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Thu 23 Nov, 2017 10:05 am
For the past 2 1/2 years, I have been managing my elderly aunts affairs. She lives in California, I live in Washington. She has dementia and requires 24 hour care in her home. My management includes looking after her money, paying for care, paying for service people, paying taxes, contracting with service people for upkeep as necessary on the house and a welfare check on site once or twice a year. I recently paid myself $150/mo. for my efforts back dated to when I first took over her affairs 31 months ago. I checked with her attorney before doing so and this is legally appropriate for someone in my position. The attorney says it is irrefutable in court as long as I am not taking egregious sums. Up until now I have not misspent a dime of her money but I suddenly feel terribly guilty about this. I've been afraid to tell any of her relatives/heirs. Financially she is just fine, The sum I took is negligible in the scheme of her estate. Looking for some reassurance that what I did was okay. Please help, I want to be a good nephew.
@rar4663,
I see no ethical problem, and with the legal consultation there shouldn't be any legal problems.
Edit: Any wage and salary compensation will be subject to federal income tax, and maybe state as well. Might even be subject to Social Security and Medicare taxes. If you also receive reimbursement for direct expenses, I don't believe it is subject to taxation. If you haven't researched these issues, you should.
You should be fine. If your family had hired an outside caregiver and trust manager, then that person would not work for free, either.
@rar4663,
I also don't see any problem with this. I would not have a problem if someone were taking $150/month for performing this service for anyone in my family.
How many hours are you spending each month? If I were trying to figure a fair amount, I would go off of hourly rate. I would probably take $50 an hour (which seems fair for a job with no benefits).
@maxdancona,
I believe I would also favor an hourly rate.
Thank you for the responses. I am charging $60/hr x 2.5 hrs/month and it is indeed subject to federal income tax. I feel some relief, thank you, especially from the person who compared what I'm doing with having a paid pro do it.
If I were the recipient of what I do, I would certainly expect to be charged for it. Thank you all so much, I really needed the validation.
@rar4663,
You're doing well (and it's a very tough task you're undertaking, as you well know).
Don't let any of this bug you - let it be the least of your concerns.
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