Attorney Compensation

In Ontario the compensation of a representative agent appointed under a Power of Attorney is generally based on a number of factors, including:

1. The time spent: The representative agent's hourly rate is typically based on the amount of time they spend performing duties under the Power of Attorney. This is usually calculated in increments of 6 minutes (0.1 hours), and the hourly rate may vary depending on the representative agent's experience, the complexity of the tasks, and other factors.

2. The complexity of the tasks: If the tasks assigned to the representative agent are particularly complex, time-consuming, or require special skills or expertise, the hourly rate may be higher.

3. The amount of responsibility: If the representative agent is responsible for managing a significant amount of assets or making important financial or legal decisions on behalf of the grantor, their compensation may be higher.

4. The customary compensation: The Ontario Substitute Decisions Act provides for a guideline compensation for a representative agent, which is currently set at 3% of the value of the assets under management, with a maximum of 3% on any income generated by those assets. Under the Act a guardian of property or an attorney may take compensation annually, monthly or quarterly in accordance with this prescribed fee scale. Currently, the prescribed fee scale also includes an allowance of three fifths (3/5ths) of 1% of the annual average value of the assets, as a care and management fee (although this last fee has been determined to be an extra fee, and is only included as part of compensation in some circumstances). However, this is only a guideline, and the representative agent's compensation may be more or less than this amount, depending on the circumstances.

It is important to note that the compensation of a representative agent should be reasonable and should take into account the time, effort, and responsibility involved in performing their duties. The grantor of the Power of Attorney may negotiate the compensation with the representative agent in advance, and any compensation arrangement should be set out in writing to avoid any misunderstandings later on.

In any case, it is recommended that the grantor of the Power of Attorney seek professional advice to ensure that the compensation arrangement is fair and reasonable, and in compliance with the Substitute Decisions Act.