ACC Guidance update – when does a deputy need COP approval for legal work?
A second financial LPA is extremely useful where you have a business (e.g. as a sole trader) or a professional career and you want (or are required) to keep the assets and affairs of the business or profession separate to your own.
You may be entirely comfortable with having a family member or friend manage your personal property, bank accounts and investments. You may not however wish for these same people to be in control of your professional affairs.
There are numerous professions where you may have accounts or records which are within your control but do not constitute part of your own personal affairs. For example, many psychotherapists, psychiatrists and regulated health professionals are expected to ensure that their professional affairs are in order so that if anything were to happen to them, an appropriate person would be able to pick up the reins. Chances are the appropriate person in this situation would be a colleague or at least someone you trust within the industry, as they would have the expertise and familiarity needed to conduct such affairs.
It is easy to put in place separate financial LPAs covering (i) your personal and (ii) your professional affairs. It simply requires:
Similarly, your personal LPA should include wording to the effect that your attorneys will have general authority to act in relation to all your property and affairs except any decisions relating to your business, your business accounts and your professional role.
The key thing when making a professional LPA is to prepare an accompanying side letter, addressed to the attorneys of that LPA, to explain their appointment and give them all of the details they may need to carry out their role and ensure your professional affairs are suitably taken care of.
Stephanie Mooney is an Associate in the Private Client team. Stephanie’s clients include high net worth individuals, entrepreneurs, executors, trustees and individuals who lack mental capacity.
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