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BY BERNARD A. KROOKS, CERTIFIED ELDER LAW ATTORNEY

SPECIAL GUEST CONTRIBUTOR: JOEL KROOKS, ESQ.

In estate planning, a fiduciary is someone entrusted with managing another person’s assets and affairs, often serving as an executor, trustee, or power of attorney. Many individuals consider appointing co-fiduciaries—two or more people sharing fiduciary responsibility—to ensure a balance of perspectives and safeguard decision-making. Many clients express a desire to treat all of their children equally, which often leads them to consider naming all of them as co-fiduciaries. While co-fiduciaries can offer several advantages, there are also important drawbacks to consider.

Pros of Appointing Co-Fiduciaries

Checks and Balances: One of the most common reasons for appointing co-fiduciaries is to create a system of checks and balances. When more than one person is involved, the risk of mismanagement, fraud, or favoritism is reduced. This can be particularly important in high-value estates.

Shared Workload: Estate or Trust administration can be time-consuming and complex. Co-fiduciaries can divide responsibilities, such as communicating with beneficiaries, managing assets, filing taxes, and handling legal matters. This shared workload can reduce stress and ensure that no single fiduciary is overwhelmed. Co-fiduciaries can also bring complementary skills to the table. For example, one fiduciary might be financially savvy, while the other has strong interpersonal skills for dealing with family dynamics. This can lead to more well-rounded decision-making.

Family Representation: In blended families or when children from multiple marriages are involved, appointing co-fiduciaries from different branches of the family can help maintain neutrality and foster trust among heirs.

Cons of Appointing Co-Fiduciaries

Risk of Disagreement: Co-fiduciaries must make decisions together, and disagreements can delay important actions or lead to legal disputes. If the co-fiduciaries have conflicting personalities or values, the process can become contentious, causing friction among heirs and potentially increasing legal costs. If the co-fiduciaries are family members, it can also lead to conflicts among family members and strain or even damage relationships. While the intention may be fairness, asking children to manage an estate together can place emotional stress on them—especially during a time of grief. The pressure to make joint decisions under emotional strain can deepen rifts rather than promote unity.

Slower Decision-Making: Requiring the agreement of multiple parties often slows down decision-making, especially if the fiduciaries are located in different cities or states. In urgent situations, such delays can be problematic. If co-fiduciaries are evenly split on a decision and there’s no mechanism in the estate plan to resolve a deadlock, administration can stall entirely. This might require court intervention to break the tie, further complicating the process.

Unequal Participation: In practice, one co-fiduciary may end up doing the bulk of the work while the other remains passive. This can breed resentment or lead to inefficiencies, particularly if compensation is shared equally.

Difficulty in Financial Institutions and Courts: Some banks, brokerage firms, or courts prefer working with a single decision-maker. They may impose stricter requirements when multiple fiduciaries are involved—such as needing all signatures for every transaction—leading to delays and frustration.

Conclusion

Appointing co-fiduciaries in an estate plan can provide balance, accountability, and shared responsibility—but it can also introduce the risk of conflict, inefficiency, and delays. When considering co-fiduciaries, it’s important to choose individuals who communicate well, share mutual respect, and are capable of working together under pressure. Consulting with an estate planning attorney can help you weigh these factors and structure your fiduciary appointments to best serve your estate’s goals.

Bernard A. Krooks, Esq., is a founding partner of Littman Krooks LLP. He was named 2021 “Lawyer of the Year” by Best Lawyers in America® for excellence in Elder Law and has been honored as one of the “Best Lawyers” in America since 2008. He was elected to the Estate Planning Hall of Fame by the National Association of Estate Planners & Councils (NAEPC). Krooks is past Chair of the Elder Law Committee of the American College of Trust and Estate Counsel (ACTEC). Mr. Krooks may be reached at (914-684-2100) or by visiting the firm’s website at www.littmankrooks.com.