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High stress reported by informal (unpaid, mostly family) caregivers providing functional assistance to chronically disabled elders residing in the community is a very powerful predictor of care recipients' subsequent transition from community living to long-stay nursing home residence. Factors associated with reports of high caregiver stress include high physical strain, high financial strain, care recipients having frequent behavior problems, caregiver reports of their own sleep being frequently disturbed, and caregiver reports of poor health, needing help with caregiving and/or a break from caregiving. These stressors could potentially be reduced by appropriate interventions.