When you grant a Power of Attorney, the person you appoint — your Attorney — may be entitled to compensation for the work they do on your behalf. Understanding how this works helps you make informed decisions when drafting your Power of Attorney.
The Default Rule
Under Nova Scotia's Powers of Attorney Act, an Attorney is entitled to reasonable compensation for their services unless the Power of Attorney document specifies otherwise. “Reasonable” is not defined by a fixed rate — it is assessed based on the nature and complexity of the work performed, the time involved, the size of the estate, and what a professional fiduciary would charge for similar services.
How to Address Compensation in the Document
Your Power of Attorney can modify the default rule in any direction:
- Waive compensation entirely — “My Attorney shall serve without compensation.” Many family members serving as Attorney choose this.
- Set a fixed rate — for example, an annual flat fee or an hourly rate.
- Specify a percentage — a percentage of the estate's annual income or capital value, consistent with professional trustee fee guidelines.
- Refer to a published fee schedule — some Powers of Attorney reference the compensation guidelines published by the Society of Trust and Estate Practitioners (STEP).
Record-Keeping Requirements
An Attorney who receives compensation must keep detailed records of the work performed and the time spent. If ever called upon to justify their compensation — by a court, a family member, or the Public Trustee — they will need those records. Even Attorneys who serve without compensation should maintain records of all transactions and decisions made on the Donor's behalf.
Practical Advice
If you are appointing a family member who is not a professional, the compensation question is worth discussing openly before the Power of Attorney is signed. Unexpressed expectations about payment — in either direction — are a common source of family tension. A clear provision in the document removes the ambiguity.