Should the Family Member/Caregiver get Paid?

Veterans Relying on Family Members as Caregivers

While the Western Culture is not known for “taking care of their own” like other cultures, family members in America do provide a lot of care to their elderly spouses, parents, and siblings.  During difficult economic times, it is more likely that adult children will elect to personally take care of a parent rather than place the parent into an assisted living facility or nursing home.  The question, “Should the family member get paid?” for providing such care is something each family should consider.

Family members may think, “I would never charge my father to take care of him.”  Others may feel like their siblings will think they are taking advantage of the situation if they charge.

Bottom line is:  the caregiver, whether a family member or not, is providing a very necessary service and that service has value.  If a family member did not provide the service, then others would have to be hired and paid anyway.  The elderly person is already comfortable with the family member and the family member can certainly discount the rate.

FOR WARTIME VETERANS it is actually better to pay the family member.  In order to qualify for the VA non-service connected disability pension (with aid and attendance), a veteran must spend down his income on recurring, non-reimbursable medical expenses.  Assuming the veteran is blind, living in a nursing home, is in need of another person to assist with the activities of daily living (walking, bathing, dressing, toileting, transferring, eating, or administration of medication), or if the veteran is just not safe in his environment due to cognitive disorder (for example Alzheimer’s Disease), then the amount paid to the family caregiver is a permissible deductible expense which will aid in the veteran becoming eligible for tax free income from the VA.

A paid family member excludes the spouse, but can be any other family member.

There are, however, 3 very important “cautionary notes” about paying family caregivers that you should know:

• Income paid to the family member is taxable income that is reportable to the IRS.
• If the veteran is only rated as “housebound” level of care and not in need of “aid and attendance” then the payments are NOT deductable medical expenses unless the caregiver is a professional medical provider or under the direct supervision of the treating physician.
• The family caregiver should be paid at the fair market rate for such services, or less, but not more.

For more information about this topic and other “secret” Veteran’s Benefits Tips, you can purchase the 47 Secret Veterans’ Benefits for Seniors: Benefits You have EARNED…but Don’t Know About from www.Amazon.com or http://www.elderlawgeorgia.com/.

Victoria L. Collier is an Elder Care Attorney, Author, and Educator on Veterans Benefits.  She served in the United States Air Force from 1989-1995, during Desert Storm and was a 1^st Lieutenant in the Army Reserves from 2001-2004, JAG Corps.  Victoria’s law practice, The Elder & Disability Law Firm of Victoria L. Collier, is in Atlanta, Georgia, but she mentors attorneys nationwide.  She is a regular contributor to AgeWiseLiving Blog.

Blog in next month when Victoria will discuss who qualifies for an extra $1,949 per month in tax free income from the VA.  You can also go to the AgeWiseLiving website for additional information now.

Tagged as: caregivers, elder care, eldercare, Veterans