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chancerhelp · Jan 24, 2016, 04:18 PM

My brother has POA for my mother. She had a serious stroke a year ago and lives currently in a Wisconsin rehab center. She has been deemed incompetent since the stroke. My brother is charging what he considers a "reasonable fee" which she did state was allowable in her POA documents. He takes 1% per month of her assets which are currently over 1 million dollars. Note that he is an attorney but this is his mother! When she is in what I call her "lucid" states which comes and goes, she is very angry that he is charging this exorbitant amount, but she doesn't have the power to do anything (except court which we all do not want to start). He complains about the amount of time he has to take from his billable attorney hours to handle her affairs (seems mostly the conversations with the insurance company). Is his monthly fee "reasonable" in this predicament?

hkstroud · Jan 24, 2016, 08:24 PM

Suggest you consult an attorney. In five years your brother will have charged your mother over fifty percent of her estate in fees.

ebaines · Jan 25, 2016, 06:59 AM

Laws vary be state, so please tell us what state your mother is residing in. But in general - your brother may be paid a fee to act as her agent only in accordance with what the PoA document allows. If the document says that he may be paid 1%/month, then legally he may collect this amount. If the PoA does not specifically state that a fee is payable, then he may not take anything. So - do you have a copy of PoA document? What does it say?

ScottGem · Jan 25, 2016, 08:00 AM

Well first, let me say I have no problem in your brother charging a fee for doing this work. You seem to feel that since its his mother, he should do it for free. And while I don't disagree with the sentiment, its only sentiment.

On the other hand, the fee does appear to be exorbitant. We are talking about $10K per month. Even a high priced lawyer is not going to charge much more than $300/hr. This means he would have to spend over 30 hours a month to manage her affairs.

So I would suggest asking for an accounting. Attorneys keep track of their time so he should be able to show how much time he spent during a typical month. If he refuses, however, then your only recourse is to go to court to have someone else appointed as conservator for your mother. At that point he can be compelled by the court to do an accounting.

In my opinion 1%/yr would be very, reasonable, even 2%. But that equates to .08 - .16% per month.

catonsville · Jan 25, 2016, 08:15 AM

For what it is worth, your brother is taking advantage of your family. Hire your own lawyer and get to court before there is nothing left.

ScottGem · Jan 25, 2016, 10:52 AM

I just noticed you said Wisconsin. So you might find this site helpful:
Powers of Attorney

It specifies that only reasonable fees can be charged unless the POA specifies an amount. And I just don't believe 1% per month is reasonable.

talaniman · Jan 25, 2016, 01:53 PM

I would have a judge review this contract, with a good lawyer on YOUR side. Consult one and see if he thinks it's reasonable.

ScottGem · Jan 25, 2016, 02:22 PM

Originally Posted by chancerhelp

(except court which we all do not want to start)

If "we all" includes your brother, then you have leverage. If he doesn't want a court to force an accounting, then he should provide you an accounting.

talaniman · Jan 25, 2016, 02:43 PM

If the POA can't be MORE reasonable, I would certainly be WILLING to go to court. Or maybe hearing that he is unreasonable from a COLLEAGUE (OP's attorney) will provoke MORE reason, and avoid court.

AK lawyer · Jan 27, 2016, 05:51 AM

Originally Posted by talaniman

If the POA can't be MORE reasonable, ...

I assume you mean the holder of the POA (the OP's brother), technically called an "attorney in fact". And it is difficult to understand how he could not know that he is charging way too much.

In times past, attorneys were allowed to charge a percentage of an estate for probate (and a POA under these circumstances is similar to that) and trust administration. I don't know that such is the case today anywhere. But if so, it would be in part to cover the cost of E & O (malpractice) insurance. One thing I would ask is whether he is insured or bonded as to his duties under this POA.

Dchdman · Jan 27, 2016, 06:09 AM

Hmm

Ok lets say your mums estate is 1m dollars and we divide that by 100 to find 1%

He is getting 10,000 Dollars a Month from the estate.

Now we will take that 10,000 and say divide it by 30 to get around what he is being paid a day , that's around $333.33 a day.

Simple fact is he " quote ( amount of time he has to take from his billable attorney hours to handle her affairs )" will not be doing this everyday.

So yes bloody oath he is ripping off the estate, specially if you mum lives for a few years to come.

This on top of the fact that I guess he is getting an equal share of the estate when she dies , you need to consult a attorney and yes I would be willing if I was you to go to court and have a Judge look over this.

catonsville · Jan 27, 2016, 09:13 AM

Bottom Line, he is lining his pocket. Put a stop to it. Sounds like your brother is some sort of "Ambulance Chaser" type of Lawyer, anything for a buck.