Five things female entrepreneurs need to know before setting up a lasting power of attorney

Legal

You’ve poured blood, sweat, and late-night caffeine into building your empire. 

But what happens to your business and personal assets if you unexpectedly lose the capacity to make decisions? For female founders, setting up a lasting power of attorney is the ultimate boss move to ensure your legacy survives.

If you’re one of them and have no idea what you need to know before taking this step, you’re in the right place. Here, we’ll break down the 5 critical things every female entrepreneur must be aware of.  

Source: Magnific.com

1) Your Business Needs Its Own LPA

Many entrepreneurs assume a standard financial power of attorney covers their company. No, it typically does not. 

A separate Business Lasting Power of Attorney allows a trusted co-director or manager to make crucial operational decisions – like running payroll and fulfilling contracts – if you fall ill. Without this, your company accounts could be frozen.

2) You Must Act Before You Lose Capacity

An LPA is an emergency brake that can only be installed while you are of sound mind. Let’s say a sudden medical crisis occurs and you haven’t drafted these documents; it’s too late. 

You cannot simply grant power of attorney once you are incapacitated. Otherwise, this can force your family into a lengthy, expensive court guardianship process.

3) You Choose Who Calls the Shots

You are in the driver’s seat. You get to name your “attorneys” (the people who will make decisions for you) and can outline exactly how they must act. 

You might dictate that they make decisions jointly (forcing them to agree) or severally (allowing them to act independently for urgent matters).

4) There Are Two Main Categories

You can create separate documents tailored to different aspects of your life. A Property and Financial Affairs LPA covers business and personal assets. 

A Health and Welfare LPA ensures a trusted person can make decisions about your medical care and living arrangements if you cannot communicate your needs and preferences.

5) Paperwork Must Be Flawless

Registering these documents isn’t just about grabbing a template; strict legal rules apply. It’s important to keep in mind that forms must be signed in a very specific order. 

A “certificate provider” – a professional or someone who has known you well for years – must sign to confirm you are not being coerced. 

Remember, even a minor error can cause the authorities to reject the entire document.

The Bottom Line 

You wouldn’t launch a startup without a solid business plan, so don’t leave your personal and professional future to chance. 

As a female entrepreneur, securing a Lasting Power of Attorney is the safety net that protects everything you’ve worked so hard to build. Lock down your legacy today, so you can keep leading tomorrow with absolute confidence.

Disclaimer: This article is for informational purposes only and doesn’t constitute legal or financial advice. Still not sure what can help you stay on track when setting up a lasting power of attorney? If so, feel free to seek guidance and support from a trusted legal professional.