Is it legal for caregiver that is not family to be made the POA?

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My parents hired a lady to come in and take care of them. Since she is their for them and taking care of them they have become dependent on her for everything. My Dad was hospitalized and the family was not notified. This attitude about not letting the family know what is going on seem strange to me. My parent have put all of their trust in this caregiver and have stop telling or discussing matters with us that parent and children normally would discuss. When I go to my parents home it is like I am a visitor not family. My parents have made this caregiver their POA. I am concerned that this person could take advantage of them. Is it legal for a caregiver to be the POA.

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Boy, from what you've said, I'd try to find out more about this woman. Do a background check on her to see if she has any history of fraud, theft, or something similar. I assume she's not from an agency, but just an independent operator? Does she have POA for property too or just healthcare? Are your folks of sound mind? They could have some dementia and be particularly vulnerable to her manipulation.
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Like Jeanne said, anyone can be appointed POA as long as they are an adult and are competent. But I think you have bigger problems.

From what you wrote I am seeing so many red flags. Professional, honest home health aides don't insinuate themselves into the lives of the people they are caring for. It's also totally inappropriate for this aide to be POA for your parents. And the thing that jumped out at me is that this aide is isolating your parents. You and your siblings need to get on this ASAP. Something is very wrong. And since this aide has POA she has the power to take your parents for everything they're worth.
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This is what bothers me. My parents attitude toward my sister and brother and I have changed since this woman has been working for them. My Mom use to tell me everything. Now she keeps secrets from us. I have always gone down in the summer at spring break, at Christmas and other times of the year when I am not teaching and a spent week or two whatever I have off I have always called and Mom calls me. Now my parents have in their heads that we are just concerned about what they have. When talking to my Mom now she is very guarded about what she says. This caregiver won't talk to any of us children because we have voiced concerns to our parents about this situation.
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I have no evidence. I live four hours away. I do know that since she started working for my parents that she has considerable influence over them. She has convinced them that know one else would do all that she does for them and that we children don't do enough for them. I have no proof of anything but I do know that every time my Dad sells something of value that the money disappears. Gets lost or is stolen. We are talking about around $10,000 over the past 3 years. I am just worried that they may be putting their trust in the wrong person. I am really worried that something will happen to my Dad and that my Mom will be left with nothing. I don't won't to upset my Mom & Dad. Should I just let things alone. I just pray that God will open my parents eyes if this woman is using them and if she is not then I ask him to Bless her and her family and Keep my parents safe.
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Yes, what is the relationship you have with your parents? Do they have sound minds? If you have a good relationship with your mom and dad, I don't understand why you wouldn't be called when one was hospitalized.

The caregiver could either be a really good person, trying to help your folks out or she could be an opportunist trying to take advantage of the situation. If you're concerned, you'd better spend more time with your folks and the caregiver to find out what is going on.

Also find out who has POA for property. If the caregiver is trying to take advantage, she'd want that kind of POA, as it would give her access to their money and property. If that's happened, I'd be concerned.
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Anyone of legal age and mentally competent can be POA. It can be a caregiver or someone not involved in the caregiving.

Have you any evidence that this person is taking advantage of them? Have you asked your parents why they don't discuss issues with you?
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