With the limited availability of places in aged care facilities, rationed community care packages and a Government encouraging people to stay at home as they age, there is greater pressure for families to care for elderly parents within the bosom of the family.
Often this means adult children may have to give up their job or their business to do so. This transition in a family's landscape can have all sorts of implications and there is no substitute but to ensure that everyone has a clear understanding of the nature of the arrangement and everyone's roles and responsibilities. This is where a written Family Agreement becomes important.
Family Agreements are arrangements in which (usually) older people transfer property, or pay compensation to, someone (usually a member of their family) in exchange for a promise of "care for life".
While the thought of such an agreement with a family member may seem mercenary at first, the reality is that unless the arrangement is documented there may not be a clear understanding of what it means not to mention how serious it can be for many adult children who simply cannot afford to limit their working hours or even to give up their job to look after ageing parents without some form of compensation.Important things to consider when preparing to take on the care of an elderly family member
- What are the tax and social security implications?
- Do all family members have a thorough understanding of what the care for life promise embodies?
- What impacts will this arrangement have on other legal documents such as a Will, an Advance Health Directive or Enduring Power of Attorney?
To find out more download our free Caring for an Ageing Parent at home guide or contact Brian Herd by email at email@example.com