Caring for a loved one is one of the most compassionate and selfless things a person can do. But it’s also one of the most challenging. If you’ve been helping a parent, spouse, or close relative with their daily needs—whether it’s dressing, feeding, or managing appointments—you know just how emotionally and physically demanding it can be.
And if you’ve been named as their Power of Attorney (POA), you’re carrying even more weight. You’re not just providing care; you’re making legal and financial decisions on their behalf. Naturally, this can bring up some complicated questions—especially around compensation.
One of the most common questions we hear from family members is:
“Can I get paid to be a caregiver if I also have Power of Attorney?”
Let’s walk through the answer together.
What Does Power of Attorney Actually Mean?
Let’s start with the basics. Power of Attorney (POA) is a legal document that gives one person (the “agent”) the right to act on behalf of another (the “principal”). This could be for financial decisions, medical care, or both.
There are several types of POA:
- General POA – covers a broad range of legal and financial matters
- Durable POA – remains in effect if the person becomes mentally incapacitated
- Medical POA – allows you to make healthcare decisions
- Financial POA – lets you handle banking, bills, and property matters
Being appointed as someone’s POA doesn’t mean you “own” their life. It means you’ve been trusted to help make decisions in their best interest—especially when they can’t speak for themselves. It’s a serious responsibility, and one that’s often given to the person closest to them, like a spouse, child, or sibling.
When Caregiving Becomes a Full-Time Job
If you’ve stepped into the role of daily caregiver—helping your loved one with meals, hygiene, mobility, medications—you’re doing more than just helping out. You’ve become the front line of their support system.
And let’s be honest: caregiving can take a toll. It may mean cutting back work hours, using personal savings, or giving up outside activities. Many people in this position eventually ask themselves:
“Can I be compensated for this? And if I have POA, is that even allowed?”
Yes, a POA Can Be a Paid Caregiver—But There Are Rules
Here’s the short answer: Yes, you can be both a Power of Attorney and a paid caregiver.
But there’s a very important caveat: you must follow the rules. That means being transparent, keeping records, and most importantly—making sure your loved one (the principal) consents to the arrangement.
It might sound odd—after all, you’re both caring for them and managing their affairs. But this is where legal boundaries matter. Even with POA, you cannot just pay yourself from their bank account without a formal agreement.
Doing so without consent or documentation could open the door to accusations of financial abuse or misuse of power.
“It’s absolutely possible for someone with Power of Attorney to be a paid caregiver—but it needs to be handled with care. The key is documentation and transparency. A signed caregiver agreement, ideally reviewed by an attorney, protects both the person receiving care and the person providing it. Without it, even well-intentioned family members can face legal and financial complications down the road.”
— Lauren Silvers, P.A., Estate Planning Attorney based in Clearwater, Florida
Creating a Caregiver Agreement
To stay on the right side of the law and protect everyone involved, it’s best to create a written caregiver agreement. This is a simple, signed contract that outlines:
- What kind of care you’ll be providing (e.g., cooking, bathing, transportation)
- How many hours a week you’ll work
- How much you’ll be paid and from what source
- The duration of the arrangement
This agreement serves two important purposes:
- It shows that your loved one agrees to the arrangement.
- It protects you if other family members ever question the setup.
Even if you’re doing this from a place of love (which you are!), financial arrangements can be a touchy subject. A written agreement prevents confusion and sets clear expectations for everyone involved.
Where Does the Money Come From?
There are a few ways a family caregiver might get paid:
1. Private Funds
Your loved one may choose to pay you directly from their own income or savings. If you’re their POA, this is possible—but only if they’ve consented in writing and the payments are documented properly.
If they can’t sign the agreement themselves due to mental incapacity, it’s especially important to involve an estate attorney or the court to review and approve the arrangement.
2. Long-Term Care Insurance
Some long-term care insurance policies cover family caregivers. But these often come with rules, such as needing a licensed agency to oversee care or requiring that the caregiver be trained. It’s worth checking the policy’s fine print.
3. Medicaid and State Programs
Many states offer Medicaid waiver programs that allow family members to be paid for caregiving. Programs vary by state but often include options like:
- CDPAP (Consumer Directed Personal Assistance Program) in New York
- Structured Family Caregiving in Indiana, Georgia, and other states
- Adult Foster Care (AFC) or Adult Family Living (AFL) in Massachusetts and Connecticut
These programs allow the care recipient to choose their own caregiver—including a spouse or relative. However, they do require registration, training, and oversight through an agency.
The good news? Having POA usually doesn’t disqualify you. In fact, many of these programs are designed specifically for family caregivers—the people who know and love the recipient best.
Click here for more information on How to Get Paid as a Family Caregiver
What If You’re a Spouse or Close Relative?
Being a spouse or close relative may make you even more eligible to receive compensation through state programs. But there are still important boundaries to consider—especially if you’re also the POA.
When you hold both roles, everything you do—especially involving finances—should be carefully documented and legally sound.
The stakes are higher with spouses, because marital assets are often shared. If you’re using shared accounts to pay yourself, you’ll want to be extra cautious and transparent.
Keep Detailed Records
One of the best ways to protect yourself and your loved one is by keeping a daily care log and financial records. That means noting:
- What tasks you completed each day
- How long you spent
- Any payments made and why
- Mileage, receipts, or purchases for your loved one
If a question arises later—whether from a family member, Medicaid, or a financial advisor—these notes will help show that everything was above board and in the best interest of your loved one.
When to Talk to an Estate Attorney
If all of this feels like a lot to navigate—it is. That’s why it’s smart to consult with an estate planning or elder law attorney, especially if:
- You’re unsure what your POA allows
- Your loved one can no longer sign legal documents
- You want to set up a caregiver contract
- You’re planning to apply for Medicaid coverage
- There are disagreements among family members
An attorney can help you understand your rights and responsibilities under POA, draft the necessary documents, and ensure that your caregiving arrangement is legal and fair.
Remember, POA comes with fiduciary duties—a legal obligation to act in the best interest of the person you represent. An attorney can help you stay within those boundaries while still getting the support you need.
You Deserve Support, Too
Caring for someone you love is deeply rewarding—but it can also be lonely and exhausting. When you’re the one they rely on for everything, day in and day out, it’s easy to forget about your own needs.
You might be sacrificing your own career, your finances, and your health to make sure they’re okay. But your time, energy, and care have value.
Getting paid for your work as a caregiver isn’t about greed—it’s about making the caregiving role sustainable. It means being able to continue showing up, day after day, without falling into burnout or financial hardship.
Final Thoughts
So—can a Power of Attorney be a paid caregiver? Yes, absolutely. But it must be done with care, honesty, and the proper documentation.
Here’s what to remember:
- POA gives you the ability to act on someone’s behalf—but not to pay yourself unless it’s legally documented
- A caregiver agreement is your best tool for transparency
- Many Medicaid and state programs allow family members to be paid, even if they have POA
- Record-keeping is essential
- When in doubt, talk to an estate or elder law attorney
If you’re walking this road, you’re not alone. Thousands of people across the country are in the same boat—loving someone, helping them, and trying to do it right.
You’re doing important work. And you deserve to be supported, both emotionally and financially.
