Acting under someone’s power of attorney is a serious responsibility. You manage finances, make decisions, and often spend significant personal time handling affairs that would otherwise fall to a professional. So when the question comes up, “Can I pay myself for this work?” the answer is not a simple yes or no.
Texas law allows an agent under a power of attorney to receive compensation unless the power of attorney document explicitly forbids or restricts it. Getting this wrong, even unintentionally, can expose you to legal liability, accusations of financial abuse, or worse. Here is what you need to know.
What Is a Power of Attorney in Texas?
A Texas power of attorney is a legal document authorizing one person (the agent) to act on behalf of another (the principal) in financial or legal matters.
Under the Texas Estates Code, a durable power of attorney allows an agent to manage property, finances, and legal affairs on behalf of the principal. The document remains valid even if the principal becomes incapacitated, which is one reason it plays such a central role in elder law and estate planning.
The agent’s authority comes from the document itself and state law. Whatever the principal authorizes in writing defines the scope of the agent’s power, though Texas statute sets the baseline for compensation unless the document modifies it.
Can a Power of Attorney Pay Themselves in Texas?
Yes, under Texas law, an agent is entitled to reasonable compensation by default unless the power of attorney document states otherwise.
Under Texas Estates Code Section 751.024, an agent is entitled to reimbursement for reasonable expenses and compensation that is reasonable under the circumstances, unless the document limits or waives that right.
The safest approach is to review the original document carefully. If it authorizes agent compensation, it should specify how that compensation is calculated, whether hourly, as a percentage of assets managed, or as a flat fee. If it is silent on compensation, Texas statutory default rules allow reasonable compensation, though consulting an attorney or getting written family consensus can help avoid potential disputes.
The Fiduciary Duty Every Agent Must Understand
An agent under a Texas power of attorney has a fiduciary duty to act in the principal’s best interest, not their own financial interest.
This is the legal standard that governs every decision an agent makes, including decisions about compensation. Texas Estates Code Section 751.101 lists the agent’s core duties, which include acting loyally for the principal’s benefit, avoiding conflicts of interest, and keeping the principal’s property separate from the agent’s own.
Paying yourself an amount that is unreasonable, undisclosed, or unauthorized is a direct violation of this duty. Courts take fiduciary breaches seriously. Family members who believe an agent is misusing their authority can file a petition for an accounting or seek to have the agent removed and held financially responsible.
What Counts as Reasonable Compensation?
Reasonable compensation is generally measured by the time invested, the complexity of the work, and the full circumstances of the estate, as Texas statute evaluates reasonableness on a case-by-case basis.
There is no single fixed rate set by Texas law for agent compensation. Courts and legal professionals typically evaluate reasonableness based on factors such as:
- The nature and complexity of the tasks performed
- The time spent on the principal’s affairs
- Whether the agent has professional skills relevant to the work
- The value of the assets being managed
- What a comparable professional fiduciary or attorney would charge
Keeping detailed records of your time and activities is essential. If your compensation is ever questioned, those records are your primary defense.
How to Properly Document Agent Compensation
Documentation protects both the agent and the principal. Every payment you take as an agent should be recorded, dated, and tied to the governing terms of the power of attorney or statutory default guidelines.
Start by reading the power of attorney document in full and identifying any specific rules or restrictions regarding compensation. Then maintain a written log of every task performed and the time it required. Keep all receipts for expenses separately from compensation records.
Each payment you take should be recorded with:
- The date of the payment
- The amount paid
- The service or time it represents
- The account from which it was drawn
Most importantly, do not use the principal’s financial accounts for your personal expenses. Your payments must be clearly documented as compensation for specific work. If family members or a court later review your actions, thorough documentation demonstrates you acted in good faith and within your authority.
When You Should Talk to an Attorney First
Consult a Texas estate planning attorney before taking any action if the document is ambiguous, if the principal has diminished capacity, or if family conflict is a concern.
Situations involving large estates, contested family dynamics, or a principal who can no longer confirm authorization in writing carry real legal risk for agents. Even well-intentioned agents can face serious consequences if compensation is later deemed improper.
An attorney can review the document, help you structure compensation properly, and advise you on keeping records that will hold up to scrutiny. In some cases, seeking court approval for a compensation arrangement upfront is the most protective step an agent can take.
How South TX Family Law Can Help
At South TX Family Law, we work with Hill Country Village families on estate planning, powers of attorney, and the legal questions that arise when someone steps into an agent role. Whether you need a power of attorney drafted with clear compensation terms or guidance on an existing document, our team is ready to help you move forward with clarity and confidence.
Call us at 210-775-0353 or contact us to schedule a consultation with our team.
Last updated: July 2026
