When planning your estate, one of the most important decisions you make is choosing the people who will carry out your wishes. Many parents want all of their children to serve together as co-trustees of a trust or co-personal representatives of a will. While this may seem fair, naming more than one person to act in these roles can create challenges that families don’t always anticipate.
In this article, we’ll explain the differences between trustees and personal representatives, review the risks and benefits of appointing co-decision makers, and share strategies for keeping family harmony during the estate administration process.
Trustees vs. Personal Representatives: What’s the Difference?
Before weighing the risks of naming multiple people, it helps to understand the roles:
- Trustees manage the property and assets that are placed into a trust. Their job is to carry out the instructions outlined in the trust document, invest assets responsibly, and make distributions to beneficiaries.
- Personal Representatives (formerly known as executors) are responsible for managing a person’s estate after death. They gather assets, pay debts and taxes, and distribute the remaining assets according to the will.
Both positions require careful decision-making, strong organizational skills, and a high level of trust. Adding multiple people to either role increases complexity.
Risks of Naming Co-Trustees or Co-Personal Representatives
While the intention is often fairness, having co-decision makers can slow down the process and even create conflict. Here are some common risks:
1. Delays in Administration
When two or more signatures are required for every transaction, delays are almost inevitable. This can be especially problematic in time-sensitive situations, such as qualifying a loved one for government benefits or managing urgent medical expenses.
2. Risk of Stalemate
Equal authority means disagreements can stall progress. While some families resolve disputes amicably, others may face stalemates that result in costly litigation.
3. Extra Burden with Financial Institutions
Banks and other financial institutions are often wary of co-fiduciaries. Opening or managing accounts may require all named representatives to appear together, which takes time away from work and family obligations.
4. Distance and Logistics
In today’s mobile society, children may live in different states or even different countries. Coordinating schedules for meetings, court appearances, or signatures can be a significant burden.
Advantages of Co-Decision Makers
There are some situations where naming co-trustees or co-personal representatives may be beneficial:
- Checks and balances: Having two individuals involved can provide oversight and accountability, ensuring one person is not making decisions in isolation.
- Blended families: In cases where a surviving spouse acts as trustee, naming a stepchild as co-trustee may help protect the interests of the deceased spouse’s children.
- Diverse skill sets: Sometimes one child has financial knowledge while another has a close personal connection to the family. Dividing responsibilities can make administration more effective.
Tips for Reducing Family Conflict
No matter who you choose, clear communication can help prevent disputes and confusion. Consider these steps:
- Discuss your estate plan openly. Talking with your children about your wishes can reduce misunderstandings later. If needed, invite your estate planning attorney to facilitate the discussion.
- Write a letter of instruction. A written explanation of your intentions provides context and guidance, even if emotions run high.
- Share a summary of your estate plan. Without revealing exact dollar amounts, a summary can help your family understand the structure of your plan and what to expect.
Why Legal Guidance Matters
Choosing trustees and personal representatives is more than a family decision—it has long-term legal and financial implications. At Surprenant, Beneski & Nunes, we work with families across Massachusetts to design estate plans that reflect their wishes while minimizing conflict. We can help you evaluate whether co-fiduciaries are the right choice for your circumstances and identify strategies to protect your loved ones.
Protecting Your Family with the Right Fiduciary Decisions
Naming all of your children as co-trustees or co-personal representatives may feel like the fairest option, but it often comes with risks that can complicate estate administration. By carefully considering your choices, communicating your intentions, and working with an experienced estate planning attorney, you can reduce the chance of conflict and create a plan that truly works for your family.
If you’re ready to review or update your estate plan, contact Surprenant, Beneski & Nunes today. We will help you select the right people for these important roles and ensure your plan provides clarity, protection, and peace of mind.
