Can I Get Paid to Be My Parent’s Caregiver?

Elder Law | Aug 31, 2023 | Emily A. Martin

As our loved one’s age, the responsibility of providing care often falls on family members. Being a caregiver can be emotionally fulfilling, but it can also cause financial strain when a caregiver takes their loved one into their home or must pause or stop working in order to take care of their parents. However, the good news is that it may be possible for you to be compensated for taking care of your parents without affecting their eligibility for public benefits.

If you are caring for your parents and they are not yet receiving Medicaid benefits, it is possible for you to get paid to be their caregiver. This step not only allows you to receive compensation for your expenses, but it can allow your parents to reduce their countable assets for Medicaid eligibility purposes without being penalized for giving assets away. When your parents pay you for caring for them, it is important that you have a written care agreement in place to provide documentation for Medicaid purposes. Many attorneys will recommend that your parent is evaluated by a geriatric care manager. A geriatric care manager will evaluate your parent, observe what services you provide them, and come up with an appropriate hourly rate for you to be paid based on these factors.

One important consideration is that the funds you receive as a paid caregiver are factored into your taxable income. It is important for you to consult with an accountant or other tax professional about how this will affect your personal tax liability. Additionally, as a paid caregiver, it is important for you to keep logs and other records as to the care provided and the number of hours of care provided per week. If you reimburse yourself for out-of-pocket expenses, it is important to keep receipts and other records of what you purchased.

If you are caring for your parents or other loved ones, it is important that you and your loved one have a plan. Whether you need to develop a caregiving schedule, discuss the terms of a caregiver agreement, or make sure your parents have the proper documents in place, it is important to meet with an experienced elder law attorney to discuss all these issues.

Emily A. Martin

Attorney, Shareholder
757-399-7506 | 252-722-2890
[email protected]

Emily A. Martin is a Shareholder of Hook Law practicing in the areas of elder law, estate and trust administration, estate planning, asset protection planning, litigation and dispute resolution, guardianship and conservatorship, long-term care planning, special needs planning and financial planning. To date, Ms. Martin has overseen over 100 guardianship and conservatorship matters. In addition to being admitted to the Virginia State Bar and North Carolina State Bar, she is licensed to practice before the Department of Veterans Affairs. Ms. Martin is a member of the National Academy of Elder Law Attorneys and Virginia Academy of Elder Law Attorneys. She is a graduate of the University of Mary Washington and Regent University School of Law. Prior to joining the firm in 2018, Emily worked as an estate planning and elder law attorney in Virginia Beach for several years.

Practice Areas

  • Elder Law
  • Estate & Trust Administration
  • Estate Planning
  • Asset Protection Planning
  • Guardianship & Conservatorship
  • Long-Term Care Planning
  • Special Needs Planning
  • Financial Planning
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