Two Brains Are Not Always Better Than One
The executor or trustee of your will or trust is the person tasked with carrying out your wishes regarding your estate. While naming co-executors or co-trustees is often done to appear “fair” or to provide checks and balances, it can easily lead to significant administrative and familial complications.
Administrative Delays and Inefficiency
Multiple people managing an estate is inherently slower than with a single decision maker for many reasons, including:
- Mandatory Collaboration: Co-executors or co-trustees generally must act in unison. This means all parties must sign every check, real estate deed, tax return, and court filing.
- Logistical Hurdles: If co-executors or co-trustees live in different states or have conflicting schedules, coordinating these mandatory signatures can delay simple tasks, such as opening a bank account.
- Stalemate Risks: When co-executors or co-trustees disagree, the administration of the estate can become paralyzed. Without a tie-breaking provision (like a “majority rules” clause), even minor disputes can grind the process to a halt.
Increased Costs
A “shared” role can end up costing the estate more than a single appointee. If co-executors or co-trustees cannot agree, they may each hire their own legal counsel, or the estate may need to pay for court intervention to resolve deadlocks.
Family Conflict
The stress of settling an estate can exacerbate existing family tensions. Resentment over workload can potentially lead to conflict among co-executors or co-trustees if one ends up doing the bulk of the work. Parents sometimes name feuding children as co-executors or co-trustees to ‘force them to talk,’ which frequently backfires and results in permanent rifts or litigation.
Alternatives to Consider
Instead of naming co-fiduciaries, consider the following:
- Successor/Alternate Appointments: Name one primary individual and list others as alternates who step in only if the first is unable to serve.
- Professional Fiduciaries: Use a neutral third party, such as a bank or professional trust company, to handle complex assets and maintain neutrality.
- Majority Rule Clauses: If you must name more than two executors or trustees, include language allowing the majority to make binding decisions to avoid total stalemates.
Before naming co-executors or co-trustees, it is highly advisable to seek expert help from an experienced estate planning or elder law attorney. A well thought-out plan can avoid conflict, delays, and stress.
