Caring for an older loved one can be one of the most important acts of service we ever undertake—it can also cause lots of financial stress since most family caregivers are not paid.
When we’re engaged in acts of service, our hearts and minds should be with our loved ones, not dwelling on money issues. The financial impacts of becoming a care provider can be considerable.
Tax Exemptions for Dependents
Long-Term Care Insurance for Family Members
Many long-term care insurance policies cover expenses related to in-home care. Contact your insurance provider to see if family members can qualify as care providers and receive this insurance benefit. The AARP has a good overview of the benefits and risks of long-term care insurance.
Take Advantage of State Resources
The State of California offers resources for caregivers. You can receive training or find resources to supplement the care you provide. You can also register as a provider of In-Home Supportive Services and get paid by the state. However, restrictions do apply. The state’s Department of Social Services has more information.
Some families choose to formalize the caregiver relationship and establish a regularly scheduled payment. This option depends on your family’s dynamics, but a smart way to ensure a fair arrangement is made is by working with an elder law attorney. An attorney will confirm the contract is legally sound and is acceptable to all interested parties, including any siblings or close relatives.