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When appointing decision-makers (e.g., attorneys in a Power of Attorney), the terms “jointly,” “severally,” and “jointly and severally” determine how authority is shared. Here’s a breakdown of each:
Jointly Appointed
All appointed individuals must act together for every decision. Unanimous agreement is required for any action.
Key Implications:
- Collaboration required: Decisions like paying bills or selling property demand full consensus.
- Risks:
- Delays: Disagreements or unavailability of one person can halt all actions.
- Termination: If one appointee dies or becomes unable to act, the entire appointment may lapse unless the document says otherwise.
Best for: Situations where strict oversight is critical, such as high-stakes financial decisions.
Severally Appointed
Each appointee can act independently without consulting others.
Key Implications:
- Flexibility: Decisions can be made swiftly, even if one appointee is unavailable.
- Risks:
- One person may take action without informing the other, cause conflict or mistrust.
Best for: Scenarios requiring quick decisions, such as urgent healthcare or financial matters.
Jointly and Severally Appointed
A hybrid approach where appointees can act together or independently.
Key Implications:
- Flexibility + oversight: Decisions can be collaborative or independent, depending on the situation.
- Resilience: If one appointee is unavailable, others retain full authority.
- Risks:
- Potential conflicts: Independent actions without communication may create mistrust.
- Legal clarity needed: Clear guidelines are essential to prevent misunderstandings.
Best for: Balancing efficiency and accountability, such as managing long-term financial portfolios.
Comparison Table
Aspect
Decision-Making
Termination
Risk of Delays
Best Use Care
Jointly
Unanimous agreement required
Lapses if one appointee is unavailble
High
High-stakes decisions requiring checks
Severally
Independent actions allowed
Unaffected by others’ incapacity
Low
Urgent or routine matters
Jointly & Severally
Both collaborative and independent options
Unaffected by others’ incapacity
Moderate
Flexible management of complex affairs
Liability limited by a scheme approved under Professional Standards Legislation
Disclaimer: This post contains information of a general nature only and is not intended to be used as advice in relation to a specific matter. Although every care has been taken in preparing the document, it may not be accurate or complete, particularly in the context of specific circumstances. MJM Lawyers disclaims responsibility for any errors or omissions.
