Your frail mother is still cherished but she is 92 years old and needs home care. Caring for her is a labor of love, but a hard job; even when he smiles. In addition to the tedious and incessant requirements involved, the “job” of caring for him can be a severe financial burden on the child. Research has shown that a child serving in a primary caregiver capacity can lose 75% of potential income during each year that the “job” of caring for their parents continues.
What if there was a creative solution to your elderly care dilemma? A nanny agreement – a formal contract under which a relative is hired to care for an elderly family member has been around for decades, but with the current economic downturn, more and more families are opting for this option. This is good news, because a nanny agreement comes with a number of benefits, not the least of which is that money given to a son or daughter under a nanny agreement is not considered by the government a “gift” when a parent tries to qualify for Medi-Cal, Medicaid. , or other public benefits. Another plus is psychological: for aging parents, the idea of being cared for by a trusted family member may mean a lot. Contract arrangements can also ease tension and resentment between siblings, if for example, one child provides the lion’s share of care.
The caregiver agreement must be in writing and must be carefully drawn up, preferably by an attorney who specializes in Elder Law. There are also tax consequences. This agreement is a legal contract; must include details such as service charge with each service itemized; and the tasks to be performed by the caregiver, are spelled out in clear language. The powers for making medical or financial decisions should also be clearly defined, especially if making medical and physical decisions will be part of the caregiving duties, those powers should be set out separately in the Durable Power of Attorney for finance and the Continuing Health Care Directive for medical. problem. Perhaps most importantly, the caregiver contract must be executed before the caregiver receives any compensation. If this last stipulation is ignored, the caregiver agreement can lead to a crisis rather than a solution.
