Get It in Writing

It’s not unusual for someone to provide personal care for an incapacitated or elderly family member. It’s just something we do for each other if we can. Sometimes we even leave our jobs and our homes to provide that care, and that can create financial hardship. Particularly in that situation, people may ask if the caregiver can be paid for their time.

Primarily because the law presumes that personal care provided to family members is gratuitous, the answer is “it depends.” So, when can a family caregiver be paid?

If the care is being provided to a Medicaid recipient, a family caregiver can be paid if there is a written contract detailing the services to be provided and the compensation to be paid. The contract can apply only to future services and must be approved by Medicaid. Payments made under a contract that doesn’t meet Medicaid criteria can lead to serious consequences for the Medicaid recipient as the money paid can be deemed a gift, which could lead to disqualification from benefits.

The Veterans Benefits Administration is more relaxed when it comes to family members providing care to veterans receiving benefits, but prudence dictates that the Medicaid contract rules be followed in case the veteran needs Medicaid in the future.

Personal care contracts are also important, together with a time log detailing the services rendered, when an individual is subject to a conservatorship as all expenses paid from a protected individual’s funds must be approved by a judge.

Contracts are not required when neither Medicaid, the VBA, nor a court are in the picture, but they are still a good idea. You would be surprised how often heirs challenge payments made from an elderly or otherwise vulnerable family member’s funds.

If you need assistance with a caregiving contract, you can reach us at 248.477.6300.