Paying a family member for caregiving services
Paying a family member for caregiving services
This can be an excellent idea on several fronts. Finding formal programs for this benefit is still difficult to navigate, which leaves many families playing out this option internally. Be aware that it can affect eligibility for several government benefits due to its possible “gifting” aspect. A well-written, carefully documented agreement is important and required to unlock this option..
This option would have been a laugh just a few years ago, but things change. Since it is now clear to almost everyone that most people want to age-in-place in their own homes, and that mostly their caregivers are unpaid family members, it is high time that governments begin to see that paying family caregivers makes a lot of financial sense.
Getting Started
Probably the first places to look are in our biggest government agencies in the health care space, Medicare, Medicaid, and the U.S. Dept. of Veteran Affairs, if appropriate. Until recently, none of these did much, if any, in direct payment to family caregivers, but now all three of these major hitters have begun, and openly plan to increase. Long-term care insurance policies are another source where you may find clauses allowing family members to provide care, for pay, for policyholders. Lastly, in most cases, families choose to “keep it within the family”. We understand that for most people the best caregiving services available may come from family or friends so that it can happen in what may be the best possible location, home.
Some Insights
Be aware that receiving payments from an aging family member may look like a gift as it pertains to the rules of Medicaid or VA benefits. So it is important to utilize a Care Agreement and create a paper trail of payments. Our Guide on this topic comes with an Agreement template.
Dive Deeper:
Download our Guide on this topic!