There is the possibility of establishing a caregiver contract (also called a personal-service or personal-care agreement or family-care agreement) for services an adult child might provide. Such an agreement usually specifies what tasks the caretaker will perform, how often (and for how many hours), how much the caretaker will be paid, when payment will be made, and how long the agreement will stay in effect. Flexible language can be built into the care agreement to allow for additional duties and an open-ended period of time, and usually a statement is included so that the document can be changed by mutual agreement, in writing, by both parties. It is wise to seek the advice of elder care agencies or an attorney or both in deciding the language and terms of the agreement. Laws vary from state to state, and there may be implications related to seeking Medicaid assistance at some point in the future. We would like your feedback on this Personal Finance Frequently Asked Question.

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