Serving as an agent (or Attorney in Fact) with power of attorney in New Jersey is a decision that comes with great power and responsibility. The agent must act on the principal’s behalf and will be held to the highest standard of loyalty and duty under New Jersey law. For serving, agents are almost always authorized to receive some form of compensation. Exactly how much are agent with power of attorney fees in New Jersey? This is a question both principals and agents frequently ask.
In this relationship, the principal sets the terms. If the document has not been drafted, the principal can state the compensation (such as a specified hourly rate), provide a flexible term (such as “reasonable”), or specify that the agent is to receive no compensation at all. If the power of attorney in question has not been drafted, the above and many more compensation terms are possible with the help of an experienced New Jersey estate planning attorney.
More often then not, people ask this question after the fact. If the power of attorney has been signed, the first place to look is the document. There is almost always a clause stating how the agent is to be compensated. In most cases, the principal provides for flexible compensation, such as “reasonable.” This provides the flexibility in the case the Agent has to do extraordinary work, such as managing all the principal’s affairs while in a coma, all the way to simple actions, such as paying the mortgage while the principal is traveling abroad.
In New Jersey, if the principal has not specifically stated the compensation, the agent is not entitled to a fee without the appropriate Court’s approval. The agent can apply for, and the court may award “reasonable” compensation-but is not required to do so. “Reasonable” is a difficult standard to nail down, as judges’ opinions differ based on county and circumstance. We will provide examples of what reasonable looks like as new opinions are published on our blog.
If you have questions about agent and power of attorney fees in New Jersey or any other estate planning concerns contact our office for a free consultation.
Peter Klenk is the founding member of Klenk Law, a seven attorney boutique estate planning law firm. We serve clients in Pennsylvania, New Jersey, New York, Minnesota and Florida. Peter Klenk received his Masters in Taxation LL.M. from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
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Like another reviewer, I contacted Peter through his website using the free consultation link, for a question regarding PA inheritance taxes. The question was quite technical and difficult to explain, and the answer was nowhere to be found on the web. Peter grasped precisely what I was asking, and provided a clear, helpful response (with a touch of humor) the very next day.
Peter Klenk & Associates is my go-to firm for estate planning and advice in probate and estate administration. Peter and his attorneys are top-notch and exceptionally responsive. Peter has the knack of being able to explain extremely complex tax and estate planning issues in a manner that clients are easily able to understand and comprehend allowing them to confidently make important decisions.
I was referred to Peter after my divorce to put documents together to protect my assets. He suggested a number of documents that would help protect my children and their future. Also, he put together wills, power of attorney and living wills. I initially spoke with him on the phone, he took 30-40 minutes to understand my situation and explain the benefits of having such documents. After a week or two, I met with him in his office and signed the documents. Everything else was remote phone calls and emails. He re-explained these documents and what whom to share. I am in good hands.
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Klenk Law is an exceptional practice. Their fine lawyers and staff team up to produce excellent results for their clients. They excel at explaining the often cryptic laws and policies that govern estate planning right down to the complexities of the various "trust" frameworks. Peter himself manages each client together with his great team, and he has a rare quality to be both a walking encyclopedia of planning minutia and also one of the most likable lawyers I have ever had the pleasure of dealing with. He is truly generous in intellect and in his personal approach to getting the "big picture" for complex family structures. I trust him implicitly to help me make the right choices for the future. In short, Klenk Law is a gem of a firm.
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