A will is for when you die. This is for if you don't
Everyone plans for death and nobody plans for the messier possibility — being alive but unable to make decisions. For a business owner, that gap is a live wire.
By Robert Festenstein, Head of Legal
Updated 14 June 2026
5 min read
The short version
- An LPA lets someone you trust make decisions for you if you lose mental capacity.
- Two types: property & financial affairs, and health & welfare. Most people do both.
- Lose capacity as a key signatory and your business can seize up overnight.
- Without an LPA, your family has to go to the Court of Protection — slow, costly, stressful. And you have to make an LPA while you still have capacity.
What it is
A lasting power of attorney lets you appoint people you trust — your attorneys — to make decisions for you if you can't make them yourself, through illness, injury or age. And here's the part people miss: this isn't an old-age thing. Capacity can go in an instant, at any age. An LPA is the only way to choose, in advance, who steps in.
The two types
- Property and financial affairs. Lets your attorney handle money, property, bank accounts and — with the right wording — business matters. Can be used, with your permission, even before you lose capacity.
- Health and welfare. Lets your attorney make decisions about your care and treatment, but only once you can't make them yourself.
Most people put both in place. Together with your will, they're the two halves of a complete personal plan.
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Why owners can't skip it
This is the risk that keeps me up. If you're a director or the sole signatory and you lose capacity — who signs the cheques? Who approves payroll? Who talks to the bank? A personal LPA might not be enough on its own for company decisions; the articles and any business-continuity provisions matter too. For an owner-managed business, capacity planning isn't tidy admin. It's the difference between the business carrying on and grinding to a dead stop.
The alternative is grim
Lose capacity with no LPA and nobody — not even your spouse — automatically has the right to manage your affairs. Your family has to apply to the Court of Protection to be appointed as a deputy: months of waiting, considerably more cost than an LPA, and ongoing supervision on top. All of it avoidable with a document that takes days to sort while you still can.
Frequently asked questions
What's the difference between the two types of LPA?
One covers money, property and financial decisions; the other covers care and medical treatment. The financial one can be used with your permission before you lose capacity; the welfare one only once you can't decide for yourself. Most people make both.
Can't my spouse just take over if I lose capacity?
No — and this genuinely surprises people. Without an LPA, nobody automatically has authority over your affairs, not even a spouse. Your family would have to apply to the Court of Protection, which is slow and costly. An LPA avoids the whole thing.
Why does a business owner need one especially?
Because if you're a key signatory or director and you lose capacity, the business can be left unable to pay anyone or make decisions. A personal LPA plus the right continuity provisions keep it running — without them, an owner-managed business can freeze.
Sources & further reading
This article is general information, not legal advice. The law changes and depends on your circumstances — always take advice on your specific situation before acting. Last reviewed 14 June 2026. Buzz Solicitors is a trading name of AD Solicitors Limited, a recognised body regulated by the SRA (no. 8011228).
A solicitor with more than two decades' experience in commercial law, dispute resolution, insolvency and judicial review. Robert acts for businesses, directors and individuals on the matters that carry real consequence — and leads Buzz Solicitors.
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