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I want to be fair.

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In addition to the article and sample Caregiver Agreement posted here on AgingCare.com, talk with an Elder Law Attorney in your state. The Attorney should be up to date on the rate of compensation accepted by your State's Medicaid Agency, so that your father won't be disqualified from Medicaid if he needs if in the future. The Attorney should also be able to help your father to qualify for Medicaid home care programs available in your State.
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Unless your dad is quite wealthy, he really cannot afford to pay you what it is worth. An agency would get $20 per hour, plus shift differential for 2nd shift, and again for 3rd

You must get a written agreement, and taxes must be withheld...so get a payroll service to process all this.

Now, there is a huge issue...since your Dad has Alzheimer's...he is likely not capable to sign any contract. You could be putting yourself in a world of hurt. If there is no POA...you could be accused of financial abuse of an elder. You could be causing your Dad to not qualify for Medicaid in the future (5 year look back on all expenditure). If you are the POA....you cannot sign this contract for your Dad....you cannot sign a contract as POA if you would gain from the contract.

So...lots of issues.

Most caregivers are paid little to nothing. Because of all these triangles...and the very high cost of actually paying anything close to what it is worth
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See an elder care attorney. If it's even a possibility that he may need Medicaid to pay for nursing care sometime in the future, you want to ensure that this is done properly now. Otherwise, he might be denied timely Medicaid services in the future
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What to pay? Get a geriatric care manager to complete a needs and ability assessment of dad, then prepare an estimate of what cost of outside care would be. You would then be able to prepare a contract and pay yourself something comparable/fair. Get an attorney to prepare the contract, make sure you have a letter from dad's doc to document the level of care he needs and what type of care would be the best for him.
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He would normally be put in memory care in a home. A nice memory care home charges between $5 - $6k a month all inclusive. Or more!

I would definitely make up a rental agreement for a furnished room in your home which spells out all the services and furnishings you agree to provide. With a security deposit for damages. Open ended where one or both agree to 30 days written notice to end the contract. I would also state in the contract that lessee is aware that you don't have certification of any type in health care with a box for his initials next to that sentence.

Hopefully, he is at the stage where he knows he is signing a contract so it will be binding. Maybe taking him to his Dr. to ask him at the time of signing that the patient knew he was signing a rental agreement and ask the Dr. to put notes to this in his patient history?

If your thinking there is a time he would be on Medicaid in the future, I would call them and ask if you can rent a room out to your father with a contract for rental payment?
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Evans7, see an attorney. The person who wants to hire you is incompetent and as a POA you cannot hire yourself. Nor would you want to. No single person can do what you are contemplating.
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As POA you should have a clear picture of his net worth and his income, you should also do some research on the cost of assisted living or nursing homes in your area and the cost of outside caregivers brought into his home. Once you have all the facts you can decide what you consider to be "fair", and that is usually well below what he would have to pay an outsider.
As Katie mentions there are complications to this plan that must also be considered, beyond those she mentioned are there sibs who will objects or believe you are freeloading off your father? Is his home practical for his physical needs both today and in the future? What plans do you have for help so that you get respite? And as I learned, sometimes despite our plans and good intentions we can not see it through until the end and he may have to spend some time in the NH, have you planned an exit strategy?
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Evans7, that is great that your Dad would like to pay you for his care, that is unusual. Yes, you would need a caregivers employment contract, stating what are your duties, how many hours per week, what is your hourly salary, any days off, etc. The tough part, who would fill in for you on your days off?

https://www.agingcare.com/articles/personal-care-agreements-compensate-family-caregivers-181562.htm

With Alzheimer's, as you probably already know, it never gets better, only worse. So you need to talk to Dad that if your caregiving becomes too overwhelming, would he allow professional caregivers from an Agency to come in to help, or would he prefer to move to Assisted Living/Memory Care. Take Dad around to some of the places to give him an idea for the future. Now, these are Assisted Living, not nursing homes. If Dad can budget that.

Since I couldn't do hands-on caregiving being I was a senior myself, my Dad hired around the clock care. It cost him $20k per month. Yikes !! Later Dad wanted something less costly, so he moved into Independent Living which was around $5k per month. then moved to Memory Care which was closer to $6k per month. All Dad wanted was a place to sleep and good meals. He loved the food there, plus he had housekeeping and linen services as part of the rent.

Something to think about for the future needs.
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All of the answers so far are great. You have gotten excellent advice. The only thing I want to add is that one person cannot care for another 24/7. Should you choose to go through with it, you must build in respite care for yourself every day so that you can sleep. You also need time off every week. Is there enough money for that? All the care your dad will need will be shockingly expensive.
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Thanks to all for your advice. I hate taking anything from my dad but I have given up a part-time job to care for him. And I would never expect to be paid what a professional facility would cost. I know the reality is that he will likely need to go to a nursing home at some point but we're not there yet. I want to keep him at home as long as possible and spend the best days he has left with him.
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