Many individuals are working as caregivers to aging household members. In such cases it is smart to consider having a written caregiver arrangement in location.
Numerous member of the family invest various hours a week providing take care of an elderly relative without recognizing that being made up for that care can be an excellent tool for transferring resources without sustaining a penalty if the senior later obtains long-term care Medicaid.
While the majority of individuals more than happy to offer this care and do not anticipate to be compensated, doing so can ultimately benefit the senior. Personal care frequently postpones the need for long-term competent nursing care. Nevertheless, if the requirement for facility care occurs, individuals can keep no greater than $2000 in countable properties to receive Medicaid help to spend for the cost of the center. If the Medicaid applicant has actually moved assets without payment, Medicaid views these transfers as presents and penalizes the candidate. Through using a caregiver agreement, nevertheless, the senior can pay a relative for the care provided, thereby achieving a transfer of possessions, but avoid the penalty.
A caregiver arrangement determines the individual in requirement of care, the medical condition necessitating care, the individual who will be supplying care, and details the specific help that the caregiver will render. Care might be provided daily, weekly, regular monthly, or on an as-needed basis. The contract specifies a pre-determined rate of pay for those services. Usually, these contracts address issues including:
* Transporting the senior to medical appointments
* Running errands for medications, food, individual items, etc.
* Transferring the senior to social functions
* Helping with activities of everyday living
* Preparing meals
* House cleaning services
* Laundry services
* Financial management
Once a caregiver arrangement is signed, the senior can begin compensating the caregiver for services offered under the arrangement. If the senior later requests long-lasting care Medicaid, these payments are not treated as presents, but rather, payment for services rendered. In addition, use of a caretaker agreement provides defense for the member of the family versus claims from other loved ones if a conflict later arises about why the caretaker was receiving loan from the senior.
The caregiver should keep comprehensive logs about the services performed and is needed to pay taxes on the earnings received. Caregiver agreements can be utilized with any member of the family other than the spouse of the individual in need of care. They can also be used with non-relatives who are working separately instead of for an established home care company.
Caregiver arrangements can not be used retroactively. Rather, the signed caretaker contract need to remain in place prior to services are supplied and payment is made. Hence, it is essential to talk with an elder law lawyer right away if you are providing or contemplating supplying caregiving services to a liked one.