Creating a care contract for rental is another financial decision that a family and an elder should consider before they take steps to move an elder in with them.
Creating a rental contact can also have tax benefits to you according to AARP If your parent is on SSI, their benefits can be reduced by 1/3 by moving in with an adult child and paying rent. The rental amount can assure that the parent will still be available for Medicaid .
The adult child can also claim the aging parent as a dependent if they are paying more than half of an elderly parent’s expenses for food, housing and medical supplies. Of course all this should be discussed with a geriatric care manager who should refer you to an elder law attorney to help you do all the research and set up these contracts before you make a decision to move a parent into your home or the aging parents consents to move.