A Dec. 11, 2010 article in the Wall Street Journal identifies a trend in family care giving that is exacerbated by the slow economy. In Family Value: Should You Pay a Relative to Take Care of Mom?, reporter Anne Turgensen writes, "When caregivers make financial sacrifices, elder-law attorneys say, it is often appropriate to compensate them. Some 37% of caregivers surveyed by the NAC in 2007 said they had quit a job or reduced their hours to accommodate their responsibilities."
The article makes the point confirmed by several elder law attorneys that it is important to notify the family when such an arrangement is made. And exactly how the payment is made can have a big impact on the estate-planning goals of the family member receiving the care, as well as tax consequences. And, states the article, "if a parent may need to rely on Medicaid to cover future nursing-home costs, it is important to pay the caregiver in a way that is permitted under Medicaid law."
See the full WSJ article here: Should You Pay A Relative?
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