Advice for Adult Caregiving

Adult children who become caregivers often pay a steep price. According to a 2011 MetLife study, women older than 50 who leave the workforce early to fulfill this role forfeit about $324,000 in wages, Social Security payments and retirement benefits. However, with some smart strategies, you can avoid sabotaging your financial future. 

Look into potential tax breaks.

As noted in a recent article in Oprah Magazine, titled "Sanity-Saving Secrets For Caring For Your Aging Parents," an elderly parent may be claimed as a dependent if their annual income is less than $3,900 and you provide more than 50% of their financial support. Their medical expenses may also be deductible.

If you're a full-time caregiver, don't use your 401(k) or IRA for living expenses.

There's a 10 % penalty for an early withdrawal. The original article also advises to do whatever you can to keep your day job, even on a modified schedule. If your employer isn't helpful, you may be eligible for up to 12 weeks of unpaid time off through the Family and Medical Leave Act, allowing you time to make other arrangements.

If you have to quit work or go part-time, talk to your siblings and other family members about reimbursement for your services.

Once you have analyzed what you stand to lose in lost wages, then negotiating a salary needs to be a top priority. At a minimum, you should have enough for basic expenses, including housing, food, insurance, and IRA contributions. If your parents are footing these bills, speak with a qualified and experienced elder care attorney to make sure you're not jeopardizing your parents' Medicaid eligibility. Ask for a salary that offers you financial stability and peace of mind, both of which are critical for every caregiver.

Naturally, you should not approach this important responsibility without consulting an experienced elder law attorney.

Reference: The Oprah Magazine (December 19, 2014) "Sanity-Saving Secrets For Caring For Your Aging Parents"

No Comments

Leave a comment
Comment Information

Upcoming Workshops

3 Easy Steps To Protect Your "Stuff" This workshop addresses frequently asked questions and common misconceptions on Wills & Trusts, Asset Protection, Nursing Home Issues, and Medicaid Qualification.

Join Now! More Workshops

Call Us Today To Schedule A Consultation

We are ready to help you start planning. To schedule an initial consultation, call us at 770-822-2723 or 866-735-9628. You may also contact us online.

ESTATE PLANNING LAW GROUP OF GEORGIA,

Johns Creek Office
11555 Medlock Bridge Road, Suite 100
Johns Creek, GA 30097

Toll Free: 866-735-9628
Phone: 770-822-2723
Fax: 770-573-3379
Map & Directions

Lawrenceville Office
1755 North Brown Road, Suite 200
Lawrenceville, GA 30043

Toll Free: 866-735-9628
Phone: 770-822-2723
Fax: 770-573-3379
Map & Directions

map

How can we help you?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close