What Is a Dual Power of Attorney and Do I Need One?

What is a dual power of attorney (POA)?

There are two main roles in a power of attorney:

• Principal. The person delegating decision-making power
• Agent. The person (or people) who are taking on decision-making power

Dual or joint power of attorney (POA) is an arrangement wherein you appoint two or more agents to manage your medical and financial affairs in the event that you become incapacitated. 

You can delegate specific responsibilities to each agent. It’s common to assign one agent over medical decisions and the other over financial decisions, but you can divide it up however you prefer. If you have three or more adult children and want them all involved, for example, you could give them each a specific role or make it clear that they all have to reach a consensus for any decision-making.

However you arrange it, there are many benefits to having the responsibilities separated.

Types of dual power of attorney

• Durable power of attorney for healthcare. Unlike a living will, or advance directive, a medical power of attorney gives your appointed agent the legal authority to make decisions about any medical treatment, pain management, end-of-life care, organ donation, and any other medical decision when you are unable to do so. Ideally, your medical power of attorney will enforce your advance directive. This is helpful in the event of temporary incapacitation (such as after an accident) or ongoing care for long-term situations. 
• Durable power of attorney for finances. This grants your agent the authority to manage legal and financial matters, such as paying bills, managing investments, and handling property transactions. They can sign their name on any legal or financial documents on your behalf.

Who should consider using a dual power of attorney?

In truth, everyone can benefit from having a dual power of attorney; it gives you a voice in decisions made about your health and finances after you become incapacitated.

While a POA is a wise part of any estate plan, there are certain people for whom a POA or dual POA should become a priority:

• People who have been diagnosed with a terminal illness that could possibly inhibit their physical and/or cognitive abilities
• Aging adults who may be at risk of dementia or cognitive decline
• Those who have difficulty managing finances online, or who have memory lapses that cause them to forget bill payments, medications, or doctor appointments
• Caretakers or parents with children who may need to arrange care for their dependents if they cannot provide it
• Business owners who do not have a business continuity plan clearly outlined in their operating procedures
• Those who are scheduled for surgery

These situations tend to have a way of sneaking up on us before we’re ready, so it's smart to have your estate plan and POA in place sooner rather than later.

If you're worried about giving up your independence, keep in mind that many states have the option to create a springing POA—one that doesn't take effect until the principal is declared incapacitated. That way, you can rest assured that your affairs are in order while maintaining your authority to make your own medical and financial decisions in the meantime.

Benefits of dual POA

Some people appoint their spouse, partner, or another trusted person as power of attorney for all their affairs, but this can be risky for several reasons. What if you and your agent are both incapacitated in the same accident? What if your POA becomes incapacitated first?

Many people choose to appoint a successor agent to act in the event that their designated agent cannot complete their duties. You can also achieve this through a dual power of attorney. Here’s why a dual POA may be a better solution:

• Specialized decision-making. Dividing up responsibility allows you to designate responsibility based on areas of strength. Whoever you designate as the medical power of attorney will make the final call on your health care decisions, so you’ll want to choose someone who can stay calm in crisis, gather all the facts, and make an informed decision. Whoever you designate as your financial power of attorney needs to be responsible, trustworthy, and good with a budget. Choosing an agent should not be about playing favorites but choosing the best person for the task. 
• Balanced responsibility. Dividing up responsibilities is also a benefit to the agents. At a time when emotions may be running high, it can be a lot for one person to take the full weight of a POA’s responsibilities.
• Conflict reduction. Having a legal document that designates an agent to make the decisions can (hopefully) eliminate some family feuds.
• Checks and balances. One of the most appealing benefits of a dual power of attorney is that it creates built-in checks and balances when it comes to managing your affairs. Neither agent in the arrangement can unilaterally make decisions for your life and future, giving you and your loved ones peace of mind that your best interests are at the center of every decision.

Drawbacks of dual POA

Just as every rose has its thorn, however, a dual power of attorney can certainly have a few drawbacks:

• Coordination challenges. If you choose two agents who don't get along, live far apart, or have busy lives (who doesn't?), it can be difficult for them to coordinate effectively.
• Increased complexity. With more than one agent involved, administrative tasks can be more complex, and the parties involved have to keep both agents informed of important updates.
• Risk of disagreements. Even though you may have carefully set things up to avoid discord, there's always the possibility that your agents won't see eye to eye on some matters. Disputes among agents can complicate your affairs or slow down decision-making.

How to get dual power of attorney in 5 steps

If you decide to move forward with establishing a dual power of attorney, you’ll need to follow some basic steps.

1. Consult an attorney

POA laws vary by state, so it’s helpful to seek legal counsel from an attorney who knows your state’s laws well. There are free templates online, but they may not be applicable in your state, and any flaws could render your POA invalid. So if you do decide to draft your own power of attorney forms, you should at least seek an attorney review to make sure everything is correct. 

2. Discuss with potential agents

Once you have selected trustworthy, responsible agents, have an open conversation with them and ask if they are willing to take on that role. Make sure they fully understand their duties as an agent. It may also be helpful to share your decision with other family members to reduce conflict. Keep in mind that you can always change agents or revoke the POA later if needed. 

3. Execute the documents

If your chosen agents agree, make arrangements for everyone to sign the documents. Some states require a POA to be notarized. A local attorney can advise on the official process in your state.

4. Distribute copies

Once the documents are signed, you should distribute copies to both agents, any relevant healthcare providers, your financial institutions, and any other relevant parties. It’s also wise to keep a few extra physical and digital copies for yourself, stored in separate places.

5. Maintain and update your dual POA

Set a date on your calendar to review your documents. Make sure they still align with your current wishes and circumstances, and remember that you can revoke a POA at any time. Most states will allow you to revoke and rewrite a POA without an attorney, but some states require it to be notarized again. Be sure to distribute new amended copies to all relevant parties and keep a copy for yourself as well. 

Top tips for establishing dual power of attorney

You may now feel confident and ready to get started and get this taken care of—but there are a few more things to consider before you do:

• Choose people you trust. Depending on your family dynamic, you may be tempted to make your decision based on avoiding hurt feelings or confrontation. Ultimately, however, this decision can affect the most vulnerable time of your life, so choose the best person or people for the job.
• Consider strengths and weaknesses. If you're having trouble choosing between agents, consider their strengths. Are they good with money? Are they good with deadlines? Would they take care of matters as well as you would? With a dual POA, you can delegate specific powers based on strengths.
• Make sure they understand their role. When you sit down to discuss the responsibilities of a power of attorney with your agents, make sure they fully understand their legal authority. Make it abundantly clear what the role will mean for them. Also, make sure they know what is NOT their responsibility. Make sure they know where their lane ends and the other agent's begins to prevent confusion and contention.
• Seek legal counsel. It may be tempting to try to DIY it, but a knowledgeable attorney can ensure your documents comply with state laws and fully reflect your wishes.

And perhaps the best tip of them all—start now! Don't wait until it’s too late. No one likes to think about the unthinkable too long, but it’s always better to go into the unknown with a plan. Your family will appreciate having a clear path forward when you can no longer communicate your wishes, so take the first step today to establish your power of attorney. 

FAQs

Can two people have power of attorney?

Yes, when two people have power of attorney, it is called "dual" or "joint" power of attorney. In this arrangement, each agent will have specific powers. One could be responsible for medical decisions, while the other is responsible for financial decisions. In cases where their responsibilities overlap (e.g. paying for healthcare), they may be asked to reach a consensus. 

How many powers of attorney can you have?

There's no legal limit to the number of powers of attorney you can have, but having more than two can lead to some logistical problems. For instance, if a doctor needs unanimous consent and the agents can't reach an agreement, important, time-sensitive decisions could be delayed.

Can both agents have equal authority?

They technically can, but for logistical reasons, it is better to grant one agent authority over one area (medical) and the other authority over the other (financial). You can also add a successor agent to take over in case one becomes incapacitated.

What happens if the two agents disagree?

Hopefully, your will or advance directive will be clear enough to settle any disputes about your wishes, but if two agents disagree and cannot come to a resolution on their own, they would have to take the matter to court.

Is dual power of attorney valid in all states?

Yes, a dual power of attorney is recognized in all 50 states and the District of Columbia. If there is any discrepancy between state legal requirements, the details of how the POA functions are governed by the state in which it was signed.