Lots of people are working as caretakers to aging relative. In such cases it is wise to think about having a written caretaker contract in location.
Numerous member of the family spend numerous hours a week offering take care of an elderly relative without realizing that being compensated for that care can be a terrific tool for transferring resources without incurring a charge if the senior later requests long-lasting care Medicaid.
While the majority of people are delighted to provide this care and do not expect to be compensated, doing so can ultimately benefit the senior. Private care typically postpones the requirement for long-lasting competent nursing care. However, if the requirement for facility care develops, people can keep no greater than $2000 in countable possessions to receive Medicaid assistance to pay for the cost of the center. If the Medicaid candidate has transferred properties without compensation, Medicaid views these transfers as presents and punishes the applicant. Through using a caregiver contract, however, the senior can pay a household member for the care offered, thereby attaining a transfer of properties, however avoid the penalty.
A caretaker contract determines the person in need of care, the medical condition requiring care, the individual who will be providing care, and details the particular help that the caregiver will render. Care may be provided daily, weekly, regular monthly, or on an as-needed basis. The agreement specifies a pre-determined rate of spend for those services. Usually, these contracts address concerns including:
* Carrying the senior to medical appointments
* Running errands for medications, food, personal items, etc.
* Transferring the senior to social functions
* Helping with activities of everyday living
* Preparing meals
* Housekeeping services
* Laundry services
* Financial management
Once a caregiver agreement is signed, the senior can begin compensating the caretaker for services supplied under the arrangement. If the senior later gets long-lasting care Medicaid, these payments are not dealt with as presents, but rather, payment for services rendered. In addition, use of a caregiver arrangement supplies protection for the member of the family versus claims from other family members if a conflict later occurs about why the caregiver was getting cash from the senior.
The caregiver must keep in-depth logs about the services performed and is needed to pay taxes on the income received. Caregiver contracts can be used with any relative except the partner of the person in need of care. They can likewise be used with non-relatives who are working individually instead of for a recognized home care company.
Caregiver contracts can not be used retroactively. Rather, the signed caregiver arrangement should remain in location prior to services are provided and payment is made. Hence, it is essential to talk with an older law lawyer right away if you are providing or considering providing caregiving services to a loved one.