QUESTION
Should I add a rider to POA or make a small separate agreement?
Asked on Dec 21st, 2013 on Estate Planning - Nebraska
More details to this question:
After 30 years working with a 93 year old doctor, he made me his co POA, executor & trustee for his wife. Because he pays me generously I didn't need compensation for POA. But if or when he's physically or mentally compromised, even on a temporary basis I would need to be compensated to carry out his wishes that I manage his affairs. What are my options?
11 ANSWERS
3 Awards
You should discuss it with him. He should discuss it with his estate planning attorney. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Dec 26th, 2013 at 3:57 AM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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He could amend his POA to provide for "reasonable compensation." This is somewhat flexible though it might create some "distrust" with family members who might claim that you were being "unreasonable."
Answered on Dec 24th, 2013 at 10:55 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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An executor is entitled to a reasonable fee for services rendered on behalf of the estate. The terms of the trust control whether or not the trustee is compensated for services. The agent under a POA would not be able to claim a fee for services without an agreement between the agent and the principal. You should enter into a separate agreement.
Answered on Dec 24th, 2013 at 10:55 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Under the law you are entitled to reasonable compensation for service under the POA unless it bars compensation. Under the law you are entitled to reasonable compensation for service as Trustee unless the trust instrument says otherwise, in which case you can petition the court to change it if necessary. When you serve as executor, you will be entitled to statutory compensation.
Answered on Dec 24th, 2013 at 10:54 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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You cannot request or take compensation unless the POA provides for it. There is no way to add a "rider" to a POA. This would require drafting a new POA form. Since Michigan completely changed its POA statute a year ago, it is probably best that the POA be redone, anyway.
Answered on Dec 24th, 2013 at 10:54 PM
Thomas Edward Gates
The POA, Executor and Trustee are separate roles and come into play at different times. The POA can become affective either when it is signed or when the principle is unable to handle his affairs. The Agent can be paid for services, but this option must be denoted in the POA agreement. If payment is permitted, it is the going rate for Agents performing such duties. The POA becomes void upon the death of the principle. The Executor is responsible for carrying out the wishes identified in his will. The Executor may or may not be paid for services. Again, if paid it's the going rate. Lastly, the Trustee is responsible for managing the Trust. The Trust may be revocable (Trustor must still be alive) or irrevocable (Trustor can be alive or dead). The Trustee may be paid the going rate for Trustees managing Trust. So, only the POA requires the affirmative nod for the Agent to be paid.
Answered on Dec 24th, 2013 at 10:51 PM
I would add a rider to the POA, so that there is no confusion.
Answered on Dec 24th, 2013 at 10:50 PM
2 Awards
You have no options. It is up to him to change the POA if he wants to compensate you and that supposes he still has the legal capacity to do so. You are always free to decline the appointment as agent if you feel you cannot or do not want to do it under the terms spelled out in the POA.
Answered on Dec 24th, 2013 at 10:50 PM
It should say in the trust, Will and POA that you can be compensated. You can also sign a separate contract to agree to compensate you for your work. Hire an attorney and get it done properly. There will likely be concerns about undue influence that need to be countered.
Answered on Dec 24th, 2013 at 10:48 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Have the doctor amend the POA to reflect future compensation to be paid to you in the event you need to exercise the POA.
Answered on Dec 23rd, 2013 at 10:44 PM
A contract between the two of you that sets the conditions under which you can be reimbursed and who would make the payments should be sufficient to address the matter.
Answered on Dec 23rd, 2013 at 10:43 PM