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One of the most difficult areas in eldercare planning is financial: How to pay for long term care & How to keep from being exploited or scammed.
Information is largely available through the many professionals who are selling different types of retirement planning products and services. If appropriately licensed, experienced in long term care, and professionally ethical, these professionals can be invaluable.
However, an eldercare plan is highly individual, and is usually made up of a number of financial "puzzle pieces" that address a particular family's needs. Learn how to shop, what works, what to watch out for, and how to choose professional help.
Can I get paid to care for Mom and Dad?
May 23, 2008
Gary Powell
Q. My parents want to stay in their own home, and I would like to take care of them. They need more care now, and I will have to either work part time or quit my job. Can I get paid to stay home with them and provide their care?
A. It wasn't so long ago that this question wouldn't even be raised. Today's reality gives it new importance. Many people here in Hawaii simply cannot give up a job and become an unpaid family caregiver. More often, the working person will become caregiver and still maintain their job. I am going to assume that your Mother and Dad are not in a financial position to simply hire qualified caregivers in their own home. If that were the case, you might be asking how to find and screen good employees.
If your parent's have a long term care insurance policy, you may be able to receive some payment for the care services that you provide. Be aware that most policies do not provide payments for family members. This is a question that you need to pay attention to when shopping for long term care insurance. If the policy does not pay directly for famiy members, in might pay if you become a qualified caregiver (CNA or Nurses Aide). Again, not all policies allow for this.
Many are in the situation where their parents have some money, not really enough to provide for their own care, but enough to disqualify them for Medicaid assistance. Can someone in that situaiton access that money, and still make it possible for them to qualify for Medicaid?
Yes, it is possible. Using a Family Caregiver Contract you can obligate funds that your parents have as payment for future services. These contracts must be done very carefully, and it is best to use the services of a qualified and experienced elder law attorney. the contract must reflect current and fair rates for the services to be provided and it must spell out what kind of services will be rendered. This same arrangement can also be used to facilitate the transfer or real estate assets instead of actual cash.
Another way to receive pay for your services, provided you have siblings, is for your brothers and sisters to pool their financial resources together to pay you and offset your loss of income. This is usually not a satisfactory arrangement and often results in dispute or conflict.
Another approach, if you do not require the resources to be available immediately, is to create a legally binding agreement that adjusts your portion of an eventual inheritance in proportion to the value of your services. This may mean that extended care would place you in a full inheritance provision while your siblings relinquished their future inheritance claims. Again, an elder law attorney should be consulted when established such a Family Caregiver Contract.
It is extremely important to remember that everyone ages differently, and caregiving needs may change unexpectedly such that you do not have the skills or ability to provide the best level of care. Always provide for other options to include education and training, and possibly moving into a care facility of some type. The goal should always be to provide care and safety of the older person.
Read these past Questions & Answers, just click on the title.
