How does my Uncle pay me room, board and caregiving when I am his POA too?

I didn't think this is a problem. Power of Attorney simply means that you are authorized to do whatever your loved one would do himself if he were able. Has he been declared incompetent? If not, then he is still able to spend any way he chooses, including paying you a stipend for your expenses. That is probably what the attorney meant by, "document." You should just document where his money goes by keeping major receipts and perhaps a ledger. If he pays you a salary for "services" then you'll probably have to report that as income for tax purposes, but if the checks are made directly to another payee - mortgage, utilities, groceries, etc. it is my understanding that those are his expenses.


I am in the same boat...gave up my job to move in with Mom. I have financial POA and write checks directly to all providers and cash for incidentals (meals out, pet food, groceries, beauty shop, etc.)


I will check with our CPA, so I guess I'd suggest that you also discuss this with a tax accountant, but I don't think you are afoul of the law.

I spoke to my CPA today and asked him some questions. He says that anyone can give a gift of up to $13,000 per year, per recipient, without anyone having to report it. That's cash. Also, an elder relative paying rent is not a gift and is considered the elder's expenses. It does not matter that you are POA - so long as you are acting in the best interest of your uncle in a way that he would act if he was able to make decisions. I think so long as you are not charging more than "the going rate" for his housing, you are fine. It's a lot like having a roommate. You don't consider shared rent with a roommate as "income" so I don't think it is considered "income" when your uncle pays you. If your uncle gives you cash above the $13,000, you should document how you spend it for his expenses to show that it is not a gift. Only two states have a "gift tax." (Connecticut and Tennessee) Otherwise, if someone gives a gift larger than $13,000, it merely is deducted from the $5,000,000 estate tax exemption after the elder passes away. I truly don't believe you have anything to worry about with caring for your uncle. I would not document any money he gives you as "pay for services provided," just so you don't need to declare it as income. Being POA is not a problem. Perhaps you are thinking of being a conservator or trustee, in which case there are legal fiduciary responsibilities where a conflict of interest might be claimed - but POA is a very broad set of permissions given to you by your uncle because he trusts you to act on his behalf.