You may already understand the importance of having a power of attorney (POA). It is invaluable to have a person you trust to make decisions on your behalf if you become incapacitated.
But if one is good, is two better?
The pros and cons
A POA is a legal document that gives someone the authority to act on your behalf in financial, legal or health matters if you cannot make decisions yourself. The benefits of having two POAs include the following:
- It creates a system of checks and balances. The agents can monitor each other’s actions and reduce the risk of financial mismanagement.
- Overseeing your responsibilities while tending to their own can be overwhelming for a single person. You can ease the burden by appointing two POAs and ensuring no single person is wearied by their duties.
- Different POAs have different skills. One may be more adept at making financial decisions while another understands health care better.
- If one agent is unavailable due to work, travel or personal reasons, the other can step in and manage your affairs.
One unfortunate scenario is that you are incapacitated, and your POA passes away. Without having another POA, there could be a potential court battle to determine who will take over your affairs.
While there are advantages to having more than one POA, there could be potential complications, such as:
- If the two agents have conflicting opinions on what’s best for you, their disagreements can lead to delays and legal battles.
- Understanding roles and responsibilities can become complicated, so it’s essential to have clear guidelines and clear communication.
Deciding whether to have two POAs depends on your circumstances. Having two may be a wise choice if you have a complex estate. Before making any decisions, you should review your options with someone who can provide guidance.
