As we grow older, caregivers often become more than just helpers—they become trusted companions who provide comfort, support, and daily care. Whether your caregiver is a family member or a professional who has been by your side for years, you may wish to thank them in a meaningful way through your estate plan.

Including a caregiver in your estate plan is a thoughtful gesture, but it’s important to do so carefully to ensure your wishes are clear and legally sound.

Why You Might Want to Include a Caregiver

Caregivers often take on demanding responsibilities—physically, emotionally, and sometimes financially. Recognizing their dedication by including them in your estate plan can help ensure they’re supported and appreciated for the care they’ve provided.

Options for Including a Caregiver

There are several ways to leave something to your caregiver:

• Monetary Gifts or Bequests: A lump sum or percentage of your estate can be left to your caregiver through a will or trust.
• Personal Property: If you’d like them to have something specific—a vehicle, furniture, or sentimental item—you can include that in your plan.
• Trusts: Establishing a trust can provide ongoing financial support and can be structured to minimize disputes or tax implications.
• Beneficiary Designations: You can name your caregiver as a beneficiary on a bank account, retirement account, or life insurance policy.
• Caregiver Agreement: If care is ongoing, a formal personal services contract can ensure fair compensation now and provide documentation for future reference.

Protecting Your Intentions

Including a caregiver in your estate plan may raise questions from other beneficiaries, especially if the gift is significant. To prevent misunderstandings or legal challenges:

• Document everything clearly in your estate plan
  
• Consider adding a letter explaining your decision
  
• Make updates while you are of sound mind—some even obtain a letter of competency from their physician

Important Note

Some states place restrictions on gifts to caregivers, particularly non-relatives. These rules aim to prevent undue influence or coercion, especially in cases involving vulnerable adults. For this reason, it’s essential to work with an estate planning attorney—laws may vary by state.

We specialize in educating and helping you protect what you have for the people you love the most. Contact us to learn more about how we can help.