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Compensation for Attorneys for Property? Compensation for Attorneys for Personal Care? – Part 1

Persons who are acting under a Power of Attorney for another, whether it be a Continuing Power of Attorney for Property and/or a Power of Attorney for Personal Care, often are uncertain what, if any, compensation they are entitled to for the work they do acting under the Power of Attorney. As it turns out, both an Attorney for Property, and an Attorney for Personal Care are entitled to (but of course in their discretion are not required to) charge for their services. However, the compensation is quite different, and its calculation is quite different. I will deal here with compensation that any individual acting on behalf of another under a Continuing Power of Attorney for Property is entitled to charge. The next time you hear from me I will deal with compensation that may be charged when you are performing services for an incapable person under a Power of Attorney for Personal Care.

Describing the compensation that may be charged under a Continuing Power of Attorney for Property is the easy one. Under the authority of Regulations enacted by the Province of Ontario an Attorney (or Guardian) for property is entitled to charge for his or her services:

  1. 3% on capital and income received (which includes all of the assets of the person you are managing the affairs of including the real estate and vehicles owned by him or her, and his or her bank and other investment balances when you first take over management of his or her affairs),
  2. 3% on capital and income disbursements, and
  3. 3/5ths of 1% of the annual average value of the assets of the person whose affairs you are managing.

Three other points.

One, if there are two or more attorneys acting under the same Power of Attorney, they must share the compensation described above – no double charging of fees.

Two, be aware that a court may be called on to review your accounts and allow or reduce the amount of compensation. Therefore, it is very important that you keep good records of all transactions involving the property or accounts of the person whose affairs you are managing. More on this at a later date.

And three, in the case of any doubt or question, seek professional advice before acting.

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