Ensuring Financial Protection

Background:
Mrs. Tan, a successful business owner at 70, suffered a sudden stroke that left her mentally incapacitated. Despite her flourishing business and several rental properties, her family found themselves in a difficult situation. Without a Lasting Power of Attorney (LPA) in place, they had no legal authority to access her bank accounts or manage her business operations.

Outcome Without an LPA:
As a result of Mrs. Tan’s incapacity, her business quickly encountered significant challenges. No one in her family was legally authorized to handle her accounts or approve payments. This meant that her tenants were unable to pay rent, and her employees’ salaries were delayed. With no one able to step in immediately, the family was forced to apply for a deputyship through the courts—a process that took months. During this time, her business lost revenue, her family endured financial strain, and the overall situation became stressful for everyone involved.

Learning Point:
Mrs. Tan’s experience highlights the importance of having a Lasting Power of Attorney (LPA) in place. By appointing a trusted family member or business partner ahead of time, Mrs. Tan could have ensured the seamless management of her finances during her incapacity. With an LPA, the transition would have been far smoother, allowing her business and rental properties to continue operating without disruption. This case serves as a valuable reminder that an LPA not only protects the individual but also provides critical financial stability for their loved ones and business operations.