If you have several adult children, you may want two or more of them to manage your finances if you can no longer do so. But what happens if they disagree or one becomes unavailable? New York law lets you appoint several people to this role. However, it is generally not advisable to appoint multiple co-agents.
Can your agents act together or separately?
Under New York law, you can name two or more people as co-agents. You can choose how they work:
- Joint authority: Your agents generally must act together to handle your finances. This allows shared control but may cause delays if they disagree.
- Separate authority: Each agent can act alone without the others’ approval. This gives them more freedom but also more control over your finances.
By default, co-agents must act together unless the power of attorney allows them to act separately. You can authorize separate action by initialing that option on the state’s standard power of attorney form.
Each agent must also sign the form and have their signature notarized before they can act. If you require joint action, all agents must complete this step before the power of attorney takes effect. Having more than one person named as a power of attorney creates delays and greatly increases the risk of litigation if the co-agents disagree about the handling of matters pursuant to the power of attorney.
What happens if one agent cannot serve?
You can also name successor agents, or backups, who take over if an agent dies, resigns, becomes unable to make decisions or cannot serve. This is much preferable to naming co-agents as the successor only assume the responsibility if the primary agent cannot act. By entrusting the power of attorney to only one person at a time, you streamline decision-making and cut down the potential for delays and costly litigation.
If the primary agent is temporarily unavailable, the successor may act in an emergency. This applies when urgent action is needed to prevent serious harm to your interests. If the primary agent dies, resigns or can no longer serve, the successor shall assume the responsibility to continue acting unless your document says otherwise.
Clarifying your agents’ roles and responsibilities
Appointing multiple agents involves more than deciding whom you trust. The authority you give them must also reflect how you want financial decisions handled. A New York estate planning attorney can explain how different arrangements work, address potential conflicts and help ensure your power of attorney reflects your intentions.
