[WSBAPT] POA services paid?

Thu Dec 1 16:13:15 PST 2016

We changed our language to this, after we had an aif request payment from the decedent's estate for compensation not requested over the previous 5+ years, at a total of over $40K:

"The attorney-in-fact shall be reimbursed for all costs and expenses reasonably incurred.  In addition, the attorney-in-fact shall be paid at least annually, without court approval, such compensation for services performed by the attorney-in-fact as is reasonable in the community for like services performed by an attorney-in-fact and/or a guardian of the estate."  

We have since been able to point out "at least annually" as requiring payment, if any is sought, no less frequently than once a year.

Of course, there is always a counter-argument.  One aif never took a penny for caring for her mother with dementia for 15+ years while also working (or trying to) full time.  No time for her to think about anything but what was right in front of her in any moment, so she kept no records for her time and sought no payment.  Plus, she was keeping her mother's estate intact as much as she could, in case the estate was needed for her mother's care.  We found a nice court case to support her post-death request for compensation, but still there was a horrific court battle that might have been avoided if the DPOA had been more clear.

Kate

Kate Szurek, J.D., LL.M.
kate at skagitlaw.com

Skagit Law Group, PLLC
P.O. Box 336 / 227 Freeway Drive, Suite B
Mount Vernon, WA  98273
360.336.1000
360.336.6690 (fax)
http://www.skagitlaw.com 

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John Creahan
Sent: Thursday, December 01, 2016 3:33 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] POA services paid?

I always include language allowing the AIF to be compensated. The new UPOA includes such a provision by default: "Unless the power of attorney otherwise provides, an agent is entitled to reimbursement of expenses reasonably incurred on behalf of the principal and to reasonable compensation." (RCW 11.125.120, effective January 1, 2017)

John Creahan
206-621-5848
www.cairn-law.com

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Lisa Schuchman
Sent: Thursday, December 1, 2016 2:46 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] POA services paid?

Krista,

I usually include this language in my POAs.
At least annually, my attorney-in-fact shall, without court proceedings, be entitled to receive reasonable compensation and reimbursement for costs expended.  

However, it doesn’t mean that the AIF will actually pay herself, and once the principal is dead it is hard to prove the debt without a contract. 

Lisa E. Schuchman
206-960-4212
www.lisaschuchman.com

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-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Krista MacLaren
Sent: Thursday, December 1, 2016 11:43 AM
To: wsba probate & trust
Subject: [WSBAPT] POA services paid?

Hi Folks,

I am curious whether anyone out there encourages clients to make provisions to pay their agent in the event many hours of service are required, and/or if anyone has ever made an effort to get an agent paid from an estate when it seemed appropriate.  I have not, but I am thinking about it now because I received a letter from the neighbor of a decedent who is saying she observed the POA provide hours of daily care for nine years with no remuneration whatsoever, and she wants to draw attention to it because she feels the woman was selfless and provided a great service and should receive something.  I have seen this before, and I always have thought that the agent probably needed to discuss payment with the principal when the principal was competent to enter into an agreement about it.  But there may be cases where beneficiaries would not object to payment being made.  There is a conflict of interest issue though, and I am wondering, should the attorney for the PR never bring th!
 is up, and only respond if the agent hires a lawyer to demand payment?  It just seems like that would create a conflict that may not be there if the PR wanted to take the initiative.  Of course, in this case, and perhaps often, the PR is the same person as the agent, and she herself is not asking for anything.  I know she can be paid for her time as PR.  She also receives a percentage of the estate, which could in fact be because of her years of service (and friendship) to the decedent who was single and had no children.  Just thinking about how I might help avoid this situation in the future, and whether to do anything proactive in estates with this issue.

Thanks for any thoughts or experiences you may have.

Krista J. MacLaren
Attorney at Law
Northgate Executive Center II
9725 3rd Ave NE, Suite 600
Seattle, WA 98115
(206) 523-6116
kjm.inc at me.com

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