Here is some excellent advice from Ontario lawyer Donna Neff for people who act under an Enduring Power of Attorney (also known as Power of Attorney for Property). Read this article to find out what you should be reporting to Canada Revenue Agency if you have been receiving payment for your role as POA, or if you plan to receive payment for it in the future.
Click here to read the article.
Hi Lynne,
ReplyDeleteThis is an amazing blog. The information is very insightful.
As this posts contains executor compensation I would like to ask two question as a executor/trustee. The question pertains to care and management fee (2/5 of 1%).
1) This is a Ontario Estate. To make it simpler the question uses a rough amount. I have invested $100,000 with an adviser. The beneficiary will receive the funds when they are of age as outlined in the will. The mutual funds purchased through the adviser have a MER (Management Expense Ratio). Thus the capital invested is charged a management fee via the MER. This is the only fee. As the funds are managed and a MER is charged does this mean I do not collect a care and management fee as the funds are managed by the mutual fund managers? If I charge a C&M fee the capital is charged twice, so I am unsure if I can charge this. I am trying to do everything correctly.
2) If I open a direct investing account and purchase individual stocks and the stocks eventually become de-listed and/or become worthless (0) is the amount invested deducted from my compensation? The will states I am indemnified from loses so I may not have to pay out-of-pocket but could the loss be deducted from my compensation? So if I invested $5,000 and the shares eventually have a value of zero, does this amount get deducted from my compensation?
Thanks! Your blog has answered alot of my questions. It is a great resource.
Chris