Most Powers of Attorney Are Not Paid Unless the Document Says So
A power of attorney (the person holding the authority, not the document itself) receives payment only if the document that grants the power explicitly allows it, or if a court order authorizes it. The default is unpaid service. Many family members act as powers of attorney without compensation and expect none. But if you are named as a power of attorney, or you are the person granting the power, you should know what the document actually says before assuming either way.
The rules vary by state, and the language in your specific power of attorney document controls the outcome. A document that is silent on payment means no payment. A document that permits "reasonable compensation" gives the power of attorney the right to seek it, though they may still choose not to. A document that names a specific amount or percentage locks in that figure.
Key Takeaways
- A power of attorney is unpaid by default unless the power of attorney document or a court order says otherwise.
- The document may permit "reasonable compensation," allow a set dollar amount, or authorize a percentage of assets managed — read the exact language to know which applies.
- A power of attorney who is also a professional fiduciary (a company or licensed individual) typically charges a fee set by contract or state law, separate from what the document says.
- If a power of attorney spends significant time on the role and the document permits payment, they can petition a court to set a reasonable fee if the document does not name one.
- Family members often serve without pay, but the power of attorney document should clarify this expectation in writing to avoid conflict later.
What the Power of Attorney Document Usually Says About Payment
Most standard power of attorney forms — the ones people read or get from an attorney — contain a section on compensation. Read that section word for word. If it says "the agent shall serve without compensation," payment is off the table. If it says "the agent may receive reasonable compensation for services rendered," the power of attorney can charge, but the amount is not set and must be justified later. If it names a specific amount — "$500 per month" or "2 percent of assets managed" — that is the limit.
Some documents say nothing about payment at all. In that case, state law determines the answer. Most states treat silence as "no payment unless a court orders it." A few states presume the power of attorney can charge reasonable compensation even without explicit permission in the document, but this is less common. Your state's laws on powers of attorney (usually found in the Uniform Power of Attorney Act or your state's probate code) will clarify this.
If you are creating a power of attorney document and you want the person to be paid, say so explicitly. If you want them unpaid, say that too. Vague language creates disputes later, especially if the power of attorney spends months managing complex finances or property.
When a Power of Attorney Can Charge a Fee
A power of attorney who is permitted to charge under the document can seek "reasonable compensation." What counts as reasonable depends on the work done, the time spent, the complexity of the assets, and what similar work costs in your area. A power of attorney managing a straightforward bank account for a few hours a year might justify $500 to $1,000 annually. One managing rental properties, investments, and medical decisions for a parent with dementia might justify much more.
The power of attorney does not unilaterally decide the amount. If the document does not name a specific fee, the power of attorney must either negotiate with the person who granted the power (if that person is still able to communicate) or petition a court to set a reasonable fee. Courts look at the complexity of the work, the time invested, the size of the estate, and local rates for similar services. A court will not award payment if the document forbids it, even if the work was substantial.
Professional fiduciaries — licensed companies or individuals who serve as powers of attorney for a living — operate under different rules. They typically charge according to a fee schedule set by contract or state law, and this fee applies regardless of what the power of attorney document says. If you hire a professional fiduciary, you will pay them; the document's language on compensation does not override their professional fee structure.
How Payment Works in Practice
If the power of attorney is may have access to to payment, they typically pay themselves from the assets they are managing. If they are managing a parent's bank account, they withdraw their fee from that account. If they are managing an investment portfolio, they deduct the fee before distributing funds. The power of attorney should keep clear records of what they took and why, because they may have to account for it later — especially if the person who granted the power dies and an estate is settled.
Some powers of attorney ask the person who granted the power to approve the fee in advance. Others wait until the power of attorney relationship ends (either because the person dies, recovers, or revokes the document) and then present an accounting showing the work done and the fees taken. If there is a dispute, a court can review the accounting and order the power of attorney to return money if the fees were unreasonable or not authorized.
If the power of attorney is unpaid and spends their own money on the person's behalf — for example, paying for a medical appointment or home repair — they can usually be reimbursed for those out-of-pocket costs. Reimbursement for expenses is different from compensation for time and work. Most documents that forbid compensation still allow reimbursement of actual costs.
What Happens if the Document Is Unclear or Silent
If your power of attorney document does not mention payment at all, do not assume. Look up your state's power of attorney law (search "[your state] Uniform Power of Attorney Act" or "[your state] probate code power of attorney"). If the law is still unclear, or if the power of attorney relationship is complex, consult a local attorney who handles powers of attorney. The cost of a brief consultation is far less than the cost of a dispute later.
If you are the person who granted the power and you are still able to communicate, clarify the payment question with the power of attorney in writing. A straightforward email saying "I expect you to serve without payment" or "I want to pay you $X per month for this work" prevents misunderstanding. If you are the power of attorney and the document is vague, ask the person who granted the power what they expect. If that person is no longer able to communicate, document your understanding in writing and keep records of the time and work you do, in case you need to justify a fee to a court later.
Family Members and Unpaid Service
Many adult children, spouses, and siblings serve as powers of attorney for family members without expecting or receiving payment. This is common and legal. But even in families, the expectation should be clear. A power of attorney who expects no payment should not be surprised by a bill later. A power of attorney who expects payment should not discover too late that the document forbids it.
If you are a family member serving without pay, you are still may have access to to reimbursement for out-of-pocket expenses — gas to drive to appointments, fees paid to professionals, costs of documents or certified copies. Keep receipts and ask for reimbursement as you go, rather than waiting years and hoping to be paid back. If the person who granted the power dies, reimbursement claims can get tangled in the estate settlement.
Some families agree that one sibling will serve as power of attorney and the others will contribute money to pay them, since the role takes time away from work or other obligations. This arrangement should be documented in writing and approved by the person who granted the power, so there is no confusion after they die or lose capacity.
Frequently Asked Questions
Can a power of attorney charge a fee if the document does not mention payment?
It depends on your state law. Most states say no — silence in the document means no payment unless a court orders it. A few states presume reasonable compensation is allowed even without explicit permission. Check your state's power of attorney statute or ask a local attorney to be sure.
What if the power of attorney spent a lot of time on the job and the document says no payment?
The document controls. If it forbids payment, the power of attorney cannot charge, even if the work was extensive. The only exception is if the power of attorney petitions a court and the court finds the document's no-payment clause is unfair or was signed under duress, which is rare and difficult to prove.
Can a power of attorney be reimbursed for money they spent out of their own pocket?
Yes, in almost all cases. Reimbursement for actual expenses (doctor visit copays, travel, professional fees) is separate from compensation for time and work. Keep receipts and ask for reimbursement as expenses occur, rather than waiting until the end.
Who decides if a power of attorney's fee is reasonable?
If the document names a specific amount, that is the limit. If the document says "reasonable compensation" but does not name an amount, the power of attorney and the person who granted the power can negotiate. If they cannot agree, a court can set the fee based on the complexity of the work, time spent, and local rates for similar services.
Do professional fiduciaries charge differently than family members?
Yes. Professional fiduciaries charge according to a fee schedule set by contract or state law, and this applies regardless of what the power of attorney document says. Family members are governed by what the document permits. If you hire a professional, expect to pay their standard fee.