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Caregiver Contracts

A Caregiver Contract is essentially an employment contract between aging parents and their children. It details who will be the caregiver, what services the caregiver will provide, how the caregiver will be compensated, and how conflicts about caregiving within the family will be resolved. It is drawn through conversations between parents, their children, and their attorney.

While nationally 1 in 4 households provide care for an older adult, in Kent County, that number is 1 in 3 households. This arrangement has blessings, to be sure, but it also has costs: 35% of caregivers end up leaving paid work to care for a parent, resulting in lost wages, social security and retirement contributions. Not to mention hours lost while the caregiver is still employed.

It’s also easy to imagine the conflicts that can arise between family members due to stress, guilt, and the financial burden. When you add lack of communication between siblings into the mix, the stress-level rises still more.

Family Harmony

One of the best ways to take care of this situation before it becomes a problem is to establish a Caregiver Contract. It may seem excessive to put a contract in place, but it puts all the issues in the open when there is no crisis so the entire family can work together to establish a game plan to help the parents as they move through their life and need growing levels of care from family members.

What’s in a Caregiver Contract?

Who will be the initial caregiver?

Who will be second in line—in case the initial caregiver is no longer able or willing to serve?

What services will the caregiver provide?

How will the caregiver be compensated?
• options include hourly fee, monthly stipend, lump sum for every year of service, additional bequest in the parent’s will.

How will the family communicate about their parents’ care issues?
• monthly telephone conferences, written reports or family meals are preferred to reliance on email.

How will conflicts with the caregiver be resolved (aka: how can the caregiver be fired)?
• proper planning helps families avoid squabbles and expensive probate court disputes

Our Elder Law attorney, Brian J. Plachta, is a member of the National Association of Elder Law Attorneys. He knows, through both training and personal experience, the stress that disagreements about care for senior family members can produce. Please call 616-458-3994 to begin the conversation.