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 “indemnitor?” 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-