Why Small Business Owners in New Jersey & New York Need a Power of Attorney (POA) in Place
The Small Business Administration (SBA) Office of Advocacy reports that there are more than 950,000 small business owners in New Jersey. If you own and operate a small business, it is imperative that you have a comprehensive estate plan in place. A power of attorney (POA) is an essential document for a small business owner who is heavily involved in the day-to-day operation of their company. Within this blog post, our New Jersey and New York estate planning attorney explains why it is crucial that small business owners have a properly structured POA in place.
New Jersey Law: Power of Attorney
In New Jersey, the law governing power of attorney is outlined in (NJ Rev Stat § 46:2B-8.2). The statute creates a detailed legal framework for the requirements for setting up a valid POA. The law
specifies the powers that can be granted to an agent including—but not limited—to financial and legal matters. New Jersey law requires that a POA document is properly signed, witnessed, and notarized to ensure its enforceability.
A POA Protects You in the Event of Incapacity
POA is a crucial legal document that ensures your affairs are managed according to your wishes if you become incapacitated. By appointing a trusted individual as your agent, a POA grants them the authority to handle financial, legal, and even health-related decisions on your behalf. It is a proactive measure that prevents the need for court-appointed guardianship or conservatorship. Setting up a guardianship or conservatorship is far more time-consuming, costly, and complicated.
Why a POA is Essential for a Small Business Owner
While a POA is a key estate planning document for all adults, it is especially vital for small business owners in New Jersey. Here are some notable reasons why every small business owner should set up a power of attorney as part of their estate plan:
- Continuity of Operations: A POA ensures that critical business operations continue seamlessly in the owner’s absence due to incapacity or other reasons. Continued operations are vital for maintaining service delivery, fulfilling contracts, and preserving relationships.
- Financial Management: The designated agent can handle financial transactions, such as paying bills, managing payroll, and making investment decisions. It prevents financial disruptions that could be detrimental to the company.
- Decision Making: With a POA, an agent can make urgent business decisions, negotiate and enter contracts, and manage everyday business activities. The reality is that decisions must be made no matter what might happen. A POA puts the right structure in place.
Contact Our New Jersey and New York Estate Planning Lawyer for Small Business Owners Today
At Poulos LoPiccolo PC, our estate planning attorney provides solutions-focused advocacy to people and families. If you have any questions about setting up a POA as a small business owner, please do not hesitate to contact us today for your confidential consultation.
Source:
advocacy.sba.gov/wp-content/uploads/2022/08/Small-Business-Economic-Profile-NJ.pdf
