A Durable Power of Attorney ("DPOA") is a legal instrument in which a principal can designate a person as agent to act for the principal. Although the Trustee Act is silent on the quantum of compensation, a compensation fee scale has evolved at common law (i. e., through cases decided by the Courts) over the years: 2. ยง 17-114 - Reimbursement for expenses; compensation. Some of those circumstances include: If you have been designated as the power of attorney for a principal, and someone is challenging your right to act through a conservatorship, it is recommended you consult with a power of attorney lawyer to protect and enforce your rights. The recent opinion of Judge Herron of the Orphans' Court of Philadelphia County, Bitschenauer, Incapacitated, 3 Fiduc. The document may also allow you to benefit personally from transactions you conduct for your mom. How to Appoint a Power of Attorney. If you are managing all of the principal's property, it may be advisable to consult with a lawyer for specific advice about what is necessary to carry out your duties and protect the principal's property. Any fee estimate you gave in advance.
Ultimately, however, that decision is up to you. Provides a clear answer: (1) Unless the power of attorney otherwise provides, an agent is entitled to reimbursement of expenses reasonably incurred on behalf of the principal. I am an agent under my mom's power of attorney.
In addition, because you are acting for someone else, you must keep careful records of what you do with the principal's property. Is it siblings who might think you're taking too much of their rightful inheritance, or the Medicaid agency, which might treat the payments as a transfer of funds rather than payment for services? A power of attorney is a legal document that permits the creator of the document (known as the "principal") to name one or more agents (or "attorney(s)-in-fact") to act for him or her. "Reasonable" is also the default compensation when no term has been specified, or when the court determines the document is ambiguous. If they don't accept it, suggest mediation. An attorney may be disentitled to compensation where the attorney fails to keep proper accounts and was grossly indifferent to his/her fiduciary obligations. The monitor can request information from the agent at any time. I've worked with and known Peter Klenk and his associates for years. Without an agreement ahead of time, you might not be entitled to compensation for acting under your friend's durable power of attorney. Being someone's attorney-in-fact is a huge job, and you cannot afford to evade any of your responsibilities since someone's livelihood and life may be at stake. If the agent is a professional fiduciary, they usually set forth a fee structure for their work. This is a difficult issue and depends in large part on whose eyes are doing the beholding. Unlike the compensation for attorneys under POA, there is no prescribed fee scale set out in the legislation. These could include matters such as paying bills, filing insurance, signing paperwork, conveying real estate, etc.
Principals often opt for durable powers of attorney since these types of power of attorney can prevent delays in decision-making if the principal becomes incapacitated in the future. This advice provided me with the information I required to progress the case to my advantage. An agent named in a power of attorney is entitled to reimbursement of expenses reasonably incurred on behalf of the principal unless the power of attorney provides otherwise. Answered my question quickly and referred me to a colleague that could handle my problem. Fortunately, Section 709. If the document has not been drafted, the principal can state the compensation (such as a specified hourly rate), provide a flexible term (such as "reasonable"), or specify that the Agent is to receive no compensation at all. Jim Schuster, Certified Elder Law Attorney. Powers of attorney (POAs) are legal documents that appoint someone to make decisions on another person's behalf. However, it is prudent that attorneys keep proper records to prove that expenses were properly incurred on behalf of the incapable person and that compensation was taken according to the fee schedule. You might not need Medicaid now. However, you may want to include them in your will, especially if they might spend much of their own time caring for you. You may, however, need or want additional legal advice or representation. 3/5 of 1% of the annual average value of the assets under administration as a 'care and management fee. ' To avoid confusion or other problems, talk with the principal to make sure you are not working at cross purposes.
When you serve as a fiduciary, it's important to keep detailed records explaining how you acted in that role. Instead, discuss your concerns with your lawyer, who can suggest other ways to meet your needs and objectives. If the neglects are not dishonest the executor cannot be deprived; however, the amount of compensation received might be influenced. Once an agent, attorney-in-fact, or person given authority to act on behalf of the principal accepts their appointment, they become responsible for acting on behalf of the principal. It is very important that you keep good records of your actions under the power of attorney. I did the majority of the hands-on care of all the animals with supplemental help. In effect, you can step into his or her shoes and take whatever investment and spending measures that the principal would take himself or herself. As with many things in the realm of family finances, communication up front can solve a multitude of problems. We were well satisfied and pleased that we had Peter to guide us.
An overseas military deployment or even a prison term might be a reason to appoint a POA at home. Here are some of the "don'ts" of being a general power of attorney: Here are some of the "don'ts" of being a medical power of attorney: Power of attorney abuse is a real problem.