If so, especially if the payment is significant, you may want to consider filing form T1198 Statement of Qualifying Retroactive Lump-Sum Payment.Īccording to CRA, “generally, a lump-sum payment is included in income in the year the recipient receives it. If you receive the income under an order or judgment from a court or other competent tribunal, it may be considered a qualifying retroactive lump-sum payment (QRLSP). If you are not in the business of providing POA services, the income should be reported on a T4 slip and be subject to source withholding taxes. Power of attorney fees and taxes in Ontarioįees payable to an attorney are considered taxable income. It is an important reason to make sure you speak to someone before naming them in an estate document like a POA or a will. It bears mentioning that an attorney for property or personal care is not required to act and can decline or resign. The request should be reasonable given the circumstances. There is no fee scale as is the case with an attorney for property. Specifically, the judge found that the two-year limitation period under the Limitations Act “does not apply because compensation for an attorney for property through the passing of accounts process does not constitute a ‘claim’ within the meaning of the Limitations Act, 2002.”Īn attorney for personal care can make a request for compensation to an attorney for property. The Salvation Army, 2016 ONCA 971 involved an application for compensation in 2013 for acting as an attorney as far back as 1990, 23 years prior to the request. In terms of citing a precedent for this, Armitage v. You should contact the current attorney for property to raise this with them as a starting point.Įven if it has been a long time since you acted, Audrey, there may not be a limitation period to worry about. These amounts are not guaranteed, however, and they can be decreased or even increased by the court.Īccording to the Substitute Decisions Act, compensation may be taken monthly, quarterly or annually. 0.6% of the annual average value of the assets.It is uncommon to limit or specify the compensation, so the provincial fee scale generally applies. Compensation for being a POA in OntarioĪn attorney for property is entitled to compensation in Ontario, Audrey, unless the POA document states otherwise. In other provinces, powers of attorney may be different, including representation agreements, mandates, or similar documents. These can be prepared with a lawyer, an online service or even using a free kit from the Ontario Ministry of the Attorney General. In Ontario, the two primary enduring powers of attorney are powers of attorney for property (financial matters) and personal care (health care matters). Power of attorney in Ontario, and where to get a kit These documents typically come into effect if you are sick, injured, disabled or incapacitated. More commonly, enduring powers of attorney are documents to appoint someone to make financial or health care decisions on your behalf if you are unable to do so. Or it can be for a predetermined period of time, like while you are travelling out of the country. You can have a limited POA that applies to a specific task, like selling a house or managing an investment account. Each province in Canada has different rules. Powers of attorney (POAs) are legal documents that appoint someone to make decisions on another person’s behalf. Please let me know and cite any Ontario law if it is available.
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