Why should aging family members consider compensating those who regularly provide them with care?
Many Caregivers feel a sense of obligation to provide an aging family member with care, “because it’s what you’re supposed to do.” A formal agreement known as a Caregiver Agreement can provide options for both the Caregiver and the Care Recipient in the future. This can be important for the aging family member, or their spouse. If there is the possibility of Veterans Benefits or care in a Nursing Facility in the future.
Who are the parties to these agreements?
A Caregiver Agreement is between the Caregiver, normally a child or close relative, and the Care Recipient, normally a parent or grandparent. This is important because the Caregiver Agreement memorializes what is expected of both parties and more importantly, states that the Caregiver expects to be paid for their services.
What requirements must a Caregiver Agreement meet?
This Agreement, for estate planning and long-term care planning purposes, should include:
- A start date for services;
- Create a detail of the services;
- Match the Care Recipient’s financial plan;
- Detail of Caregivers compensation;
- Affirm the Caregiver’s status as an employee, not an independent contractor;
How is a Caregiver Agreement beneficial to me and my loved ones?
It’s often difficult for a child or close relative to accept payment for services that they normally provide out of love and affection. Caregiver Agreements can be very important to the Care Recipient because they can facilitate asset preservation down the road. This point is important from a Medicaid planning standpoint. You cannot have retroactive payments for “care services”.
Contact Kane & Crowell immediately at (615) 784-4800 if you or a family member are facing long-term care and health issues. It is our goal to make sure our clients have the quality of life they want and deserve.