Sole Traders and Landlords: Who Runs Things If You Can’t?

By Matt Cresswell, Founder of Power of Attorney Online and author of
Everything you ever wanted to know about LPAs (but were afraid to ask)

12th August 2026

If you’ve searched for Sole Traders and Landlords: Who Runs Things?, you’re probably thinking about more than paperwork. You’re wondering what would actually happen if illness, an accident or dementia meant you suddenly couldn’t manage your own affairs.

For employees, losing mental capacity is devastating enough. For sole traders and landlords, there’s another concern. Their income often depends on decisions that only they can make. If nobody has the legal authority to step in, invoices go unpaid, repairs don’t happen, rent stops being collected and mortgage payments can quickly become a problem.

Many people assume a husband, wife or adult child can simply take over. Unfortunately, that’s not how the law works in England and Wales.

Planning ahead with a Property and Financial Affairs LPA gives someone you trust the legal authority to help manage your affairs if you lose the ability to make those decisions yourself. For people who run businesses or own rental property, that planning can make the difference between continuity and chaos.

Why sole traders face a unique risk

Running a business as a sole trader has plenty of advantages.

It’s simple to set up. You remain in complete control. Decision-making is quick.

The downside is that the business depends almost entirely on one person. You.

Unlike a limited company, there isn’t a separate legal entity making decisions. Your business and your personal finances are closely connected.

If you’re suddenly unable to make decisions because of illness or injury, there’s rarely anyone with automatic authority to continue running things.

Customers still expect work to be completed. Suppliers still expect payment. HMRC deadlines don’t disappear. Your mortgage still needs paying.

Without the right legal authority, even people trying to help can quickly discover that banks, insurers and service providers are unable to speak to them.

The business is you

This is the biggest distinction between sole traders and larger businesses. If a company director becomes ill, another director may be able to keep things moving.

If a sole trader loses capacity, the business often loses its decision-maker altogether.

Imagine you’re a self-employed electrician. You have ongoing work booked for the next six weeks. Customers have already paid deposits. Materials have been ordered. Your van is on finance.

Then you’re admitted to hospital following a serious stroke.

Your partner wants to contact customers, refund deposits where necessary and pay outstanding supplier invoices.

They know exactly what needs doing. Legally, though, they may not have authority to access your business bank account or manage your financial affairs. The practical consequences can begin within days.

Income doesn’t stop needing attention

One of the biggest misconceptions is that everything can simply wait.

Unfortunately, many financial commitments continue regardless of your health.

Direct debits leave your account. Insurance premiums become due. Tax payments still have deadlines. Utility bills arrive. Business subscriptions renew automatically.

If nobody can manage those commitments, problems can escalate surprisingly quickly. What begins as a temporary medical emergency can become a financial one.

Landlords face many of the same challenges

Owning rental property creates another layer of responsibility.

Whether you own one buy-to-let or a larger portfolio, there are ongoing legal and financial obligations that don’t stop because you’re unable to manage them personally.

Rent still needs collecting. Maintenance requests still need dealing with. Mortgage payments remain due. Insurance policies require renewal. Safety certificates have deadlines.

Tenants understandably expect someone to respond when problems arise. Without legal authority, even close family members may struggle to deal with these responsibilities on your behalf.

What happens to rental income?

Many landlords rely on rental income to supplement their pension or fund everyday living expenses.

If capacity is lost, someone may need to:

• collect rent
• chase missed payments
• review tenancy agreements
• instruct contractors
• approve repairs
• deal with letting agents
• manage tax records
• pay mortgages and insurance.

A registered Property and Financial Affairs LPA gives your chosen attorney the authority to carry out those tasks in your best interests.

Without one, your family may find themselves unable to access the very income needed to pay for your care or everyday living costs.

What if you already use a letting agent?

Some landlords assume using a letting agent removes the need for an LPA.

Not necessarily. A managing agent can often deal with routine property management. They can organise repairs, collect rent and communicate with tenants within the scope of their management agreement. However, many important decisions still require instructions from the property owner.

For example:

• approving major repairs
• renewing mortgages
• refinancing property
• selling an investment
• responding to legal disputes
• changing ownership details.

If you’re unable to give those instructions yourself, the agent will usually need to deal with someone who has the legal authority to act on your behalf.

That’s where a registered Property and Financial Affairs LPA becomes so valuable.

A comparison of the risks

Situation	Without an LPA	With a registered Property & Financial Affairs LPA
Sole trader becomes seriously ill	Business decisions may stop immediately	Attorney can help manage financial affairs in your best interests
Rent needs collecting	Family may have no authority	Attorney can collect and manage rental income
Mortgage payments due	Risk of missed payments	Attorney can maintain payments
Property repairs	Delays while authority is established	Attorney can instruct contractors
Bank needs instructions	May refuse to deal with relatives	Can deal directly with appointed attorney
Unexpected tax deadlines	Difficult for family to manage	Attorney can work with accountants to meet obligations

What we’ve noticed reviewing applications

At Power of Attorney Online, we’ve reviewed thousands of Lasting Power of Attorney applications.

One pattern appears repeatedly. People who own rental property or run their own business often focus on protecting personal savings but don’t always think about the income-producing assets that support their family.

It’s only when they start imagining who would deal with tenants, customers, suppliers or business banking that they realise how much depends on having the right legal authority already in place.

What agents, banks and lenders will and won’t accept

One of the biggest misconceptions surrounding a Property and Financial Affairs LPA is that simply having the document means everyone will immediately speak to your attorney.

In reality, every organisation has its own internal procedures. Some are straightforward. Others are much slower. Knowing what to expect helps families avoid unnecessary frustration.

Banks usually need to register the LPA first

Even after the Office of the Public Guardian has registered the LPA, your attorney normally needs to register it separately with each bank or building society.

Until that happens, the bank is unlikely to discuss accounts or allow transactions.

The registration process varies between banks. Some now accept digital verification or certified copies through dedicated Power of Attorney teams. Others still ask attorneys to visit a branch or send documents by post.

This is why many families are surprised that a registered LPA is not always immediately usable.

There is often one more administrative step before the attorney can act. If someone owns accounts with several banks, this process usually needs repeating with each institution.

Mortgage lenders have their own requirements

Managing a mortgage can involve far more than making monthly payments.

Your attorney may need to:

• discuss payment difficulties
• request mortgage statements
• arrange a product transfer
• obtain redemption figures
• authorise repairs required by the lender
• deal with insurance issues

Most lenders will recognise a properly registered Property and Financial Affairs LPA.

However, they may still carry out identity checks and request certified copies before discussing the account.

If there is no LPA, the lender is unlikely to discuss anything beyond very limited information, even with close family members.

Letting agents need legal authority too

Many landlords assume their letting agent can simply continue acting if something happens to them.

Sometimes that works for routine matters. Sometimes it doesn’t.

Major decisions such as signing new agreements, approving significant expenditure, selling the property or dealing with legal disputes often require instructions from someone with legal authority.

Without an LPA, the agent may find themselves unable to obtain those instructions. That can create delays precisely when tenants need decisions quickly.

Local authorities and HMRC

Property attorneys frequently need to deal with organisations beyond banks.

This may include:

• local councils
• HM Revenue & Customs
• utility providers
• insurance companies
• pension providers
• investment platforms

Each organisation has its own verification process.

Some accept the government’s online LPA access service. Others still prefer certified paper copies.

Building extra time into these registrations is sensible, particularly if someone is beginning to struggle with managing their own affairs.

Why registering early makes life easier

A common mistake is waiting until a crisis before introducing the LPA to organisations.

Imagine somebody is admitted to hospital unexpectedly. The attorney now needs access immediately.

Instead, they’re faced with several weeks of registering documents across different banks, lenders and providers. Registering the LPA with key organisations while everything is calm can remove a huge amount of stress later.

Many attorneys choose to register with banks soon after the LPA is registered by the Office of the Public Guardian, even if they never expect to use it immediately.

It simply means everything is ready if circumstances change.

Structuring your Property and Financial Affairs LPA for landlords

Many landlords ask whether they need special wording in their LPA.

Usually, the answer is no. A standard Property and Financial Affairs LPA already gives attorneys broad authority to manage property, investments and financial matters.

Adding unnecessary instructions often creates more problems than it solves. Instead, the focus should be on appointing the right attorneys.

Choose attorneys who understand property

Owning one buy-to-let property is very different from managing a portfolio of ten.

Your attorney doesn’t necessarily need to be a property professional.

They do need to feel confident dealing with:

• letting agents
• maintenance contractors
• accountants
• mortgage lenders
• insurers
• tenants

Someone who already understands your finances will often find the role much easier.

Think carefully about joint appointments

If two attorneys must always act together, every property decision requires both signatures.

That may sound sensible. In practice, it can slow everything down.

Imagine one attorney is travelling abroad when an urgent roof repair needs authorising. Or one is ill while a tenancy agreement requires signing.

Appointing attorneys jointly and severally often gives much more flexibility because either attorney can deal with routine matters independently. For many property owners, that approach works better.

Keep accurate records

Attorneys should always keep records of:

• rental income
• maintenance costs
• invoices
• tax payments
• mortgage payments
• major decisions

This protects both the attorney and the person whose affairs they are managing.

If questions ever arise from family members or the Office of the Public Guardian, good record keeping demonstrates that decisions were made properly and in the donor’s best interests.

Don’t overcomplicate Section 7

Many people feel they should fill every available box on the LPA.

In reality, Section 7, which covers preferences and instructions, is often where avoidable mistakes happen. Complicated wording about individual properties, future sales or detailed investment instructions can create uncertainty.

Where possible, keeping the document clear and straightforward usually results in fewer problems later. During our own application reviews, Section 7 remains one of the areas where we identify the highest number of issues before forms are submitted.

A small change before signing is far easier than trying to resolve a problem once the application reaches the Office of the Public Guardian.

When a Separate Business LPA Makes Sense

Most sole traders and landlords can achieve everything they need with a carefully drafted Property and Financial Affairs Lasting Power of Attorney.

There are situations, however, where creating a separate Business LPA makes more sense.

A Business LPA is simply a Property and Financial Affairs LPA that is limited to business matters. It allows you to appoint different attorneys to deal with your company or business while someone else manages your personal finances.

This can be particularly useful if:

• your spouse understands your household finances but has no involvement in your business
• you have business partners who know how the company operates
• your accountant or fellow director would be better placed to manage commercial decisions
• you want to keep family finances completely separate from business affairs

For example, imagine Sarah owns a successful plumbing business. Her husband is excellent with household finances and understands the family’s investments, but has never been involved in the business.

Her operations manager, meanwhile, knows every customer, supplier and employee. Rather than expecting one person to manage everything, Sarah creates:

• a personal Property and Financial Affairs LPA appointing her husband
• a Business LPA appointing her operations manager

If Sarah loses capacity, both people can continue looking after the areas they understand best.

It reduces mistakes, protects the business and gives everyone clearer responsibilities.

For limited companies, this separation can be particularly valuable because company directors owe legal duties to the business itself. Having someone with genuine commercial knowledge acting under a Business LPA often makes practical sense.

Common Mistakes We See

At Power of Attorney Online, one of the most common themes we see when reviewing applications is people assuming their LPA only needs to deal with bank accounts.

In reality, a Property and Financial Affairs LPA can potentially cover hundreds of different financial decisions.

Where appropriate, attorneys may need authority to:

• deal with HMRC
• manage rental properties
• negotiate with mortgage lenders
• sign contracts
• instruct accountants
• complete tax returns
• collect business income
• pay suppliers
• renew insurance policies
• deal with pension providers

The problem is rarely that the law prevents attorneys acting. The problem is that families simply haven’t thought about everything someone actually does day to day until that person suddenly cannot do it.

The businesses that survive periods of incapacity usually have one thing in common. Somebody already had legal authority to step in.

Cost Comparison

Many business owners assume specialist legal planning will cost thousands of pounds.

In reality, creating an LPA is often far less expensive than people expect.

Option	Typical Cost
Government application (DIY)	OPG registration fee plus your own time
Online guided service	Service fee plus OPG registration fee
Solicitor-prepared LPA	Often several hundred pounds, plus OPG registration fee

The real financial comparison is not the cost of making an LPA. It’s the cost of not having one.

Even a short period where invoices cannot be issued, payroll cannot be processed or rental income cannot be collected can easily exceed the cost of putting an LPA in place.

Frequently Asked Questions

Can my spouse automatically run my business if I lose capacity?

Usually not. Marriage doesn’t automatically give legal authority to sign contracts, operate business bank accounts or make financial decisions on your behalf.

Can an attorney run my sole trader business?

Yes, provided your Property and Financial Affairs LPA gives them authority and relevant organisations are satisfied with the documentation.

Do landlords need a Lasting Power of Attorney?

Anyone who owns rental property should strongly consider one. Without legal authority, family members may struggle to collect rent, organise repairs, deal with mortgage providers or complete property transactions.

Can my letting agent keep managing my property if I lose capacity?

They may continue carrying out work already authorised under your management agreement. However, new instructions, major decisions or financial matters often require someone with legal authority to act for you.

Does my personal LPA cover my limited company?

It may cover your shares and certain financial interests, but it does not automatically solve company governance issues. Your company’s Articles of Association, shareholder agreements and director arrangements all need consideration.

Should I have a separate Business LPA?

Many business owners benefit from separating personal and commercial decision-making. If different people are best placed to manage different parts of your life, separate LPAs can provide greater flexibility.

Final Thoughts

Nobody starts a business expecting illness or an accident to stop them working.

Landlords don’t expect to suddenly become unable to deal with tenants.

Most people assume someone close to them will simply step in if needed.

Unfortunately, that’s rarely how the law works. Without legal authority, even the people who know you best can find themselves unable to access accounts, sign paperwork or keep important financial responsibilities moving.

For sole traders, that can mean income stops overnight.

For landlords, it can create problems for tenants, lenders and ongoing property management.

For families, it often creates unnecessary stress during an already difficult time.

The good news is that planning ahead is usually straightforward. Putting a Property and Financial Affairs Lasting Power of Attorney in place while you have mental capacity allows you to choose who you trust, decide how decisions should be made and avoid leaving your family to navigate expensive alternatives later.

Whether you run a business, own rental property or simply want someone you trust to be able to help if life takes an unexpected turn, having the right LPA in place gives both you and your family far greater certainty about what happens next.