Certainly, your father can pay your brother a fair rate for taking care of him. The nursing home cost is also a reasonable measure of what that rate should be, assuming your brother can provide care comparable or superior to that provided in the nursing home. I strongly recommend that your brother and father (or you on your father's behalf) enter into a written agreement as to what your brother will provide so that no misunderstandings will arise in the future. An experienced elder law attorney can help with this since he or she will have a good idea of the issues that may arise in the future. The attorney can also advise on planning steps that may be taken to save money if your father ultimately does need nursing home care. Finally, your brother needs to be aware that the payments to him must be reported as taxable income.