As the Baby Boomer population continues to age, many of their adult children end up spending months or even years of their lives putting off careers, other personal goals, and responsibilities to care for their parents. This is typically done from a place of love, but if one sibling is doing more work (or feels that they are doing more work) than the others, it is not uncommon for issues to arise regarding what they feel they are entitled to from an estate for their efforts after their parent passes away. However, determining a fair caregiver compensation from an estate is more complicated than adding up how much work one sibling did.
At Gokal Law Group, we have helped countless beneficiaries enforce their probate rights against family and nonfamily caregivers and successfully recovered millions in settlements and trial verdicts for clients.
What’s a Fair Caregiver Compensation from an Estate?
In many situations, the caregiver has an informal agreement with the relative they cared for. To make matters worse, there is little legal support available to compensate family caregivers. Fair caregiver compensation from an estate could include:
- Monetary payments
- Reduced room and board in estate property
- A combination of both
Unless the caregiver is a child whose siblings are willing to work with them, or compensation is outlined in a contract, trust or will, receiving caregiver compensation from an estate is incredibly difficult.
If a child decides to be a caregiver for a loved one, it does not automatically entitle them to payment or a larger portion of the parent’s estate if nothing is in writing, especially in the trust or will. Still, when a sibling devotes a substantial amount of their time to caring for a loved one, they often feel there is an unspoken promise of compensation.
In fact, should a trustee pay a caregiver out of the estate for the services they provided and this distribution was not detailed in the trust document or some other contract, this is a severe breach of fiduciary duty, and pursuing trust litigation is crucial to recover losses.
Also, it’s important to remember that under California law, there is a presumption of fraud and undue influence when leaving gifts to non-family caregivers, meaning that if a decedent does leave a gift as compensation but there is no written statement confirming that they are acting of their own free will, it is highly likely that you can successfully contest it.
Let’s look at a case study of a similar situation that illustrates the complications we see arise when a family member seeks caregiver compensation from an estate.
Related Article: Caregiver Inheritance Laws: What Can I Do When a Caregiver is a Beneficiary?
A Case Study: Getting Caregiver Compensation from an Estate
In the case of the Estate of Olivo v. Commissioner, Anthony Olivo was a tax lawyer who eventually ended up providing almost full-time care for his mother and father. Anthony worked in law firms from 1976 to 1988 and eventually opened his own practice. However, by 1994, because of the round-the-clock time he had to devote to caring for his parents and their failing health, it became hard to maintain his practice.
Therefore from 1994 to 2003, Anthony lived with his parents, caring for them day and night. During this time, he earned no significant income from his law practice. When his parents passed, Anthony felt like he deserved compensation and requested the court compel the estate to pay him for fees, administrator’s compensation and accountant’s and attorneys fees.
During this case, the court noted that Anthony had provided service with extraordinary care and that his efforts were admirable. But because his mother’s estate did not establish that Anthony was entitled to the pay, they ruled against him.
Anthony didn’t keep time records, prepare contracts or invoices, or keep a record of the value of the services he offered. Contacts, invoices, and good record-keeping are just as important in a family as anywhere else.
“The issue, ultimately, was that there were no written agreements and little evidence that the family even agreed to pay him this way. There was no contract or firm evidence of how much his services were worth. For beneficiaries, if a sibling demands a greater share of the estate because they claim they helped their parents out more toward the end of their life, it’s important to know that the law will likely not be on their side, especially if you work with a trust litigation lawyer. though we do advise Alternative Dispute Resolution in these situations to avoid irrevocable damage to relationships.”
– Andrew Micaraset, Associate, Gokal Law Group
Related Article: How Do I Sue a Trustee with an Orange County Trust Litigation Attorney?
Is a Caregiver Stealing from Your Inheritance? We Can Enforce Your Rights!
Is a family member trying to get caregiver compensation from an estate you are a beneficiary of after your loved one has passed? Well, if there is no contract in place or a trust or will provision discussing an increased share of the estate, and there are no records and invoices for their services, the law is likely on your side. Working with a premier trust litigation attorney as soon as possible is crucial, even if the trustee or executor has already made the distribution to them.
Visit our Contact Page to schedule a free consultation and enforce your rights if a caregiver is attempting to steal from your inheritance.
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