Posted by BEST FINANCIAL GROUP LTD

How to Pay Family Member for Eldercare

How to Pay Family Member for Eldercare

With the rise in the population of our older-age as well as increasingly impoverished and related aging illnesses and issues, the United State rapidly depends on paid family caregivers to take care of our loved ones.

Serving as a caregiver for a family member is among the most rewarding jobs you can do. Aside from spending quality time with your loved ones, you as well have the opportunity to make sure he or she gets the best available health care. 

An individual providing care for a person with dementia makes a lot of sacrifices. One of such sacrifices is giving up a job and benefits of employment.  A formal agreement can be reached among family members, and this can be a way to compensate the individual providing the care, in a situation where he or she is not able to lay hands on other employment. Many family members want to get involved in caring for their aged or ill family member, but this a significant time commitment duty which is not at the reach of many due to other involvement. A way of protecting the caregiver as well as the individual receiving the care is to reach an agreement and put it into writing.

Personal care agreement is a binding agreement also known as elder care contract; long term cares personal support services or caregiver contract. It is often referred to as Personal care agreement.

What is the Personal Care Agreement?

The agreement is typically between a family member who has decided to provide the service of a caregiver (caregiver) and the individual receiving the care (the care recipient).  The agreement is usually between an adult child and his or her parent, but other members of the family may be included, such as adult grandchild taken care of a grandparent. The agreement clarifies the expected task for appropriate compensation. It can serve in helping family members avoid conflict about who will be in charge of providing the care and what sort of payment should be given.

Fundamental Component of a Personal Care Agreement. 

 There are three basic requirements, and they include:

1. The agreement must be written form.

2. The payment must be in the future for the care provider (not for the services he has rendered in the past).

3. The caregiver must be given reasonable compensation. This implies that it must not be above the cost of a caregiver from a local agency.

Other information on the agreement includes:

a. Date to which the care begins.

b. Detailed clarification of the services rendered

c. How often the service will be provided.

d. the location of the services

e. the amount and when the caregiver will be compensated.

F. How long will the agreement be in effect?

f. A statement that permits the written agreement to be altered only by written agreement.

g. Signatures of the parties involved; this should include the Power of Attorney for an individual with dementia and the agreement date.

More details to consider: 

 Look into creating an 'escape clause' in a situation that one party decides to end the contract. Make use of a term such as This agreement stays effective until terminated via a written statement by any of the party.

Consider a port for the provision of a backup caregiver in case the caregiver becomes ill.

It should be noted that a personal care agreement can be altered at any time if both parties agree on the changes to be made.

Does the agreement require a lawyer?

It is not mandatory to consider the services of an attorney in every case. This choice will depend on the situations and the complexity of the conditions. The services of a lawyer maybe advice able when a contractual relationship is involved. If a lump-service structure or a pre-paid is considered it would be of help to find an attorney.

A monthly or bi-weekly salary for the caregiver is more comfortable to track especially for Medicaid. If any of the party feels uncomfortable about the proposed financial transaction or how the plans will impact qualification for Veterans benefit, Medicaid or any income-related programs, get the services of an attorney to avoid conflicts in the future. 

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