Attack on American Family??

Families often must leave their jobs to take care of their parents or loved ones.  This creates a loss of income to the family’s budget.  To illustrate, consider the daughter who quits a job paying $24,000 a year to take care of her mother.  Daughter’s family now must make it on $24,000 less.  A common long term care plan will take into consideration family members who suffer this type of loss and attempt make up for it.

In Florida, a common process is for the ill family member to compensate their family for helping them.  Without the family the only alternative is to hire corporations to take care of the sick individual or potentially place the sick family member in a facility before it is necessary. 

However, the Florida legislature is now attacking this type of planning.  The theory is that families are obtaining government benefits by “giving” all their money to their family.  The result of this legislation would cause families to pick between caring for their parents/spouses or risking their financial future. 

This logic is flawed for several reasons.  First, gifts to family members are already penalized under both Federal and State law; therefore, if this is a gift there will be a penalty.  Second, the contract must be an arm’s length transaction (i.e. tax’s are reported and a fair wage is set).  Third, the same money (often at a higher rate) will be paid to another non- family member individual. 

Finally, supporters of this legislation will say that families do not spend the money but hold it for the sick individual.  Assuming this is correct.  SO WHAT!  The money has been taxed just as any other earned income is taxed.  Using this logic no one should spend any of their money on their ill family. 

At a time when we are see the importance of family support in the wake of the horror in Japan.  Why the legislature has picked a fight with the American family is unknown.  These measures will have no cost savings.  They will not reduce the budget.  They may help some corporations but not in a significant way as many seniors will simply turn their back on private support, or families will put their financial future at risk to care for their loved ones.  I would recommend people in Florida contact their representatives and senators and ask them why families shouldn’t be allowed to help families without risking their financial future.