So my sister and I are wondering if we can get some sort of compensation to enable us to stay home with them? How do we get POA for both parents, without degrading and depressing them more?

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Laura, the vast majority of grown children who take care of a parent(s) are not paid.... unless the parent can pay you directly from their own retirement fund. If your parents can do that, you and your sister would need to each draw up an employment agreement.

Another option is to check to see if your parents can qualify for Medicaid [which is different from Medicare]. Depending on your State, the State may or may not offer payment to you and your sister. If the State does, the pay would be quite minimal, not enough to really live on.

As for getting Power of Attorney, only your parents can choose someone to be their Power of Attorney. Mom could be Dad's POA, and you and your sister be 2nd and 3rd. Dad could be Mom's POA, with you and your sister be 2nd and 3rd. It would be best to contact an Elder Law Attorney as such attorneys specialize in older age issues.

Since your parents don't have POA's, chances are they also don't have Wills or Medical Directives, all of which are very important to have. If your parents are clear minded, that would be great to have them get these legal documents ASAP. If either or both have memory issues, if there is a better time in the day when their minds are much clearer, set up the appt for that range of time.
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Laura, There are many postings on this site about getting compensated for care giving family members. While I have not been in this situation myself, bumping up your posting may elicit appropriate responses.  You might also use the search engine to see what others have posted in the past.  To my knowledge, rules for compensation vary by state and (of course) your parent's financial situation.
A good place to start is your county office of aging to see what type of help is available to your parents.
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