Should You Appoint Co-Fiduciaries in Your Estate Plan?
The idea of appointing multiple fiduciaries—whether under a trust, will, or power of attorney—might seem appealing. After all, two heads are better than one, right? In reality, the old saying too many cooks spoil the broth often applies more accurately. Instead of naming co-fiduciaries, it’s usually wiser to select the single most capable individual for the role.
Why Fiduciary Selection Matters
Choosing your fiduciary is arguably the most critical decision in estate planning. Unfortunately, many people focus more on how their assets will be distributed than on who will be responsible for executing those plans. Your fiduciary should be someone who is not only trustworthy but also willing and able to manage your affairs—especially during periods of incapacity or aging. This role demands responsibility, time, patience, attention to detail, organizational skills, and strong communication skills. It’s essential to have candid conversations with potential appointees to ensure they understand the responsibilities and are prepared to take them on.
Is Efficiency Improved with Co-Fiduciaries?
Some believe that appointing co-fiduciaries will streamline processes. However, it often leads to complications such as:
- Unclear division of responsibilities
- Delays in decision-making due to the need for consensus
- Increased administrative burden, especially when institutions require both fiduciaries to act jointly—even if independent authority is granted
- Higher costs, including travel expenses and legal fees if disagreements arise
Does Balance Come from Multiple Fiduciaries?
Others hope that co-fiduciaries will provide balance through diverse perspectives and oversight. While this can be true, it also opens the door to conflict. For instance:
- Resentment may build if one fiduciary shoulders more of the workload
- Differences in willingness or qualifications can lead to tension
- Family dynamics may complicate matters—such as appointing children to oversee a surviving step-parent, which can result in prioritizing inheritance over care
A Better Approach
The most effective strategy is to appoint a single fiduciary who is best suited for the role. Additionally, name at least one alternate in case your primary choice becomes unavailable. If no individual seems fully capable or willing to act alone, you might consider hiring a professional fiduciary—though that’s a topic for another discussion.
