Paying a Family Caregiver? Why a Contract Could Be Necessary
When it comes to paying a family caregiver, financial advice gets complicated. But at least one thing is clear: be transparent, suggests an article at The Wall Street Journal‘s website. Tell family members, and consider a contract.
Particularly in situations where a care recipient may eventually need to rely on Medicaid, attorneys say it is important to draft a written agreement—often called a “personal care contract”—that documents the caregiver’s responsibilities and hours and sets a rate of pay in line with that of local service providers.
The article tells of one woman, Anne Stone, who had a contract to care for her father, until he entered a nursing home.
The payments had an unanticipated benefit: They also helped Mr. Stone deplete his savings so he could qualify for Medicaid. Without the employment contract, Medicaid would have considered all of the payments to Ms. Stone a gift made to hide assets, subjecting Mr. Stone to delays in coverage, says Mr. Bloom, the Stones’ attorney. To pass muster with Medicaid, he says, it is important to have such a contract in place before the services are rendered.
The article, “Should You Pay a Relative to Take Care of Mom?,” also mentions different types of payment arrangements, with ideas on the pros and cons.
If you have any questions about this post or need help finding senior-care options for a loved one, call 1-866-483-4896 to speak with a care advisor in your area.