If you are a senior and plan to move in with one of your children, there are a few things to settle. Talk about finances, privacy and duties.
Finances: How much will you, the parent, contribute on a monthly basis and what will you receive in return? The payments made to children can be treated as a gift. If this occurs, it can create a problem down the road should an aging parent no longer be cared for at home, and they need help through the Medicaid program to pay nursing home bills. I recommend both the parent and child sign a written contract describing the fee and the duties to be performed by the child. This will be taxable income to the child, so talk to your accountant about how much to pay for social security, unemployment and any other taxes. If there is no written agreement, and you apply for Medicaid some time in the future, the payments to a child will be considered a gift and delay the ability to qualify for Medicaid.
Privacy: Will there be a separate room or portion of the house for the parent? Is it expected that the family will always participate in events together? Events can be school activities, watching TV, movies, eating out, church, vacations or just shopping.
Duties: Who is doing what for household chores. If the parent no longer drives, who will provide transportation? If the parent needs a caregiver and the family works, what arrangements can be made?
The best approach is to talk about your mutual expectations and write it down. After a month, you may want to have another meeting to see what parts of your agreement need to be adjusted.
