Answer to the Elder Care Dilemma

In this modern society, people get older and older and this increased aging requires home care. Being a caregiver can show your care and love to the loved one, but it is not an easy work. That is not to say, the tedious and unrelenting work of caring for the elder can be a severely financial burden on the child.
Studies have shown that a child serving in the capacity of primary caregiver can lose 75% of potential earnings during every year that the”job” of caring for their parent continues.
What if there existed a creative solution to your elder care dilemma? Caregiver agreements – formal contracts under which relatives are hired to care for elderly family members have been around for decades, but with the current economic downturn, an increasing number of families are choosing this option.
This is good news, because caregiver agreements come with a number of benefits, not the least of which is that money given to a son or daughter under a caregiver agreement is not considered by the government to be “a gift” when an elderly person is attempting to qualify for Medi-Cal, Medicaid, or other public benefits. Another plus is psychological: to an aging parent, the idea of being cared for by a trusted family member may be especially meaningful. The contracted arrangements may also ease tensions and resentment among siblings, if for example, one child is rendering the lion’s share of the care.
The caregiver agreement must be in writing and it should be carefully crafted, preferably by an attorney specializing in Elder Law.




