Can children be responsible for their heir parents’ bills?
When parents enter a nursing home or assisted living, adult children are often confused regarding their responsibilities. Does it matter if one of them signs dad in and that child is called the “responsible party?” How about signing as “indem-nitor?” Is it safe to be agent under power of attorney? Does biological relationship alone bring with it responsibility for a parent’s nursing home or assisted living bills? These are questions that often require a trip to a knowledgeable elder law attorney’s office to be certain but here are some general rules.
First, what does it mean to be referred to as a “responsible party?” The reason for this designation is typically so the nursing home or personal care facility knows who to contact. Generally speaking, you are responsible under the document you sign only to the extent of your parent’s assets, not yours. However, be sure to read any specific document before signing to be sure. It could say differently. If your parent is competent to sign you may want to have your parent sign. Even when you do sign for your parent, it is best to sign either using your parent’s name “by” your name “as agent only” or “as agent under power of attorney” if that is the case. Note, however, even if you are not the “responsible party,” you could have other responsibilities. See below.
You do not want to sign as “indemnitor” unless you are willing to pay your parent’s bills from your own personal funds. Indemnitor means you could be found responsible. Be sure to get competent legal counsel before signing such an agreement.
Serving as agent under power of attorney does not require you to pay your parent’s bills from your own funds but does require you to act responsibly with their money. You serve as a “fiduciary,” someone with a special relationship who is expected to look out for your parent’s best interests and can be held accountable if you fail to so act. In other words if you are agent under power of attorney you cannot squander your parent’s funds or use them as though they belonged to you.
Finally, there is the category known as “filial responsibility.” Here, an adult child might find a claim against him or her for a parent’s care. If a parent’s bill is being paid by Medicaid, filial responsibility does not apply since a nursing home cannot receive payment from the government and from you as adult child at the same time. This means it is extremely important that the Medicaid application is done right to avoid potential responsibility as an adult child.
In a 2013 Pennsylvania Superior Court case, the Court en--
tered a judgment of nearly $93,000 against a son of a nursing home resident under Pennsylvania’s “filial responsibility” law based only on the biological relationship of son to indigent parent. In a subsequent case an adult child caring for Mom in his home sued his brother and sister to have them contribute to the cost of care and won.
This means children who have distanced themselves from their parents and leave all the care and expense to one of their siblings might be called upon to pay support in a similar way to the support they might now provide for their minor children or spouses.
Here are some things to know.
First, for filial responsibility the parent has to be “indigent” but this does not require much. If a parent does not have enough to pay her bills, this qualifies as indigent.
Second, there are defenses but these are limited.
Finally, as an adult child of a parent who needs care, you should not ignore bills in a nursing home or personal care believing you could never be responsible. You want to know that bills are paid and that Medicaid, if it is a source of payment, is applied for and the information provided. Definitely do not wait until assets are low. Seek professional assistance early. This is a technical area, not to be left to chance. Family members should work together and discuss solutions where possible. In the long run you should not ignore your brother or sister and tell them to go it alone. This could affect you. For more, listen on Wednesdays at 4 p.m. to radio WCHE 1520, “50+ Planning Ahead,” with Janet Colliton, Certified Elder Law Attorney, Colliton Elder Law Assocs., PC and Phil McFadden, Home Instead Senior Care. Janet Colliton, Esq. limits her practice to elder law, Medicaid, Medicare, life care, special needs, and estate planning and administration with offices at 790 E. Market St., Suite 250, West Chester, Pa. 19382, 610-436-6674, colliton@ collitonlaw.com. She is a member of the National Academy of Elder Law Attorneys and, with Jeffrey Jones, CSA, cofounder of Life Transition Services LLC, a service for families with long term care needs.