Our parents are living longer than ever before. According to The New York Times, “Adults over age 80 are the fastest growing segment of the population, and most will spend years dependent on others for the most basic needs. That burden falls to their baby boomer children, 77 million strong, who are flummoxed by the technicalities of eldercare, turned upside down by the changed architecture of their families, struggling to balance work and caregiving, and depleting their own retirement savings in the process.”

For those adult children who are caring for their ailing parents, there are legal options available to avoid the pitfalls of depleting your own retirement. For example, one family in Kansas City created a legal care contract to avoid putting their mother in a nursing home. According to Paula Span, the daughter was a nurse at a local hospital and was willing to bare the responsibility for her mother’s care as long as she did not lose income substantially. The daughter scaled back her work schedule and agreed to help her mother a certain number of hours each week attending to particular duties. In exchange, the mother paid her daughter the same hourly wage the daughter would have earned at the hospital.

The family hired an attorney who specialized in Elder Law to draw up a care contract. The contract specified the hours, schedule, specific duties, and pay so that all family members would feel they were dealt with fairly.

Interest in Elder Law has picked up since 2006 due to the tightening of Medicaid eligibility requirements. Without a caregiving contract, parents must sell their assets and give away cash to family members in order to qualify for Medicaid-paid nursing home care. With a caregiving contract, however, elders can show that they are paying for services rendered and still retain their assets. According to Richard Kaplan, a University of Illinois law professor who has studied care contracts, “Money can be transferred to younger relatives without triggering a penalty.”

Caregiver contracts also provide clarification so that no misunderstandings occur between siblings. Without a caregiver contract, a sibling might see the parent treating the children unequally, which could lead to bitter family disputes. With a caregiver contract, it is necessary to get all siblings involved with the specifics so that everyone feels the solution is fair.

If you need help with your own Caregiver contract, consider paying a monthly fee to have access to attornies who deal in Elder Law. The monthly fee includes free consultations per topic, free letters per topic, a free will, and a variety of other services. Check out the rates here.

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