Many individuals are serving as caregivers to aging household members. In such cases it is smart to think about having a composed caregiver arrangement in location.
Many household members invest numerous hours a week supplying care for an elderly relative without understanding that being compensated for that care can be a great tool for moving resources without incurring a charge if the senior later gets long-term care Medicaid.
While the majority of people are delighted to provide this care and do not expect to be compensated, doing so can eventually benefit the senior. Private care typically delays the need for long-lasting skilled nursing care. If the need for facility care develops, individuals can retain no more than $2000 in countable assets to receive Medicaid support to pay for the cost of the facility. If the Medicaid applicant has transferred properties without compensation, Medicaid views these transfers as gifts and punishes the applicant. Through the usage of a caregiver contract, however, the senior can pay a relative for the care supplied, thus achieving a transfer of properties, however prevent the penalty.
A caretaker contract recognizes the individual in requirement of care, the medical condition demanding care, the individual who will be providing care, and information the particular support that the caregiver will render. Care may be offered daily, weekly, regular monthly, or on an as-needed basis. The arrangement mentions a pre-determined rate of spend for those services. Typically, these agreements address issues including:
* Transferring the senior to medical appointments
* Running errands for medications, food, personal products, etc.
* Transferring the senior to social functions
* Assisting 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 contract. If the senior later looks for long-term care Medicaid, these payments are not treated as gifts, but rather, payment for services rendered. In addition, use of a caretaker contract supplies security for the household member against claims from other loved ones if a conflict later emerges about why the caretaker was receiving cash from the senior.
The caregiver must keep detailed logs about the services performed and is required to pay taxes on the income got. Caregiver contracts can be used with any member of the family except the partner of the individual in requirement of care. They can also be utilized with non-relatives who are working independently instead of for a recognized house care company.
Caregiver arrangements can not be utilized retroactively. Rather, the signed caregiver contract need to remain in place prior to services are offered and payment is made. Hence, it is very important to talk to a senior law lawyer immediately if you are supplying or pondering offering caregiving services to an enjoyed one.