Legal Question in Wills and Trusts in Illinois
My mother is no longer able to handle her affairs. I have taken on the duty of power of attorney as of October 2009. Paying bills, maintaining her home and dealing with her medical and nursing home needs require both considerable time and money. Is there a formula or accepted method to help defray these costs?
1 Answer from Attorneys
Regarding costs: As your mother's Agent, you should be paying her expenses with her money (not yours).
Regarding your time: Most Powers of Attorney for Property specifically provide for "reasonable compensation" from the Principal (in this case, your mother) to an Agent (in this case, you). However, most Powers of Attorney for Health Care do not. Review your documents to determine if compensation is contemplated. In any event, I encourage you to keep a journal of all time that you spend in connection with your role as Agent under a Power of Attorney as well as all expenses incurred, including all automobile usage. For each entry, record the date, the amount of time spent, and the activity performed. Be sure to update this journal regularly (i.e., its best if you update this daily, as you perform work). If you compensate yourself, you may ultimately be called upon to prove the validity of such compensation to a Court, and such records would be very helpful in that process.
Nowadays, a safe hourly wage for "reasonable compensation" is about $25. Feel free to charge below that.
Feel free to call me if you'd like to discuss this or other matters. I won't charge for the phone call.
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