Are Power of Attorney Agents Personally Liable for Nursing Home Bills?

3 minute read

By Victoria Nguyen

Short Answer

A power of attorney (POA) agent is generally not personally responsible for a loved one’s nursing home bills. Agents manage and pay care costs
from the principal’s funds
, and federal law prohibits nursing homes from requiring third‑party guarantees of payment [1] . However, agents can face claims if they misuse funds or fail duties promised in admission paperwork [1] .

What a POA Is-and Is Not-Responsible For

When you hold a financial POA, you act as a fiduciary for the principal (your loved one). Your job is to use the principal’s assets to pay legitimate expenses, including nursing home care, when funds are available. This role does
not
make you a guarantor of their debts, and you are not required to use your own money to cover shortfalls [2] . Consumer and elder-advocacy guidance similarly emphasizes that POA status does not create personal liability for facility charges; liability typically arises only if the agent agrees to be personally responsible or mishandles the principal’s funds [1] .

Some legal guides reiterate that nursing homes may still attempt to pursue POA agents for unpaid balances, but being an agent alone does not make you personally liable; your obligation is to pay from the principal’s accounts if funds exist [3] . Practical elder law resources also note that agents are not required to cover care costs out of pocket, provided they act properly under the POA and sign documents in a representative capacity [2] .

Key Federal Protections You Can Rely On

Federal nursing home law prohibits facilities from asking or requiring a third party (such as a POA agent or family member) to personally guarantee payment as a condition of admission or continued stay. Advocacy organizations that track and interpret these rules explain that facilities cannot hold a “responsible party” personally liable for the resident’s charges, though they often include such clauses in admission packets [1] . If you see a guarantor clause, you can typically request removal or clarification to reflect that you sign only as representative of the resident’s finances, not as an individual guarantor [1] .

When Agents Face Risk

Despite federal protections, courts have, in some cases, allowed claims against representatives based on promises made in admission contracts-particularly where an agent failed to use the resident’s funds to pay the facility as agreed, failed to apply for Medicaid when obligated, or misused the resident’s money. In egregious situations, agents who diverted funds for personal use may be ordered to reimburse the nursing home [1] . Legal practice guidance also warns that facilities sometimes pursue agents even when the law is on the agent’s side; staying meticulous with records and signatures helps prevent these disputes [3] .

How to Sign Documents to Avoid Personal Liability

To reduce risk, always sign as a representative, not in your personal capacity. Use a clear signature block such as: “Jane Doe, as Agent under Durable Power of Attorney for John Smith.” Legal practitioners emphasize that clarity in your signature and documentation helps ensure you are treated as a fiduciary using the principal’s funds, not a personal guarantor [2] . If presented with a “responsible party” clause, you can ask that it be removed or revised so it only requires you to use the resident’s funds appropriately and provide needed paperwork, without creating personal liability [1] .

Article related image

Source: writermuses.com

Step‑by‑Step: Paying Nursing Home Bills as a POA

  1. Confirm your authority. Ensure your POA document grants financial powers that cover paying bills, managing accounts, and applying for benefits if needed. Keep certified copies available for the facility and banks [2] .
  2. Inventory income and assets. List the principal’s accounts, benefits, pensions, long‑term care insurance, and monthly income. Set up a dedicated payment process from the principal’s accounts; do not commingle funds [2] .
  3. Review admission contract carefully. Strike or revise any guarantor or “responsible party” language that suggests personal liability. Ask the admissions office to confirm in writing that you are signing in a representative capacity only [1] .
  4. Pay from the resident’s funds. Make timely payments from the principal’s accounts if funds exist and keep copies of every invoice and payment confirmation. Maintain a ledger for transparency [2] .
  5. Apply for benefits when funds are insufficient. If assets are limited, you can pursue Medicaid long‑term care eligibility following your state’s rules. If you are unsure where to start, contact your state Medicaid office or your local Area Agency on Aging and ask about “Medicaid long‑term care eligibility and nursing home coverage” to begin the process. Facilities sometimes sue representatives who promised to apply but did not; documenting timely applications helps mitigate risk [1] .
  6. Dispute errors and abusive charges. If you suspect billing mistakes or non‑covered items, request an itemized bill and the care plan. Elder‑law resources stress that a POA can challenge improper charges and should monitor for unexplained withdrawals or fees [4] .
  7. Document everything. Keep meeting notes, billing correspondence, benefit applications, and bank statements. Comprehensive records are your best defense if a facility challenges your actions [2] .

Common Scenarios and How to Handle Them

Scenario 1: The facility asks you to sign as “responsible party.” You can state that federal law prohibits requiring third‑party guarantees and that you will sign only as agent for the resident’s finances. Ask the facility to adjust the signature block and remove guarantor language [1] . If pressured, consider pausing and consulting an elder law attorney before signing.

Scenario 2: The resident’s funds run out before Medicaid is approved. You are not obligated to pay personally. You can notify the facility that a Medicaid application is pending, provide proof of submission, and continue to cooperate with documentation requests. This shows good‑faith compliance with your duties and can reduce legal friction [1] .

Article related image

Source: therokuchannel.roku.com

Scenario 3: The facility sues the POA agent for nonpayment. Advocacy guidance explains that while federal law bars personal-liability clauses, courts have sometimes ruled for facilities when agents misused funds or failed promised tasks (like applying for Medicaid). If sued, you can contact an elder law attorney and prepare your documentation showing payments, applications, and representative‑capacity signatures [1] .

Scenario 4: You discover questionable charges or neglect. As POA, you can request records, meet with care staff, and contest charges. Legal resources describe the POA’s role in financial oversight and intervention in care decisions to protect the resident’s interests [4] .

Practical Tips to Stay Protected

Alternatives and Escalation Paths

If you cannot resolve billing issues directly with the facility, you can take several routes without personally assuming liability. You can consult an elder law attorney, who can interpret the admission contract and your state’s Medicaid rules, or seek help from local legal aid. You can also contact your state’s long‑term care ombudsman program by searching for “State Long‑Term Care Ombudsman” and your state name. These officials may help investigate billing disputes and resident rights concerns. For suspected financial exploitation or neglect, you can file complaints with state regulatory agencies that oversee nursing homes, and an attorney can help you consider civil remedies while you continue to act strictly in your representative capacity [4] .

Key Takeaways

– Being a POA agent does not make you personally liable for nursing home bills; you pay from the resident’s funds when available [2] . – Federal law bars nursing homes from requiring third‑party guarantees, though admission packets may still contain such clauses-request revisions and sign only as agent [1] . – Courts may allow claims against agents who misuse funds or fail promised tasks (e.g., not applying for Medicaid); keep records and act promptly [1] . – If disputes arise, seek elder‑law counsel and use ombudsman and regulatory channels while maintaining your fiduciary role [4] . – Facilities sometimes still try to collect from POA agents; careful signatures, documentation, and benefit applications are your best protections [3] .

References

[1] Justice in Aging (2023). Can a Nursing Home Force Family/Friends to Pay the Bill? [2] The Simone Law Firm (2024). Is a Power of Attorney Responsible for Nursing Home Bills? [3] Lawsuit Information Center (2023). Is Power of Attorney Responsible for Nursing Home Bills? [4] Nursing Home Law Center (2025). Power of Attorney – Role in Nursing Home Oversight and Billing.

Contributor

Victoria Nguyen is a passionate writer with a keen eye for uncovering emerging trends and thought-provoking discussions. With a background in journalism and digital media, she has spent years crafting compelling content that informs and engages readers. Her expertise spans a variety of topics, from culture and technology to business and social movements, always delivering insightful perspectives with clarity and depth. When she's not writing, Tessa enjoys exploring new coffee shops, reading historical fiction, and hiking scenic trails in search of inspiration.