Survey finds almost 90% of business owners lack Lasting Power of Attorney

Survey finds almost 90% of business owners lack Lasting Power of Attorney

Earlier this year, Deo Law partnered with Lincolnshire Open Research and Innovation Centre to conduct a survey on Lasting Powers of Attorney (“LPAs”).  This article sets out some of the findings.

What are “LPAs”?

They are legal documents which allow you (the “Donor”) to name people (“Attorneys”) to help with your financial and medical decisions, if needed.

Can I have an example?

Person X has a small business, a couple of modest bank accounts and he is in the process of selling his home which he owns with his husband. Unexpectedly, X suffers a debilitating stroke. The small business grinds to a halt, the bank will not allow the husband access to X’s accounts and the property sale falls through. In this example, LPAs would have been a huge help to X.

What did your survey find?

Some interesting points:

• 90% of business owners said that they do not have a business-specific LPA. There is an important distinction between choosing Attorneys for your personal financial decisions (e.g. family and friends) and choosing Attorneys for your business dealings (e.g. someone who has experience of running a business, someone who knows your specific business or even someone who may already be involved in the business).

Almost a third of people thought that Attorneys can carry on dealing with the Donor’s personal affairs after that Donor has died. This is not true; the role of Attorney ends and the role of Executor begins.

• When asked why they don’t have LPAs in place, most people said they just haven’t managed to get around to it yet.

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Deo Law is a specialist, Lincolnshire practice run by solicitor Jemal Deo. We only offer Private Client services (which includes Wills, Trusts, Powers of Attorney and Probate) so we know our trade well. Take a look at our Google reviews and our website to learn more (or just give us a call!).

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