Estate Planning – Answers About Powers of Attorney Series #5

by Bob Frie

Agents on powers of attorney are usually family members or close friends. Often people want to compensate their agents for their work: Can the agent be reimbursed for expenses and compensated for work?

“An agent can be reimbursed for feasible expenses and compensated for their work. To ensure this, the principal must include this direction in the power of attorney.” “It is best to clearly define how the Agent should be compensated, for example, you can identify fee amounts or rates to charge.”

What if my agent wants to resign?

“An agent has the right to resign in accordance to the terms and conditions in the document. The agent must notify, in writing, the principal, guardian and/or conservator, any successor agent, and any third parties who might be affected by the resignation. If the principal is incapacitated and no successor agent is available it is the agent’s responsibility to take steps to ensure that someone will take their place as agent.” “If you are incapacitated and there is no guardian, conservator, co-agent or Successor Agent, the Agent may resign by giving notice to your caregiver, another person the agent reasonably believes has sufficient interest in your welfare, or to a governmental agency having authority to protect you.”

 

 

When does a power of attorney expire?

“For a non-durable power of attorney, the power of attorney expires when the principal becomes incapacitated. A durable power of attorney expires when the principal dies and the agent has knowledge of the death. After the principal’s death, the personal representative in the will is responsible for decision making.” The principal may also revoke the Power of Attorney at any time.

Thanks to the Colorado Bar Association for this concise information.

Stay tuned to our blog for more explanations and answers to common questions on powers of attorney.