Many families appoint a power of attorney (POA) to help make decisions for an aging parent or relative. Often, that same family member also provides hands-on care for daily needs, medication, and health care. This raises a common question: Can you hold POA and also be a paid caregiver?

The answer is yes — but there are important rules and laws to follow. Simply having power of attorney does not automatically entitle you to payment. To receive a paycheck as a caregiver, you must set up a proper contract, document everything clearly, and understand how programs like Medicaid, Medicare, and veteran benefits can help.

This guide explains how family caregivers can get paid legally while serving as POA, and how to protect your loved one’s income, assets, and eligibility for benefits.

What Is a Power of Attorney?

A power of attorney is a legal document that names someone (the agent) to make decisions for another adult (the principal). This role can include decisions about health, finance, real estate, and even mental health care. In some situations, a legal guardian may also be appointed, but a POA is often the preferred choice because it’s more flexible.

Types of POA

General POA: Authority over finances, insurance policies, and property.
Durable POA: Stays valid even if the principal develops a disease like dementia or suffers an injury.
Medical or Health Care POA: Covers only health care decisions.

As a POA, you have a fiduciary duty under the law to act in the best interest of the patient. If you want to be paid as a caregiver while serving as POA, you need a clear, written contract to show the payments are legitimate.

Does POA Include the Right to Get Paid?

No — holding POA does not automatically entitle you to money for caregiving. You must create a written caregiver agreement that explains your duties, wage, and hours. Without this document, payments could be seen as gifts, which could hurt the principal’s eligibility for Medicaid, managed care programs, or other benefits.

What Should Be in a Caregiver Contract?

Your caregiver contract should include:

Specific services, such as activities of daily living, meal preparation, medication reminders, housekeeping, transportation, and physician visits.
Agreed wage, consistent with community rates in areas like Philadelphia, San Diego, New Jersey, Maryland, Iowa, Louisiana, Montana, Virginia, Kansas, Arkansas, Arizona, Georgia, and Nevada.
When and how payment will be made — either by check, direct deposit, or reimbursement.
Start and end dates, and review periods for wage adjustments.

By documenting the arrangement, you help avoid stress, debt, and family disputes while protecting eligibility for programs like Medicaid waiver services or Medicare.

How Can You Get Paid as a Caregiver With POA?

There are several ways to legally earn income while holding POA. The right option depends on the patient’s assets, health insurance, and eligibility for state or federal programs.

Medicaid Waivers

Many states offer Medicaid waiver programs that allow family caregivers to be paid for providing home care or respite care. Medicaid helps prevent unnecessary nursing home placement and allows adults to remain in their homes. As POA, you can help apply for these programs and establish yourself as the caregiver.

Veteran Benefits

If your parent or loved one is a veteran, the Department of Veterans Affairs offers programs like the Aid and Attendance Pension that reimburse family caregivers for home care. As POA, you can file claims and manage payments.

Private Funds

If your mom or dad has personal savings or real estate income, they can pay you privately for caregiving services. But even then, you must have a written contract and keep clear records to comply with tax law.

Long-Term Care Insurance

Some insurance policies cover home care by family caregivers. As POA, review the insurance documents carefully and contact the insurance company for information.

Responsibilities of a POA and Caregiver

As POA, you must always act in the best interest of the patient. This means managing their money, health, and decisions responsibly. When you’re also getting a paycheck as a caregiver, you need to follow the law closely.

Best practices include:

Charging a reasonable wage that reflects community rates.
Keeping detailed records of hours worked and tasks performed.
Paying appropriate taxes on caregiver income.
Consulting with a lawyer or attorney who specializes in elder law to make sure the arrangement complies with state law.
Ensuring accessibility and quality care for the patient.

The Value of Documentation

Clear documentation protects both you and the care recipient. It prevents misunderstandings, reduces family stress, and helps maintain eligibility for Medicaid and other programs. Family caregivers often face emotional and financial pressure, so having everything in writing makes management easier and more transparent.

The Benefits of Being a Paid Caregiver

Being paid as a caregiver while serving as POA has many benefits:

Provides income while you care for your parent or loved one.
Reduces financial strain on your own household.
Supports your loved one’s ability to age in place instead of moving to assisted living or a nursing home.
Encourages professional standards for care.

Family caregivers sacrifice time, money, and mental health to care for relatives. Earning a paycheck allows you to continue providing care without falling into debt or financial hardship.

How Paid.Care Helps Family Caregivers

At Paid.Care, we specialize in helping family caregivers get paid fairly and legally. We guide you through every step of the process, including:

Drafting a caregiver contract.
Applying for Medicaid waiver or veteran benefits.
Managing employee benefits, taxes, and wage documentation.
Providing guidance about insurance, real estate, and managed care considerations.

We serve families across the country — including in Philadelphia, New Jersey, Maryland, Iowa, Louisiana, Montana, Virginia, Kansas, Arkansas, Arizona, Nevada, Georgia, and San Diego. We also work with organizations to connect families to trusted community resources.

Our team ensures you have accurate, clear information and a legal foundation for your caregiving role. We help you comply with consumer protection laws, maintain health care accessibility for the patient, and manage finances responsibly.

Take the Next Step

If you’re a family caregiver holding power of attorney, you can be paid for the care you provide — but it must be done properly. Creating a caregiver contract, managing taxes, and using programs like Medicaid or veteran benefits protects you and your loved one.

Contact Paid.Care today to get started. Our team can answer your questions about wage rates, reimbursement, employee benefits, and contract management.

We’ll help you care for your loved one while securing your own financial future — and giving you peace of mind.

For more information or to speak with one of our experts, send us your email address or call today. Start your journey to fair caregiver pay now.

FAQs

Yes — but you must follow proper procedures. Holding power of attorney gives you authority to make decisions, but it does not automatically allow you to take payments. You need a signed caregiver contract that specifies your duties, wage, and hours. Payments should be reasonable and properly documented to comply with law, protect Medicaid or Medicare eligibility, and avoid tax issues.
It can, if not handled correctly. Payments that are not documented properly may be treated as gifts or inappropriate transfers, which can jeopardize Medicaid eligibility and increase nursing home costs. Working with a lawyer or elder law attorney helps ensure your caregiver payments comply with program rules and protect access to health care.
Yes. Caregiver wages count as income and are subject to federal and state tax. You may also need to handle withholdings, report earnings, and pay Social Security and Medicare taxes. Proper management of payments ensures you meet your tax obligations and maintain eligibility for programs like employee benefits or health insurance.
Several programs can help cover your paycheck as a family caregiver. These include Medicaid waiver programs, veteran benefits like Aid and Attendance, and some long-term care insurance policies. In some cases, your loved one’s asset income or savings can fund your pay if documented properly. States like New Jersey, Maryland, Iowa, Louisiana, Arizona, Nevada, and others offer Medicaid waivers for family caregivers. Paid.Care can help you apply for these programs and handle all necessary information and documentation.

Can a POA Be a Paid Caregiver? Discover the Facts Today