Legal Question in Wills and Trusts in Maryland
In the state of MD, what compensation is allowed for hours spent on paperwork and sorting through mass quantities of personal property
as a POA?
1 Answer from Attorneys
If the principal is alive, generally such services are rendered gratis without compensation. The attorney-in-fact under a Power of Attorney (POA) only has authority while the Principal is living. If the person has died, the POA is no longer valid. However, if the attorney-in-fact happens to also be the Personal Representative (PR) and handles property after someone dies, Maryland has a statutory formula for Personal Representative compensation based on the value of the total estate. There is a higher percentage for the first $20,000 of property and a lower percentage of commission for the balance. For instance, a person appointed as PR handling $20,000 worth of the decedent's property would generally be entitled to $1,800 in compensation.
An attorney-in-fact cannot simply help themselves to compensation and indeed is prevented from directing the principal's funds to themselves in most cases unless the principal expressly authorized gifts to the attorney-in-fact. In unusual circumstances one might petition for guardianship and/or seek court relief.
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