How children can be paid for as a caregiver to their parent(s) – Part III
This is Part III of a IV part series of blogs on caregiving contracts to aging parents and children (including adult children) with disabilities.
Taking care of a parent can be a full-time job. Children may have to give up paying jobs in order to provide care to aging parents. Unfortunately, caregiving is usually unpaid work. Parents who want to compensate a child who takes on the burden of caregiving may do so in one of several ways.
House. If a parent doesn’t have cash to compensate a child, the parent may transfer the parent’s house to the caregiver child. The parent can transfer the house outright and retain a life estate for him- or herself or the parent could make the child a co-owner of the house. If the caregiver child has lived with the parent for at least two years, transferring a house can have Medicaid planning advantages as well. However, transferring a house can have serious tax and other consequences, so before taking this step, it is important to consult with an elder law attorney.
Fredrick P. Niemann, Esq. is a qualified elder law attorney who can help determine the right method to compensate a caregiver family member. You can contact Mr. Niemann by calling (732) 863-9900 or via e-mail at fniemann@hnlawfirm.com.
Tags: caregiver agreements, Medicaid eligibility, Monmouth County NJ Medicaid attorney, Monmouth County NJ Medicaid attorney; Monmouth County N, NJ estate planning, NJ Medicaid, NJ Medicaid attorney, NJ Medicaid eligibility attorney, NJ Medicaid planning, protection of home