As your parents continue to age, you probably have begun to take on more responsibilities when planning for their care and safety. To benefit both you and your loved ones, you may want to consider creating a caretaker agreement.
Choosing to become a caretaker for a loved one is an extremely important responsiblity. While there will be times full of stress and struggle, you will be helping your loved one in his or her greatest time of need. Take a look at the guide below to learn more. If you have additional questions about the use of a caretaker agreement, consult with an elder law attorney.
While most children decide to care of their elderly parents out of love, more people are considering the many benefits of a caretaker agreement.
A caretaker agreement can be used to protect you and your loved one. If your loved one were to give you a gift for your services and later apply for Medicaid, he or she may be subject to a waiting period.
A caretaker agreement can offer protection. If your loved one signs a caretaker agreement and pays you a monthly salary for your services, this compensation would not interfere with Medicaid qualifications.
An agreement must discuss the duties that you will perform as well as detail the payment. A caretaker agreement is only eligible for individuals who actually need care, and the care that is received must be documented. An elder law attorney can help assess you and your loved one’s needs and determine if a caretaker agreement may be beneficial.
You may feel uncomfortable about accepting money from your loved one. While you’re caring for your parent out of love, you’re still taking time out of each day to help your loved one with his or her needs. If your loved one were to get care outside of the home, he or she would be paying someone else for your services.
Consider using part of the compensation that you receive as a way to better your parent’s life. You may want to use some of the compensation to fix up a room in your house so that your loved one has an individual space.
If you have any questions about drafting a caretaker agreement, consult with a qualified elder law attorney.
- Planning for the Sandwich Generation - May 28, 2020
- Choosing the Right Fiduciaries - May 26, 2020
- Shrunken Asset Values Open Estate Planning Opportunities - May 21, 2020
