Should Family Members Be Paid for Providing Care to Parents?

rick kahlerAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Many of my older clients, aware of their declining physical capacities, are increasingly open to the idea of receiving in-home healthcare. It's an excellent way for seniors to maintain their independence and stay in their own homes as long as possible before needing the full array of assisted living or nursing facilities.

But in-home care is expensive. Professional caregivers can charge anywhere from $35 per hour for light tasks like housekeeping and meal preparation to $150 or more for attending medical appointments, coordinating healthcare, or managing financial matters.

One solution is to pay an adult child or other family member for providing the necessary assistance. This can be more affordable than hiring outside help. Since the family member doesn’t have the same overhead expenses as a commercial provider, a fair compensation rate is generally around 50% of what a commercial caregiver or professional advocate would charge.