About 40 million people are helping to care for older relatives and friends.
Some leave their jobs to do so, and some end up as live-in caregivers.
All give up much of their personal freedom.
Should they be paid for their work?
Thats a controversial question.
Families often think that providing unpaid care comes with the territory of being a daughter or son.
But what if the parent needs meals prepared, medications monitored and help with dressing or bathing?
Not many of us can write checks like that.
To solve the care problem, an adult child might decide to move in.
That may bewhen the pay issue arises.
When the parent dies, the caregiver might be cut loose with no home and no prospects.
Pay, or some other form of financial settlement, seems fair.
The same may be true for adult children of modest means who take an ailing parent into their home.
For a list of programs available in your state, go topayingforseniorcare.com.
Some long-term care insurance policies also cover a portion of home care costs.
Failing these options, the family has to pay.
There could beblowups when siblings find out.
As hard as it might be, the family should negotiate a financial agreement.
Will the family pay for the caregivers health insurance?
What about time off for the sibling who takes Mom into her home?
What can other siblings do?
To clarify matters, you need a signed and dated contract listing salary and specific duties.
Visitcaregiver.orgfor advice on personal agreements.
Be aware that a paid caregiver often is regarded as the recipients employee, earning taxable income.
For full details,visit irs.gov.
Contracts and tax forms might seem excessive, but youll avoid tears later by doing this the right way.
Personal finance expert Jane Bryant Quinn is the author ofHow to Make Your Money Last.
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