Another legal consideration is that the beneficiary is not able to sign the contract. The person who holds the power of attorney or the guardian or the curator can sign. If the caregiver also holds the beneficiary`s power of attorney or guardianship, you should consult a lawyer. If you don`t think there`s a lawyer, read examples of agreements in the Resources section. A guardian is someone who is paid to care for another person, usually an elderly person or someone with special needs. A tutor is paid for daily care such as transportation, meal preparation, household management and other individual needs. As a general rule, the tutor will follow a weekly schedule set either in the agreement or by the parties. Once the amount of the contract is ”claimed” by the manager, it cannot be returned or returned (or Medicaid would consider it a resource available to the applicant). The manager cannot obtain more than the fair value of the services provided.
The average number of weekly hours the tutor will work must be taken into account, in addition to the current rate of pay in the Community for these services. The life expectancy of the elder is also a factor. Payment to the guardian is not considered a gift. Although non-binding, the general understanding is that the caregiver will use the money for the elder if necessary. Depending on the situation, the guardian may be considered a salaried worker or an independent contractor under national and federal law. The personal services agreement must also be forward-looking and not retroactive (a manager cannot be paid for previous services or provided). In the case of a contract with a family member, it is advisable to consider the agreement as a legal document. If your parent receives state-subsidized home care, the agreement will show the state where the money is going and what kind of services it is for.
In addition, a care agreement can compensate for potential confusion among family members concerned about heirs` bequests and subsequently avoid misunderstandings about the reduction of money that may be hereditary. www.familyassets.com/medicaid-planning/resources/caregiver-agreement In addition, the guardian (often a family member who worked for free) receives real compensation for his benefits, which will relieve them of some financial stress. For the elder, tax issues may arise when the elder`s estate is sold to make the payment under the contract. However, there is no tax on donations, since fair value is paid in exchange for payment under the contract. For the guardian, the payment to their beneficiary must be indicated as income on their tax return. When preparing an agreement, ask yourself what any care task means. For example, define ”personal care”: does it include bathing, dressing, dental hygiene? If you define the care tasks and the time allotted, the result will be a more realistic assessment of care. You don`t necessarily need to hire a lawyer, but it may be advisable to enter into a contract. It depends on your circumstances and the complexity of an agreement that requires your family. If you are considering a pre-paid lump sum care contract, you should contact a lawyer. A contract is complex and it is more difficult to compensate for the ”fair market” in the value of care services.