However, this will very much depend on what that person’s business interests are.

If someone is a sole trader, their business is not likely to have a separate legal entity from them. This means that appointing an Attorney under a business LPA will be an effective way for them to make provision for the continuity of their business, if they are ever incapacitated.

If someone is a partner in a partnership that has several partners, they should check the terms of the partnership agreement. Some partnership agreements may already include provision for what would happen should one of the partners become incapacitated. If such a provision exists, it may already adequately provide for the continuity of the business, in which case, a business LPA would not be necessary. However, if a partner is in doubt about the provision made in the partnership agreement, or they feel that an LPA may be required, they should seek advice on the wording of the LPA, to ensure that it does not conflict with the provisions already made in the partnership agreement.

If someone is a Director of a company, they should check the company’s Articles of Association. Articles of Association are a set of written rules regarding the running of a company. Very often, these rules will provide for the termination of a Director’s appointment in the event of them losing capacity. This is often done to protect the company’s interests. If someone is the sole Director of a small private company, the Articles of Association are not likely to simply terminate their appointment, or there would be no one else to continue running the company. In such circumstances, a business LPA would be appropriate.

For further advice or information please feel free to contact me by e-mailing nick@st10law.co.uk or by calling 01538 703101 or 07814 170959