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I'm caring for my elderly parents. Anything I should know?

Fri, Mar 25th, 2011
Posted in Ask the Expert

Jennifer A. Gumbel

There are many issues that come up when a child is caring for an elderly parent. The major issue is compensation and how that affects estate planning and medical assistance eligibility.

Most people don't initially want to charge their parents for giving

them care. However, the parents and all children need to discuss the reality of the cost of transportation, time off from work, and the cost of food, etc., for live-in care that the child providing the care will expend. It can be extremely helpful for everyone to have their expectations in writing through a personal care agreement.

More importantly, the reimbursement or compensation given under the agreement will not be considered a gift, preventing a tax liability for the parents and preventing a period of ineligibility for medical assistance. However, such an agreement may have tax implications for the children.

Our office can help you determine if a personal care agreement may be right for your family.

Springer & Gumbel, P.A.

141 W. Fillmore St., Preston, MN

Phone (507) 765-3600

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