Written by Benjamin Kingsley

Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.

Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.

In general, an individual serving as someone’s power of attorney (POA) can be compensated for their services, but there are several important considerations to keep in mind. The ability to receive payment and the amount of compensation often depend on the specific terms outlined in the POA document, state laws, and the nature of the duties performed.

Many POA documents explicitly state whether the agent (the person appointed as POA) is entitled to compensation. If the document is silent on this matter, state laws typically allow for reasonable compensation. However, what constitutes “reasonable” can vary and may be subject to court interpretation if disputed.

It is crucial to note that regardless of whether an agent receives payment for their services, they still owe a fiduciary duty to the principal (the person who granted the POA). This fiduciary duty is a legal and ethical obligation to act in the best interests of the principal at all times. The agent must manage the principal’s affairs honestly, responsibly, and in good faith, avoiding any conflicts of interest or self-dealing.

If an agent does receive compensation, they must be particularly careful to document their actions and expenses meticulously. This helps demonstrate that they are fulfilling their fiduciary duty and not taking advantage of their position for personal gain. Agents should keep detailed records of the tasks they perform, the time spent on each task, and any expenses incurred on behalf of the principal.

Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.

Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.