Choosing who will make decisions for you if you cannot make them yourself is one of the most important parts of planning for the future. Many people appoint more than one person, such as two adult children, a spouse and a sibling, or a family member and a trusted friend. If you do, there is a second decision to make that is easy to overlook: how those people will work together.

This article explains the difference between joint appointments and joint and several appointments, and the practical effect of each, so you can make an informed choice.

Attorneys and enduring guardians: what is the difference?

When appointing more than one attorney under a power of attorney, or more than one enduring guardian, an important decision is whether they must act jointly or may act jointly and severally. The choice affects how decisions are made and what happens if one appointee cannot continue.

An attorney generally makes financial and legal decisions, such as managing bank accounts, paying expenses or dealing with property.

An enduring guardian makes personal and lifestyle decisions after the appointing person loses decision-making capacity, such as decisions about accommodation, health care and services.

Joint appointments: decisions made together

If two or more attorneys or enduring guardians are appointed jointly, they must make decisions together. This provides an important safeguard because no individual appointee can act alone.

Joint appointment may be suitable where:

• oversight is important
• the decisions may be significant
• the appointees have different skills and perspectives

It can also reduce the risk of one person misusing their authority.

The drawbacks of joint appointments

Requiring everyone to agree can cause delays or deadlock. This may be difficult when an urgent decision is needed or the appointees live in different locations. It can also create practical problems when signing documents or dealing with organisations that require evidence of every appointee’s agreement.

Depending on the wording of the document and the applicable law, the authority may also be affected if one joint appointee dies, resigns, loses capacity or becomes unable to act. This is an important point to consider when the document is prepared, rather than at a time when the arrangement is needed.

Joint and several appointments: flexibility to act alone

A joint and several appointment is more flexible. The appointees may act together, but each may also act independently. For example, either attorney may be able to pay an account or communicate with a bank without obtaining the other attorney’s approval each time. Similarly, either enduring guardian may be able to make an authorised personal decision when required.

The main advantage is convenience. Decisions can be made quickly, and the arrangement may continue operating when one appointee is temporarily unavailable. It can be particularly useful where the appointees are trusted equally and communicate well.

The risks of joint and several appointments

The principal risk is that one appointee may make an important decision without consulting the others. Different appointees could also give inconsistent instructions, causing conflict and uncertainty.

Although each appointee must comply with their legal duties, a joint and several appointment provides less day-to-day oversight than a joint appointment.

What this means for you

The best choice depends on your circumstances, including:

• the level of trust between the appointees
• how available they are, and where they live
• the types of decisions they may need to make

The document can sometimes include practical safeguards, such as requiring consultation before major decisions while allowing routine or urgent matters to be handled by one person. Clear drafting is essential so that the appointees and third parties, such as banks, health providers and aged care facilities, understand exactly how the authority is intended to operate.

These documents often need to be relied on at a difficult time for your family. Taking the time to get the structure right now can help the people you appoint act with confidence when it matters most.

Get advice on your appointments

Whether you are preparing a power of attorney and enduring guardianship for the first time or reviewing existing documents, our experienced estate planning team can explain your options in plain English and help you choose an arrangement that suits your family.

Get in touch to discuss your situation with our experienced team.