Providing elder care services for an aging parent can be expensive and challenging. When it comes to your parents, however, who else is going to make sure that their well-being is top priority other than a family member?
One way to resolve this dilemma is to be paid for providing caregiving services for them. Especially for children who are leaving full-time jobs to care for their aging parent, compensation should be considered. Although it may sound too good to be true, especially when you’re providing round-the-clock assistance, it’s absolutely an option depending on where you live and the specific circumstances of your parent’s situation.
Before your parent begins to pay you for care, however, you will want to speak with a Florida elder law attorney. Contracts between family members can be tricky. They are especially so when it comes to long-term care.
The reason why is simple.
One day, your parent may need more assistance than you can provide. In these instances, for safety concerns or other reasons, your parent may need to live in a skilled nursing facility. The cost of a nursing home can be high and your parent may need to qualify for benefits under a program such as Medicaid to help pay the monthly bill.
Programs like Medicaid have strict income, asset, and transfer rules to qualify. There are penalties for gifts made to other people such as children. You do not want the payment your parents gave you for the care received to be seen as a gift, or uncompensated transfer. Your elder law attorney can help you and your parent write a contract that protects both of you and ensures access to future benefits.
Further, taxes must be considered. Often, under these contracts, the child becomes an employee of the parent and must file taxes accordingly. You and your elder law attorney can work with an accountant to get the best advice in this scenario.
Providing care for an aging parent is a selfless act. It is one that we have seen countless times benefit the aging parent and the child.
The key is to do it the right way and have it reflected and documented in a personal care contract so that you and your parents will not jeopardize any potential future long-term care assistance you might need from a public benefits program such as Medicaid.
We know this can be confusing as a topic and look forward to answering your questions in our office. Do not wait to contact us about this or any other elder care issue.