How much should an agent be paid?

The difficulty of ascertaining the amount of compensation which is “reasonable” for an agent acting under a power of attorney is highlighted in Helen W. Gunnarsson, What’s a POA agent worth?, 96 Ill. B.J. 389 (2008).

Here are some the key points raised in the article:

• The established law is not clear.
• Agents may originally agree to serve for free but after serving and realizing the amount of work involved, elect to be compensated.
• Keeping track of time spent is often a hassle.
• Maintenance of detailed records (time spent and services performed) is important to justify compensation.
• Different compensation rates may be appropriate for different types of work.
• Consider negotiating fees between the principal and agent at the beginning, that is, when the POA is executed and the principal has full capacity.