“They spent their lives taking care of you. Now it’s your turn to take care of your aging parents as they need assistance with daily tasks. It’s either you or outsourcing to outside caregivers or nursing homes, which can be expensive.
So what if you provide care for your parents and they pay you instead?
Anne Desormier Cartwright of Elder & Estate Planning Attorneys PA says:
“”In some instances, the IRS considers a paid family caregiver an employee because the elder parent tells them what to do and then pays them for their work, similar to any job. Accordingly, the elder parent, or the family member, can then be responsible for a variety of taxes depending on the amount of wages paid.””
In Florida specifically, a personal services agreement may need to be entered into between the aging parents and the adult child. With the help of an experienced elder law attorney, this contract can prevent any amount of money being paid to the child to later be seen as a gift should the parents need to apply for public benefits programs such as Medicaid.
Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to handle all of your estate and planning needs. Do not wait to contact their office for support.”