Lots of people are acting as caregivers to aging member of the family. In such cases it is smart to consider having actually a written caretaker agreement in place.
Lots of member of the family spend various hours a week offering take care of a senior relative without realizing that being made up for that care can be a fantastic tool for transferring resources without sustaining a penalty if the senior later requests long-lasting care Medicaid.
While many people are delighted to provide this care and do not anticipate to be compensated, doing so can eventually benefit the senior. Private care frequently postpones the need for long-lasting experienced nursing care. However, if the need for facility care develops, people can maintain no more than $2000 in countable assets to receive Medicaid support to pay for the cost of the facility. If the Medicaid candidate has actually moved possessions without payment, Medicaid views these transfers as gifts and punishes the applicant. Through using a caregiver arrangement, however, the senior can pay a household member for the care offered, therefore attaining a transfer of possessions, but avoid the penalty.
A caretaker agreement identifies the individual in requirement of care, the medical condition requiring care, the person who will be offering care, and details the specific help that the caretaker will render. Care might be provided daily, weekly, month-to-month, or on an as-needed basis. The arrangement specifies a pre-determined rate of spend for those services. Typically, these contracts address issues including:
* Transporting the senior to medical appointments
* Running errands for medications, food, individual products, etc.
* Carrying the senior to social functions
* Helping with activities of everyday living
* Preparing meals
* Housekeeping services
* Laundry services
* Financial management
Once a caregiver arrangement is signed, the senior can begin compensating the caretaker for services offered under the agreement. If the senior later obtains long-lasting care Medicaid, these payments are not dealt with as presents, however rather, payment for services rendered. In addition, usage of a caregiver contract provides protection for the relative against claims from other loved ones if a conflict later develops about why the caretaker was receiving cash from the senior.
The caretaker should keep in-depth logs about the services performed and is required to pay taxes on the income received. Caregiver arrangements can be used with any relative except the spouse of the person in requirement of care. They can also be used with non-relatives who are working individually rather than for a recognized home care company.
Caregiver contracts can not be made use of retroactively. Rather, the signed caretaker arrangement should remain in place before services are provided and payment is made. Hence, it is essential to consult with an elder law attorney instantly if you are offering or considering offering caregiving services to an enjoyed one.