compensation for family member who has power of attorney

Whether an attorney-in-fact receives compensation is entirely up to the principal. If, for example, you grant your child health care power of attorney in case you get ill and want someone to interact with your physicians for you, no payments or salary are usually involved.

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Can a power of attorney be given to a family member?

Payments Whether an attorney-in-fact receives compensation is entirely up to the principal. If, for example, you grant your child health care power of attorney in case you get ill and want someone to interact with your physicians for you, no payments or salary are usually involved.

Are We entitled to compensation under the power of attorney?

 · What is a reasonable compensation for an agent with power of attorney? This is a difficult issue and depends in large part on whose eyes are doing the beholding. First, let’s be clear about terminology. There is a huge difference between “compensation” and “reimbursement.” Reimbursement is more akin to a short-term loan by the agent.

What is a power of attorney for finances?

If you’re concerned about other family members, it’s best to talk with them first and come to an agreement on the proper compensation. But the Medicaid agency may still object to the …

What are the benefits of a power of attorney for parents?

Under the Substitute Decisions Act, 1992, S.O. 1992, c. 30 (“S.D.A.”), a guardian of property or an attorney under a PoA may take compensation annually, monthly or quarterly in accordance …

How much does a Power of Attorney get paid in Ontario?

3%If the compensation is not addressed in the PoA, the attorney can apply to the Court to be compensated. Currently, the general rule (which can be varied) is that compensation will be 3% of all capital & revenue receipts, 3% of capital and revenue disbursements, and 0.6% for annual care.

What are the disadvantages of being Power of Attorney?

What Are the Disadvantages of a Power of Attorney?A Power of Attorney Could Leave You Vulnerable to Abuse. ... If You Make Mistakes In Its Creation, Your Power Of Attorney Won't Grant the Expected Authority. ... A Power Of Attorney Doesn't Address What Happens to Assets After Your Death.More items...•

Can a Power of Attorney transfer money to themselves UK?

Can a Power of Attorney gift money to themselves (UK) or family? Yes, however, as one might expect, there are a number of rules which must be complied with and strict limits to observe if you have appointed either an attorney or a deputy.

What three decisions Cannot be made by a legal power of attorney?

You cannot give an attorney the power to: act in a way or make a decision that you cannot normally do yourself – for example, anything outside the law. consent to a deprivation of liberty being imposed on you, without a court order.

What are the benefits of having a power of attorney?

Putting in place a power of attorney can give you peace of mind that someone you trust is in charge of your affairs. If you're aged 18 or older and have the mental ability to make financial, property and medical decisions for yourself, you can arrange for someone else to make these decisions for you in the future.

Can a power of attorney spend money on themselves?

So, a property and financial Power of Attorney can give themselves money (with your best interests in mind). But you may be concerned about them borrowing money from you, or giving themselves a loan. The answer is a simple no. Your interests clearly aren't best served with someone borrowing money from your estate.

What expenses can power of attorney claim?

You can only claim expenses for things you must do to carry out your role as an attorney, for example:hiring a professional to do things like fill in the donor's tax return.travel costs.stationery.postage.phone calls.

Can a power of attorney gift money to family?

Yes, a property and financial power of attorney agent can make limited monetary gifts on behalf of the donor to others. However, it's important to remember that gifts must only be made if it is in the best interests of the donor and should be in line with the donor's financial needs.

What is a power of attorney?

A power of attorney is nothing more than a special kind of legal document that grants someone else the legal authority to act on your behalf. A power of attorney is not a job, a position or a career. Rather, it describes the relationship between two people. Some powers of attorney include payments or salaries, while others do not. Talk to a lawyer in your state if you need legal advice about how powers of attorney work and your state's requirements.

What is an attorney in fact?

The attorney-in-fact's powers are determined by the type of power of attorney you grant, and can be very broad or very limited. Once you grant person power of attorney, that person becomes your attorney-in-fact, but that does not mean the person is a lawyer. The title "attorney-in-fact," "agent," or "power of attorney" only means ...

What can an agent do?

An agent can do anything the principal allows her today, such as conduct business with the principal's bank, buy property in the principal's name or make health care decisions when the principal is unable to do so. Advertisement.

Can an agent use his own money for power of attorney?

Self-Payments. While some agents receive a salary or payment from the principal in consideration for performing the duties of a power of attorney, all agents are limited in what they can do with the principal's property. If, for example, you grant your agent the right to handle your finances, the agent cannot use your money for his own financial ...

Does an attorney in fact get paid?

Whether an attorney-in-fact receives compensation is entirely up to the principal. If, for example, you grant your child health care power of attorney in case you get ill and want someone to interact with your physicians for you, no payments or salary are usually involved. On the other hand, if you appoint your attorney to look after your affairs by granting her power of attorney over your finances, the attorney probably won't do so unless you pay her a salary.

How to address double compensation?

One way of addressing double compensation is to include specific instructions in your Will and/or Power of Attorney. Designating someone as your attorney under PoA or as your Executor is not an easy task, just as it is not an easy task to act as an attorney or Executor. Taking extra care in planning your Will and Powers ...

What is a POA in Ontario?

Acting as an attorney under a Continuing Power of Attorney for Property (PoA) for an incapable person or as the Executor of an Estate, can involve considerable time and effort. In recognition of the time spent and the care taken to manage an incapable person’s property, or to administer an Estate, Ontario laws provide that compensation (or an allowance) may be payable.

How often can a guardian of property take compensation?

1992, c. 30 (“S.D.A.”), a guardian of property or an attorney under a PoA may take compensation annually, monthly or quarterly in accordance with a prescribed fee scale.

Can an executor get compensation?

While compensation may be available to attorneys under Power of Attorney and Executors, it is by no means guaranteed. The work done by an attorney or an Executor has to warrant compensation, and the quantum of compensation, if any, can change accordingly.

Does being an executor guarantee compensation?

It is important to note, however, that being an attorney under PoA or an Executor does not guarantee compensation. In the 2013 case, Aber Estate, 2013 ONSC 6363, Justice Carole Brown confirmed that the Court, in considering compensation, must be satisfied that compensating the guardian of property or the attorney under PoA based on the prescribed fee schedule would be fair and reasonable. This is the same governing principle that exists in determining an Executor’s compensation.

Is there a fee scale for an executor of an estate?

Furthermore, the fee scale is subject to any specific instructions with respect to compensation that may be contained in the PoA document itself. An Executor for an Estate may also receive compensation. Unlike the compensation for attorneys under POA, there is no prescribed fee scale set out in the legislation.

Is there a fee scale for a POA?

Unlike the compensation for attorneys under POA, there is no prescribed fee scale set out in the legislation. Instead, section 61 of the Trustee Act, R.S.O. 1990, c. T.23, simply states that “ [a] Trustee, guardian or personal representative is entitled to such fair and reasonable allowance for the care, pains and trouble, ...

What is a power of attorney?

Powers of attorney are an integral part of a client’s larger estate plan. When discussing attorneyship under a power of attorney, you, as the drafter of the document, should be proactive and address the issue of compensation with your client, as the current method for calculating attorney compensation in many jurisdictions in Canada is unclear at best.

When drafting a power of attorney, should you address compensation?

To avoid disappointment and disputes , and to ensure that your client’s intentions regarding compensating are fulfilled , it may be prudent to specifically address compensation when drafting the power of attorney.

What is the difference between an executor and an attorney?

There is an important distinction between calculating compensation of an executor versus that of an attorney (a financial agent who has authority over a person’s money) in that an executor’s role ends once the estate administration is completed, while an attorney may work for years in managing an incapacitated person’s estate.

Which provinces have proactively introduced legislation to provide greater clarity when calculating attorney compensation?

Some provinces, Ontario for example, have proactively introduced legislation to provide greater clarity when calculating attorney compensation. Other provinces, such as Alberta, provide little in the way of legislative guidance.

Is the Alberta Law Reform Institute working on the implementation of legislative reforms regarding trustee compensation?

It should be noted that the Alberta Law Reform Institute is currently working on the implementation of legislative reforms regarding trustee compensation. For further information, please see the Uniform Trustee Act, which was approved by the Uniform Law Conference of Canada in 2012.

Power of Attorney: The Basics

At its most basic, a power of attorney is a document that allows someone to act on another person’s behalf. The person allowing someone to manage their affairs is known as the principal, while the person acting on their behalf is the agent.

Why Do You Need a Power of Attorney?

A power of attorney allows someone else to take care of your parent’s affairs. It can be temporary, for example paying bills while someone is on a long vacation, or lasting, such as making medical decisions after a car accident. As parents get older, it makes sense to be prepared for health issues that may mean they need help.

How to Choose a Power of Attorney

Choosing someone to act as a power of attorney is a critical decision. The agent can act on behalf of your parent, so it must be someone your parent trusts and is comfortable with. It should also be someone willing to discuss options and listen to your parent’s wishes and desires.

Setting Up a Power of Attorney For an Elderly Parent

It’s important to understand the basics of a power of attorney before you set one up. Read this guide carefully and look for other information from trusted sources such as government departments. Many states have elder law specialists available to give free or low-cost advice to seniors.

Frequently Asked Questions

The first step to getting power of attorney over an elderly parent is to research powers of attorney, understand how these documents work in your state and the scope of available powers. Talk to your parent so they understand why you want to take this step and the benefits and drawbacks of the action.

What is a power of attorney?

Definition. A power of attorney is a legal power given to a person (called an agent) by the maker (the person giving the powers to the agent). A power of attorney can be broad in nature, specific or related only to health care.

Do power of attorney get paid?

Regardless of which type of power of attorney you give someone, they are not generally paid to be your agent.

Does an agent receive compensation for acting on behalf of the maker?

An agent does not generally receive payment for acting on behalf of the maker. As a rule, a person only gives someone they trust implicitly, such as a family member or spouse, power of attorney. Occasionally an attorney will be given power of attorney and will naturally be compensated for her time when acting as a power of attorney.

Can a power of attorney be paid to be a mortgage agent?

Regardless of which type of power of attorney you give someone, they are not generally paid to be your agent.

Can a power of attorney make health decisions?

Depending on the type of power of attorney used, the agent may be able to act in all legal transactions, only a specific transaction or only make health care decisions. Read More: Risks of a Financial Power of Attorney.

Why is a durable power of attorney important?

This is important even if a durable power of attorney has been granted because it enables the individual to still see themselves as part of the process of resolving financial difficulties, which goes a long way toward maintaining a degree of dignity within the individual.

When can a power of attorney spring?

Many individuals sign a power of attorney form with conditions attached that only allow for the power of attorney to spring when certain life situations occur, such as diagnosis of dementia or other such ailments.

Can a visiting relative pay bills?

It might be that a visiting relative has found reminder letters to pay telephone and electricity bills. The appointed relative will have to discreetly go through any financial records present in the elder’s home to find out if bills are being paid with the correct amount. The first step in determining whether a loved one needs assistance is to investigate their current situation.

Should caregivers get involved in foreclosure?

Many times, simply explaining concerns about possible credit collections or even foreclosure can be enough to persuade a loved one to allow you to help them.

Do families bring up financial issues?

Most families hate to bring up financial matters with family members who have been predominantly providers. When that day comes and relatives feel that their elder is losing control of finances, a lot of dialogue amongst family members takes place before the subject is broached with the elder concerned.

Can a loved one manage their own affairs?

But even if a loved one is able to maintain a certain degree of independence, live on their own and manage their own personal affairs, they might not be able to effectively manage their legal and financial affairs in a manner they are accustomed to.