By Tara David | Contributing Columnist
When creating an estate plan, many people consider naming their children or close friends as co-agents. Understanding the benefits and challenges of doing so is essential for estate planning. For example, John wants to name his two children as co-agents for his power of attorney.
In other instances, John might want to appoint his friend Sally and his child because he doesn’t fully trust that his kid can handle the duty or perhaps because he doesn’t want to leave his child out. I try to steer clients away from co-agents due to a few reasons.
Roadblocks
Lately, a major issue has surfaced: some banks will not even honor the power of attorney when there are co-agents. Also, if co-agents are named to handle your estate, some won’t accept this designation to open an estate account.
Although this practice may not align with Florida Statutes, we don’t want to create hurdles for your agents. Many banks also require both people to be in person at the bank to do anything, which can be burdensome. The banks don’t want to get involved with the liability of having two agents serving, which could lead to possible misuse or disputes.
Disputes
Speaking of disputes, this is probably one of the biggest reasons you should not name co-agents on documents. I’ve seen some heated arguments when two people are named as co-agents on a health care surrogate.
This legal document names two people to make medical decisions when you (the principal) are incapacitated. So, in one example, John has his two children named, and they don’t agree with the plan of care when John can no longer make his own decisions. This can be a huge obstacle for John’s medical team and his well-being.
Well, what should I do?
A possible solution is to ensure that the two agents can serve independently, meaning the agents make decisions alone. There would be wording in your document to say that only one agent is needed. However, this is not a perfect solution because there could still be disputes between the two of them. A better way to handle these issues is simply to name successor agents. What this means is that you have a first-choice and backup(s) named, so if your first choice isn’t available or declines to help, you have someone next in line.
By considering the issues and potential challenges, you can ensure your estate plan is laid out to protect your best interests and most importantly, your legacy. Cheers to peace of mind and smooth sailing ahead!
Tara David, Esq. of Estate Law of Florida, P.A. is located at 2211 E. Sample Road (Suite 101) in Lighthouse Point. Visit elflorida.com, email [email protected], or call 954-951-7274 for more information. Tara David offers complimentary consultations for estate planning, guardianship, and probate matters.