Are there any published standards for paying a caregiver or suggested percentages for compensation from the remaining estate?


I am going to work with our attorney to revise a will for my uncle. He wants to compensate one of his children who steps up to be his care-giver (takes care of him whether that be in person or with help of a nursing home and also manages all of his financial matters involving his property). I want to know if there are any published standards for compensation of the care-giver or if there is a suggested percentage the care-giver should receive from the remaining estate assets before it is divided out.

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I'm happy your uncle is doing this. If a standard is needed, you could check with the hourly rates at an in-home care agency. However, knowing that a relative who loves the person is giving up valuable personal, or even work time, is priceless. I hope, too, that he is giving this person some compensation now, and will also leave something in the estate if there is anything left (if he goes into a nursing home the money goes very fast). Thanks for helping with this important work.
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I don't know about standard rates and percentages, but I think this is a very sensible and responsible act to first compensate the caregiver and then divide the rest of the estate. I commend your uncle!

I hope that Uncle is also providing compensation in the here-and-now, and not making the caregiver wait until the will is read. It is wonderful to provide an extra reward to the caregiver out of the estate (assuming there is any estate left), but there should be monetary recognition for a difficult and important job as it is being performed.
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Standards vary by locale. It seems you kinda have 2 different situations - compensation for personal care services and then one for financial management including real estate. For personal care, you can contact 3 or 4 in home health care companies to do an evaluation of your uncle and then you base your compensation on those figures. Now you will have to deal with calls from them for weeks as they will want the business........Rates vary, when I did this for my mom it was $ 18 - 25 hr with a 4 hr minimum 3 times a week. The caregivers were lower level education. If the family member has any type of health care training, then you can pay lots, lots more and justifiably so. What the attorney will likely do is draw up a "personal services contract" and pay based on the community standards. The payments should/will get a 1099 too.

For the property management, lots of Realtors do this and the rates are based on what the rental's go for with them getting a 10 - 15 % of the rental as well as being the Realtor on any and all current and perhaps even a set # of years future property sales if it's anticipated to be that type of estate. I'd talk with a couple of management companies to see what system and pay is done in your area.
Whatever the case, they need to keep meticulous records as to time spent on uncle and his health care needs and real estate needs and someone needs to approve and pay them, like an attorney.

If the child who might be the one doing this has income issues, then speak with the attorney about creating a LLC or Inc for them for doing these tasks under the business umbrella of the LLC or INC. Uncle would pay the LLC for his care and property management. This could be really good if later on, years from now there is any family friction along the lines of "but he paid you $$$ already" rant.

Your uncle sounds like a rare gem, can we clone him?
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