While creating a power of attorney is typically affordable, additional costs can arise once it takes effect. Discover what to expect for POA fees and related expenses in Keystone’s guide.
A power of attorney (POA) is a legal document that authorizes a person (called the agent or attorney-in-fact) to act on behalf of another individual (called the principal) in specific medical, financial, or legal matters.
For principals, the everyday benefits of a well-drafted POA often far outweigh the typically minimal costs of creating one. A POA ensures that a reliable person chosen by the principal can step in to manage financial obligations, legal matters, or medical care if the principal loses the mental capacity to act on their own.
Consider an elderly individual who has executed both medical and financial powers of attorney and then suffers a stroke, temporarily leaving them unable to communicate or make sound decisions. The family may be concerned about unpaid insurance premiums or the need for urgent medical consent. Because the principal has designated a financial agent and health care agent, the former can immediately handle insurance payments, and the latter can consent to necessary treatments.
Without these powers of attorney in place, insurance coverage could lapse, leaving the principal personally responsible for potentially thousands — if not tens of thousands — of dollars in medical costs. Similarly, without a health care agent, delays in consent could pose life-threatening consequences.
In this light, even using a free power of attorney template is better than having no POA at all — and creating a DIY power of attorney could theoretically cost nothing. That said, if you can afford professional legal assistance, having a lawyer prepare your POA is strongly recommended.
Power of Attorney: Price Breakdown
The cost of creating a power of attorney is the primary expense most individuals will face. That said, additional costs can arise once the POA takes effect — such as agent compensation or legal fees related to disputes.
The sections below provide a detailed overview of what you can expect when it comes to power of attorney costs.
Cost of Power of Attorney Document
The cost of preparing a power of attorney often depends on who drafts it, the time and effort required, and the level of customization involved.
A POA you prepare yourself or using an online template will generally cost significantly less than one prepared by a qualified attorney. Even so, professionally drafted POAs tend to be affordable and can provide important legal protections that DIY forms may lack.
Here is a rough breakdown of power of attorney costs based on common preparation methods:
Method of Preparation | Total Estimated Cost |
DIY power of attorney | $0 – $125 |
Professional document preparation service | $75 – $350 |
Hiring an estate planning lawyer | $350 – $500 or more |
The sections below explore the different options for creating a power of attorney (POA) and the associated costs of each method in detail.
DIY Powers of Attorney
Do-it-yourself (DIY) power of attorney forms and templates typically cost less than $75, and many free forms are also available online. You can search for the appropriate form, complete it, and print it yourself.
Once the form is completed, it must be properly executed. This generally requires signing the POA in the presence of a notary public or two witnesses. If you choose notarization, it can add approximately $10 to $50 to the total cost of your POA.
Here are links to free POA forms:
- Advance Health Care Directive (*includes a POA for health care)
*Both of the forms above are PDFs, which can either be filled out using a document preparation application or printed and completed by hand.
While free POA forms and templates rarely allow principals to fully customize the terms of the document, low-cost options may offer limited customization. For principals with straightforward needs, modest finances, and no major health concerns, low-cost or free forms may be sufficient to achieve their objectives.
Professional Document Preparation Services
Professional document preparation services typically charge between $75 and $350 to draft a power of attorney. Some services include remote online notarization (RON) as part of an all-in-one POA package, while others may charge an additional $10 to $50 for notarization.
It’s important to understand that document preparation services do not provide legal advice, and the documents these services prepare can be of questionable validity.
These services are useful if you know your needs and goals for the POA and want to avoid the higher costs of hiring an attorney. However, they may not be appropriate for principals with complex situations or who require highly customized POAs.
Hiring an Estate Planning Lawyer
An estate planning attorney may charge anywhere from $350 to $500 to create a power of attorney, depending on their pricing structure. Some attorneys offer flat rates for POAs, while others charge hourly rates within the same range. Many attorneys also provide comprehensive estate planning packages that include both financial and medical POAs.
When financially feasible, having a POA drafted by a qualified attorney is often the best option. A professionally prepared POA can prevent future disputes over its validity or an agent’s authority. It also helps ensure the document fully meets the principal’s financial, legal, and medical needs, potentially avoiding the more expensive option of a conservatorship if the principal loses capacity.
This is a scenario where a relatively small upfront investment can save significant costs and stress down the road. A well-drafted POA is less likely to be challenged, and since POA disputes are usually far more expensive than document preparation, professional drafting can protect both the principal and the agent.
Agent Compensation
An agent’s compensation under a power of attorney depends on whether they are a professional or non-professional, as well as the specific terms of the POA.
Professional fiduciaries — such as accountants or attorneys — may charge their standard hourly rate (typically $100 to $500) or 1% to 3% of the total assets managed. Non-professional fiduciaries — such as family members or friends — usually charge less.
A POA may explicitly specify whether an agent can be compensated or forbid it entirely. If the document is silent on compensation, agents may collect “reasonable compensation for services rendered” and “reimbursement for reasonable expenses incurred” per California law.
Agents who intend to receive fees should maintain detailed records of all tasks, hours worked, and expenses to justify their compensation if it is challenged.
Cost of Power of Attorney Disputes
Power of attorney disputes can significantly increase the overall cost of a power of attorney — though not all POAs result in disputes. When they do occur, resolution can often run into tens of thousands of dollars.
POA disputes typically involve questions about the validity of a POA or alleged misconduct by an agent. Resolving them almost always requires legal counsel, and costs increase with the complexity of the dispute. Litigation is generally more expensive than an out-of-court settlement.
If you win at trial, you may be able to recover attorney’s fees and costs from the opposing party, but payment is never guaranteed. Agents found to have committed POA misconduct may be held personally liable, potentially paying damages and penalties. Although agents may face additional consequences, such as removal from their role, courts rarely impose a criminal penalty for power of attorney abuse.
What Factors Affect Power of Attorney Costs?
Several factors can influence power of attorney costs. For example, if an agent is expressly authorized to sell the principal’s real estate and is directed to carry out sales, the time and effort required to fulfill their duties may increase substantially. As a result, the overall costs related to the POA may also rise.
The table below highlights some of the most common factors affecting POA costs and explains how they may influence the total expense.
What Factors Affect POA Costs? | How Are POA Costs Affected? |
Legal services and attorney fees | Having a POA prepared by an attorney can increase the cost of preparation, particularly when the document is more complex. |
Complex or customized POA documents | The more complex or customized a POA is, the more it will typically cost to create. However, these price increases are usually modest and rarely exceed a few hundred dollars. |
Agents performing extraordinary or time-consuming duties | If an agent must devote substantial time or effort to carrying out their responsibilities, the overall cost of the POA may increase — especially if the document allows the agent to receive compensation. |
Invalid or defective POA documents | POA documents that are invalid or defective — for example, those that were forged or improperly executed — may be challenged. These challenges can dramatically increase costs, sometimes by tens of thousands of dollars. Challenging a POA constitutes a legal dispute and typically requires the involvement of an attorney. A lawyer may need to investigate the circumstances, prepare a petition, and represent you in court. Because these tasks require significant time and preparation — and attorneys often charge a retainer plus an hourly rate — it is important to discuss potential costs before pursuing a dispute to determine whether doing so is in your best interest. Invalid or defective POAs may also lead to the need for a conservatorship if the principal lacks the legal capacity to create a new POA. Conservatorships must be established through the court and can be expensive to set up, particularly if they are contested. |
POA Misuse | Agents who misuse their authority, benefit themselves at the principal’s expense, or mismanage the principal’s assets should be held legally accountable. However, doing so typically requires legal action. When allegations of POA abuse are brought, the matter effectively becomes a POA dispute. As a result, an attorney is usually necessary to help navigate the legal process and represent your interests in court. Although taking legal action can be costly, it may be the only way to recover assets that were misappropriated by the agent and potentially obtain damages as well. In many cases, a successful recovery offsets the costs associated with the dispute — and in some situations may even result in additional financial recovery. Furthermore, if you prevail at trial, you may be able to recover attorney’s fees and legal costs from the opposing party. |
When Is a Power of Attorney Lawyer Necessary?
A power of attorney lawyer may not be necessary when creating a POA, but their services can become essential if problems arise after the document is executed.
Most legal disputes involving POAs relate to either the validity of the document or the conduct of the attorney-in-fact.
Examples of situations where the assistance of a POA lawyer may be helpful include:
- An agent is siphoning money from the principal’s bank accounts
- The principal was coerced into signing the POA
- An agent sold the principal’s property without proper authorization
- The principal lacked legal capacity when creating the POA
- An agent made risky or unauthorized investments using the principal’s funds
- The POA was not properly executed before a notary or two witnesses
In situations like these, legal guidance may be necessary to protect the principal’s interests and determine the best course of action.
How Much Does a Power of Attorney Lawyer Cost?
The cost of hiring a power of attorney lawyer depends largely on the attorney’s pricing structure. There is no universal fee for POA attorneys, as costs vary depending on the complexity of the dispute and the services required.
Many attorneys charge a retainer along with an hourly rate, which typically ranges from $350 to $500 per hour. In rare cases, an attorney may agree to a contingency fee arrangement, where the client pays no upfront or hourly fees and the lawyer instead receives a percentage of the financial recovery if the case is successful.
Common pricing structures for power of attorney lawyers include:
- Retainer + hourly rate: The most common structure. Clients pay an upfront retainer and are billed hourly for work performed. If the case results in financial recovery, the client generally keeps the full amount.
- Contingency basis: Less common for POA disputes. The attorney collects a percentage of the recovered funds instead of charging upfront fees.
- Flat rate: Rare in POA disputes because the time required to resolve these matters can be unpredictable.
- Hybrid arrangement: A combination of two or more pricing models, such as a reduced hourly rate paired with a contingency component.
While the cost of hiring a lawyer may initially seem intimidating, legal representation can often pay for itself when a case concludes successfully. Consulting an attorney can also help you understand the potential cost of a POA dispute, evaluate the strength of your case, and make an informed decision based on both legal considerations and your budget.
Cost of Power of Attorney FAQs
Still confused about how much a power of attorney costs? Explore the frequently asked questions below for additional guidance.
Do you need a lawyer for a POA?
No. A lawyer is not required to create a power of attorney. However, working with an attorney is often recommended to ensure the document is properly drafted and less likely to be challenged in the future.
That said, when POA disputes arise, hiring a lawyer is often necessary. These matters may involve court proceedings, and legal representation can help ensure your rights and interests are protected.
What is reasonable compensation for a power of attorney?
Reasonable compensation for an attorney-in-fact largely depends on whether the agent is a professional fiduciary or a non-professional.
- Professional agents: Professionals, such as accountants or attorneys, often charge their standard hourly rates or between 1% and 3% of the assets managed. Some may also offer flat monthly fees.
- Non-professional agents: Family members or friends typically charge hourly rates that depend on their experience, although flat monthly rates may also be used.
If you believe an agent is taking excessive compensation, you may petition the court for review. The court can evaluate whether the fees are reasonable and adjust them if necessary.
The terms of the POA document, however, take priority. If the document specifies agent compensation — or prohibits it entirely — those terms generally must be followed.
How much does a durable power of attorney cost?
A durable power of attorney — which takes effect upon signing and remains valid if the principal becomes incapacitated — generally costs the same to create as other types of POAs.
However, because durable POAs often remain in effect for longer periods of time, the total long-term costs associated with the arrangement may increase if the agent is compensated for their services.
What is the average cost of a will and power of attorney?
Attorneys who prepare wills, powers of attorney, and other estate planning documents typically charge between $350 and $500 per hour, depending on their experience and location.
Some attorneys offer estate planning packages that include a will, financial POA, and medical POA for a bundled fee.
How much does a medical power of attorney cost?
A medical power of attorney can cost anywhere from nothing to several hundred dollars, depending on how it is prepared.
DIY forms or document preparation services may cost little or nothing, while documents prepared by an experienced attorney typically cost more but offer greater customization and legal protection.
How much is a power of attorney online?
Power of attorney forms can often be found online for free or for minimal fees. After locating the appropriate form, you can complete it and print it.
To make the document legally valid, it must typically be signed before a notary public or two witnesses.
Still confused about power of attorney costs?
While the attorneys at Keystone do not prepare powers of attorney or other estate planning documents — and therefore cannot provide quotes for drafting a POA — they can help estimate the legal costs associated with disputing a POA or addressing agent misconduct, which are matters our probate attorneys regularly handle.
If you have concerns about the validity of a POA or suspect that an agent has abused their authority, contact Keystone today to discuss your situation and receive an estimate of the potential legal costs involved.
