Can You Appoint Multiple Agents in a Power of Attorney?

A Power of Attorney (POA) is a legal document in which the first party (“the principal”) grants a second party (the “attorney-in-fact” or “Agent”) the authority to act on their behalf. A principal could consider appointing multiple Agents within a single POA in certain circumstances. “Multiple Agents” can refer to different Agents serving alone in succession, such as “Agent A or A cannot serve, then Agent B; or “Multiple Agents” could refer to multiple Agents serving at the same time, such as “A and B serving together as Co-attorneys-in-fact.”

As it is almost always a good idea to have multiple backups or alternates in almost any legal document, this article will focus on the latter issue – the pros and cons of naming multiple Agents serving at the same time.

Types of Power of Attorney

A Power of Attorney can be for almost any subject matter and can take multiple forms. There are General POAs, Special or Limited POAs, Durable POAs, Non-Durable POAs, Financial POAs, health care POAs, and POAs to take custody of and care for a Child. Every POA is unique, having different stipulations and areas of authority, possibly taking effect at different times or durations.

Regardless of the type, the Agent’s role is to make decisions and take actions that align with the principal’s best interests. Depending on the specific types of power that the POA bestows, this could often involve managing financial transactions, making healthcare decisions, or handling day-to-day affairs.

Appointing Multiple Agents Under the Power of Attorney

Appointing multiple Agents under a Power of Attorney introduces another layer of decision-making complexity. If you are going to appoint multiple Agents, you can give such Co-Agents either “independent authority,” “joint authority,” “majority authority,” or a combination thereof.

With independent authority, each Agent can act alone without needing the approval or participation of the others. This allows for flexible and prompt decision-making from any or all of the Agents, but it also means that one Agent’s actions may not always align with the others’ views. This also means that if there was any such disagreement, either Co-Agent could undo or reverse the action of the other, risking a “decision loop” in which each agent keeps undoing and reversing the decisions of the other(s).

On the other hand, joint authority requires all Agents to agree unanimously and participate in every decision. This consensus-based approach ensures collective responsibility and can prevent misuse of the POA, but it also risks slow decision-making or deadlock if two Agents disagree.

With majority authority, just as it sounds, it takes a majority vote of the Agents to take action. However, as a practical matter, this sort of authority is only generally utilized if three or more Co-Agents are acting at the same time. If there are three Co-Agents, at least two must agree to any action. However, if only two Co-Agents are acting, then it would still take the agreement of both Co-Agents to take action, essentially the same as joint authority.

Finally, there are ways to combine the above types of authority.For example, adding wording to a POA that the Co-Agents may “act alone or in concert” means that the Co-Agents may exercise either independent authority or joint authority—they can each act alone or jointly.

Choosing the proper type of authority in a POA document largely depends on the desires of the principal, the interpersonal relationship dynamics between the anticipated Co-Agents, and the complexity or urgency of the decisions they’ll be handling.

Appointing multiple Agents to serve at the same time offers several advantages as well as potential disadvantages.

Pros:

• Diversification of Skills: Different Agents might bring varying areas of expertise.
• Checks and Balances:With more than one person making decisions, the potential for misuse of power is decreased.
• Extra Thought and Consideration:“Two heads are better than one.”

Cons:

• Potential for Disagreements: More Agents can lead to more viewpoints, which may result in conflicts, indecision, or stalemate.
• Slow Decision Making:If joint action is required, decisions can be delayed until all Agents agree.
• Stalemate: If unanimous agreement is required under the POA, a disagreement between the Co-Agents simply means that status quo will prevail, and whatever is currently the case will continue to be the case, because no new decision or course of action can be agreed to.

For instance, consider a scenario where siblings are jointly appointed as POA for their elderly parent. Each sibling can manage their parent’s affairs individually if given independent authority. However, if they must collaborate while exercising joint authority, and disagreements happen, decisions could be delayed or never be made, and the current situation will be extended indefinitely.

Appointing multiple Agents involves several factors and implications that should be carefully considered, ideally with professional legal guidance.

Conflict Resolution Among Multiple Agents

With the appointment of multiple Agents, disagreements are inevitable. These conflicts can range from differing opinions on financial matters to contrasting perspectives on healthcare decisions. For instance, Agents may disagree on the best action for the principal’s medical treatment or perhaps a sale of real estate.

To effectively manage these conflicts, mechanisms for resolution should be established within the Power of Attorney document. One mechanism could be outlining a clear process for decision-making, such as majority rule among the Agents. Alternatively, the document could specify that disagreements are to be resolved by a neutral third party, like a chosen mediator or arbitrator.

In severe cases where conflicts escalate and cannot be resolved internally, judicial intervention may become necessary. For instance, if an Agent is suspected of abusing their authority or decision-making is at a complete standstill due to disagreement, a Court may be called upon to resolve the issue. This could result in the removal of an Agent, imposition of a decision by the Judge, or even the revocation of the Power of Attorney.

It is important to remember that while conflict resolution measures are important, preventing conflicts through careful and considerate Agent selection, clear communication, and well-defined scope of authority is extremely important in maintaining the effectiveness of a Power of Attorney.

Seek Legal Advice When Appointing Co-Agents

Appointing multiple Agents under a Power of Attorney is a big decision that requires careful consideration. Multiple agents can provide inherent checks and balances but also present the potential for conflict. Prior to appointing multiple agents, it is important to consider the interpersonal dynamics between proposed Agents and the complexity of their duties.

If you have questions about this issue, a estate planning attorney in Springfield, MO can help you understand the legal risks and the best path forward.

If you’re considering appointing multiple Agents, consult with a lawyer. An Attorney can advise you regarding the different styles of Power of Attorney, how you should structure Co-Agency in your document(s), and help you make an informed decision that protects your interests by most effectively managing your affairs.