Attorney Compensation in Nova Scotia

When you grant someone a Power of Attorney, you are giving them significant authority over your financial affairs. That responsibility can be substantial — managing investments, paying bills, filing taxes, selling property, and making financial decisions on your behalf, sometimes for years. It is reasonable to ask: can that person be paid for their work, and if so, how much?

This article explains how attorney compensation works in Nova Scotia, what the law provides by default, and why addressing the question directly in your Power of Attorney document is almost always the right approach.

The Legal Framework

In Nova Scotia, the right of an Attorney to receive compensation is governed by the Powers of Attorney Act. The default rule is straightforward: an Attorney is entitled to reasonable compensation for their services unless the Power of Attorney document says otherwise.

What counts as reasonable is not defined by a fixed rate or schedule. It is assessed based on factors including:

• The nature and complexity of the work performed
• The time the Attorney spent managing the Donor's affairs
• The size and complexity of the estate being managed
• What a professional fiduciary (such as a trust company) would charge for equivalent services
• The skill and diligence shown by the Attorney

The absence of a specific compensation provision in the Power of Attorney does not mean the Attorney serves for free. It means they are entitled to claim what is reasonable — a determination that, if disputed, would ultimately rest with a court.

How to Address Compensation in the Document

The most effective way to avoid ambiguity about compensation is to address it explicitly when the Power of Attorney is prepared. You have broad latitude in what you can specify:

Waive compensation entirely. Many family members who serve as Attorney for a parent or spouse do so voluntarily and expect nothing in return. If that is the expectation on both sides, the document should say so: "My Attorney shall serve without compensation." This prevents any future misunderstanding or claim.

Authorize reasonable compensation. If you want to leave the question open and allow the Attorney to claim what is fair, you can simply state that the Attorney is entitled to reasonable compensation consistent with the Powers of Attorney Act. This affirms the default rule without specifying a rate.

Set a fixed rate or fee. The document can specify an hourly rate, an annual flat fee, or a per-transaction fee. This approach provides certainty but may not remain appropriate if circumstances change significantly over time.

Specify a percentage. Some Powers of Attorney provide for compensation calculated as a percentage of the estate's annual income or capital value — a common approach where the Attorney is managing significant investment assets. Professional trustee fee guidelines (such as those published by the Society of Trust and Estate Practitioners) are sometimes referenced as a benchmark.

Distinguish between types of work. A more detailed document might provide different rates for different categories of work — for example, a care management fee for overseeing personal care arrangements, and a separate fee for managing financial assets. This level of specificity is more common in larger or more complex situations.

Record-Keeping and Accountability

An Attorney who takes compensation must be prepared to account for it. This means keeping detailed records of:

• The tasks performed and time spent
• All financial transactions made on the Donor's behalf
• All receipts and disbursements
• The basis for any compensation claimed

Even Attorneys who serve without compensation should keep careful records of every transaction and decision made on the Donor's behalf. An Attorney who cannot account for their management of the estate — whether paid or unpaid — is exposed to personal liability if a family member or the Public Trustee raises concerns.

The Office of the Public Trustee in Nova Scotia has the authority to review an Attorney's management of a Donor's property and can apply to court for an accounting if there is reason to believe the Donor's interests are not being protected.

The Conversation That Prevents Problems

The single most common source of family tension around Powers of Attorney is not the document itself — it is the unspoken expectations around compensation. An adult child who devotes significant time and energy to managing a parent's affairs may feel genuinely entitled to payment. Their siblings may feel equally strongly that this is a family obligation that should not be compensated. Without a clear provision in the document, these tensions have no resolution mechanism short of a court application.

The most effective prevention is a candid conversation before the Power of Attorney is signed — ideally involving all family members who may have a stake in the outcome — followed by a document that reflects what was agreed. This takes a few minutes at the time of preparation and can prevent years of family conflict.

When the Attorney Is a Professional

In some situations — particularly where there is no suitable family member, or where the Donor's affairs are complex — the Attorney is a professional: a trust company, a lawyer, or a professional fiduciary. Professional Attorneys routinely charge for their services, and their fee structures are typically disclosed at the outset. The Power of Attorney document will usually reflect the agreed compensation arrangement.

Compensation After the Donor's Death

It is important to understand that a Power of Attorney — and the Attorney's authority under it — automatically terminates on the death of the Donor. From that point, the estate is administered by the Executor named in the Will. An Attorney cannot claim compensation from the estate for work performed after the Donor's death, and cannot continue to act under the Power of Attorney once death has occurred.

If the same person serves as both Attorney and Executor, they are compensated in each role separately: as Attorney for work done during the Donor's lifetime, and as Executor for administering the estate after death.