Who Pays a Power of Attorney and When

A power of attorney is not automatically paid for acting on someone's behalf. Whether they receive money depends on the agreement between them and the person who gave them the power, and on what state law allows. In most cases, a family member serving as power of attorney receives no payment unless the document itself says otherwise or a court orders it.

If the power of attorney is a professional — a lawyer, accountant, or fiduciary company — they typically charge a fee set in advance. The person who created the power of attorney document (called the principal) usually pays this fee from their own bank account or assets. If the principal has no money available, the power of attorney may be able to pay themselves from the principal's estate after death, but only if the will or trust permits it.

State law varies on whether an unpaid family member can later ask a court to award them compensation for their time and effort. Some states allow it; others do not. The safest approach is to put payment terms in writing before the power of attorney begins work.

Key Takeaways

  • Family members acting as power of attorney are unpaid unless the power of attorney document or a separate agreement says otherwise.
  • Professional power of attorneys — lawyers, accountants, or fiduciary firms — charge fees that are usually paid from the principal's assets during their lifetime.
  • Some states allow an unpaid power of attorney to ask a court for compensation after the fact, but this is uncertain and expensive.
  • Putting payment terms in writing before work begins prevents disputes and makes clear what the power of attorney will receive.
  • If the principal dies, a power of attorney can sometimes be paid from the estate, but only if the will or trust document permits it.

When a Family Member Power of Attorney Can Claim Payment

A family member who serves without pay can sometimes go to court and ask for compensation, but the rules differ by state. In states like California, New York, and Florida, a power of attorney can petition the court to award "reasonable compensation" for work done on behalf of the principal. The court looks at how much time was spent, how complex the tasks were, and what similar work costs in that area.

This route is slow and costly. Filing a petition, gathering evidence of hours worked, and attending a hearing can easily cost $2,000 to $5,000 in legal fees — money the power of attorney usually has to pay upfront. The court may award less than requested, or nothing at all if the judge decides the work was a family obligation rather than professional service.

Other states do not allow this at all. In those places, a power of attorney who was not promised payment has no legal path to claim it later. The only exception is if the principal's will or trust specifically names them as an executor or trustee and sets a fee — but that is a different role from power of attorney.

Professional Power of Attorney Fees and How They Work

When a lawyer, accountant, or professional fiduciary acts as power of attorney, they charge a fee. This is usually set in a written agreement before they begin work. Common fee structures include an hourly rate (typically $150 to $400 per hour for lawyers), a flat fee for specific tasks, or a percentage of the principal's assets (often 0.5% to 2% per year for ongoing management).

The principal pays these fees from their own bank account or investment account while they are alive. If the principal runs out of money or becomes unable to pay, the power of attorney may have to stop work or take the principal to court to be appointed as a conservator — a different legal role that comes with court-ordered compensation.

If the principal dies and the power of attorney is also named as executor or trustee in the will or trust, they can charge additional fees for that work. But the power of attorney role itself ends at death, so any payment after that point comes from a different source and under different rules.

What Happens If Payment Terms Are Not Written Down

Without a written agreement, disputes often arise. A family member may spend months managing the principal's bills, medical decisions, and property, then discover they have no legal right to payment. The principal may have intended to pay them but never put it in writing, or may have assumed family members help without compensation.

A professional power of attorney without a written fee agreement faces a different problem: they may not be able to collect payment at all if the principal later disputes the amount or refuses to pay. Courts generally require a clear, signed agreement to enforce payment against someone who did not consent to the fee.

The solution is to create a straightforward written agreement before the power of attorney begins work. This can be a separate document from the power of attorney itself. It should state the hourly rate, flat fee, or percentage, when payment is due, and what happens if the principal becomes unable to pay. Both the principal and the power of attorney should sign and date it.

Payment From the Estate After Death

Once the principal dies, the power of attorney role ends. Any payment after that point must come from the principal's will, trust, or court order — not from the power of attorney agreement itself.

If the principal's will names the power of attorney as executor, the will can authorize a fee. If the principal's trust names them as successor trustee, the trust document can set their compensation. These fees are paid from the estate or trust assets before money goes to heirs.

If the principal died without a will or trust, or if the will and trust are silent on compensation, a power of attorney who was unpaid during the principal's life has no automatic right to payment from the estate. They would have to go to court and ask for it — the same uncertain and expensive process described above.

How to Avoid Payment Disputes

The clearest way to prevent conflict is to put everything in writing while the principal is still able to make decisions. Create a separate agreement that covers payment, or add a clause to the power of attorney document itself stating whether the power of attorney will be paid and how much.

If the principal cannot afford to pay a professional power of attorney, discuss this upfront. Some professionals will work on a reduced fee, defer payment until assets are available, or decline the role. It is better to know this before work begins than to discover it later.

For family members, a written agreement prevents the assumption that work is unpaid. Even if the agreement says "no payment," having it in writing protects both sides. If circumstances change and the principal later wants to pay, they can amend the agreement.

Keep records of time spent and tasks completed, especially if payment is hourly or if the power of attorney might later ask a court for compensation. Receipts, emails, and a straightforward log of dates and hours make it much easier to prove what was done and how long it took.

State-by-State Differences in Power of Attorney Compensation

Compensation rules vary significantly by state. Some states have specific statutes that set a percentage fee for power of attorneys managing estates — for example, a percentage of assets managed per year. Other states leave it entirely to the agreement between the principal and the power of attorney, with no default rate.

A few states allow a power of attorney to claim "reasonable compensation" from the principal's estate after death, even if nothing was agreed to in advance. Most states do not. If the principal moves to a different state or owns property in multiple states, the rules may differ depending on which state's law applies.

Before taking on the role, ask a local elder law attorney or the principal's lawyer what the rules are in your state. This is especially important if the principal has significant assets or if the power of attorney work will be complex or time-consuming.

Frequently Asked Questions

Can I charge my parent for managing their bills as power of attorney?

Only if you have a written agreement in place before you start. Without one, you have no legal right to payment in most states. If you want to be paid, create a straightforward agreement with your parent that states the hourly rate or flat fee, and have both of you sign it. This protects you both.

What if my principal dies and I was never paid for my work?

You can ask the court for compensation, but success depends on your state's law and the judge's view of whether the work was a family obligation or professional service. This is expensive and uncertain. The better approach is to have a written agreement in place before you begin work, or to ask the principal's executor or trustee to pay you from the estate if the will or trust permits it.

Can a lawyer who is power of attorney charge more than we agreed to?

No. If you have a written fee agreement, the lawyer must follow it. If there is no written agreement, the lawyer can charge a "reasonable" fee, but you can dispute it and ask a court to decide what is fair. Always get a fee agreement in writing before a professional power of attorney begins work.

Do I have to pay a power of attorney if I am the principal?

You do not have to, but you can if you want to. Many family members serve without payment. If you want to pay them, put it in writing so there is no confusion later. If you cannot afford to pay a professional power of attorney, discuss this upfront — some will work on a reduced fee or defer payment.

What if the power of attorney spent money on themselves without permission?

That is a breach of their legal duty. The principal or their heirs can sue to recover the money. If the power of attorney was a professional, they can also file a complaint with the state bar or licensing board. Keep records of all transactions the power of attorney makes on your behalf.