Many individuals are acting as caretakers to aging relative. In such cases it is wise to consider having actually a written caretaker agreement in place.
Many member of the family invest many hours a week supplying take care of a senior relative without understanding that being compensated for that care can be a great tool for moving resources without sustaining a charge if the senior later applies for long-term care Medicaid.
While the majority of people enjoy to offer this care and do not anticipate to be compensated, doing so can eventually benefit the senior. Private care often postpones the requirement for long-term competent nursing care. If the requirement for center care emerges, individuals can maintain no more than $2000 in countable assets to get Medicaid assistance to pay for the cost of the facility. If the Medicaid applicant has transferred properties without settlement, Medicaid views these transfers as presents and punishes the applicant. Through making use of a caregiver arrangement, nevertheless, the senior can pay a family member for the care provided, thus accomplishing a transfer of properties, however avoid the penalty.
A caretaker arrangement recognizes the person in need of care, the medical condition demanding care, the individual who will be offering care, and details the specific assistance that the caretaker will render. Care may be provided daily, weekly, month-to-month, or on an as-needed basis. The contract mentions a pre-determined rate of spend for those services. Typically, these agreements address concerns including:
* Transferring the senior to medical appointments
* Running errands for medications, food, individual products, etc.
* Carrying the senior to social functions
* Helping with activities of daily living
* Preparing meals
* House cleaning services
* Laundry services
* Financial management
Once a caretaker contract is signed, the senior can start compensating the caregiver for services offered under the agreement. If the senior later requests long-term care Medicaid, these payments are not dealt with as presents, however rather, payment for services rendered. Additionally, usage of a caregiver contract provides defense for the member of the family against claims from other family members if a conflict later on develops about why the caregiver was receiving money from the senior.
The caretaker must keep detailed logs about the services performed and is needed to pay taxes on the income received. Caretaker agreements can be utilized with any member of the family except the partner of the person in need of care. They can also be used with non-relatives who are working independently rather than for an established home care company.
Caregiver contracts can not be utilized retroactively. Rather, the signed caregiver agreement should remain in location before services are offered and payment is made. Thus, it is very important to talk with an elder law attorney instantly if you are offering or pondering offering caregiving services to a loved one.