Is There Some Sort Of Template To Make An Agreement For Care Of An Elderly Person

More than 34 million Americans served as informal (unpaid) caregivers during the previous year according to the AARP Public Policy Institute. Often, these are developed children caring for an aging parent. They could be providing minimal assistance with activities of daily living, as function of the normal aging process, or more extensive care as was the example with my mom and her battle with MS. As care needs become greater, its not uncommon for informal caregivers to quit their jobs resulting in a loss of income. In this article I will share a sample family caregiver agreement that you can download and hash out how these could be a win-win situation for both the caregiver and care recipient.

What is a Family unit Caregiver Agreement

Family caregiver agreements, also called personal care agreements or eldercare agreements, are written agreements between a caregiver and a care recipient.

Typically these agreements are between family members such as an developed child and an elderly parent. However, the caregiver and care recipient do not have to exist related.

This agreement clarifies the human relationship between the caregiver and care recipient, establishes clear expectations as to what type of care is to be performed (i.east., personal care, groceries, errands, etc.), spells out when and where the care will exist received, and includes details around how much and when the caregiver will get paid.

How Family Caregiver Agreements Work

Personal care agreements establish a formal business human relationship between the intendance recipient (employer) and caregiver (employee). It lays out the terms and conditions of employment in writing for which the caregiver will exist compensated for providing care. Having an agreement in writing ahead of time frequently helps to avoid potential family conflicts downwardly the road as information technology clearly states who is providing the care and how much they are being paid.

It is very important that the rate of pay be off-white and reasonable. In other words, the rate of pay should not be fix higher up the going rate for the services provided in the area you reside. Typically the caregiver is paid weekly or bi-weekly every bit spelled out in the agreement. In some cases a lump sum payment may exist fabricated but not all states let lump sum payments.

Likewise, it's very important not to pay retroactively. This means that payment cannot be made prior to the creation of the agreement. This could have negative implications for Medicaid eligibility down the road which we volition discuss next.

Family caregiver agreements must be signed by both the caregiver and care recipient. Some states require the agreements to exist signed by a notary so check your states requirements.

The Importance for Medicaid Eligibility

Information technology is important to note here that not having a family unit caregiver agreement in place could jeopardize the care recipeint's eligibility for Medicaid downwardly the road should they need to obtain assistance.

Family unit caregiver agreements are especially important if the person receiving care might crave long-term care from Medicaid in the future, such as nursing home care. Medicaid has an asset limit in order to qualify, which for about states, is $two,000. You can check here for land specific asset limits. In an attempt to authorize, some seniors may attempt to "gift" some of their assets over the established limit in order to become asset eligible.

To prevent this from happening, Medicaid has a 5-year await back rule (two.5 years in California). During the "wait back" period, all past asset transfers are scrutinized to ensure they were not "gifted", and if it is found an applicant has violated this rule, a punishment of Medicaid ineligibility will outcome.

If you do not have a formal caregiver understanding in identify, Medicaid virtually probable will consider whatever payments made to the caregiver as gifts and therefore in violation of the look dorsum dominion. A personal care understanding provides proof that any coin paid out to the caregiver by the care recipient is indeed for receipt of care services. Exact agreements typically do not provide the proof needed by Medicaid.

In addition, the caregiver should continue a daily log showing the blazon of care provided, the hours worked and the payments received. This provides further proof to Medicaid that care was in fact provided should they need information technology.

Even if care recipients do not foresee themselves needing long-term care Medicaid in the future, personal services contracts provide a safeguard in the event that they exercise. For seniors who are over Medicaid's asset limit, only crave care assistance, these contracts serve every bit a Medicaid planning tool, as they essentially allow seniors to "spend down" their extra avails without violating Medicaid's look back rule.

What Information Should Family Caregiver Agreements Include

Personal care agreements should include the post-obit data:

Services to exist Provided

All tasks and duties that the caregiver is expected to perform need to be included in the personal care agreement. This could include light housekeeping, laundry, going grocery shopping, providing transportation, and assisting with activities of daily living. Information technology is also a practiced idea to bespeak where the care is being performed, such as in the care recipient's dwelling house.

Frequency of Services

How frequently (how many days a calendar week) and for how long (how many hours at a fourth dimension) services are to be provided should exist included in the contract. That said, information technology is okay to exit the terms somewhat flexible since care needs tend to change over time. For example, the contract might land, "a minimum of 20 hours per calendar week" or "a maximum of 40 hours per week".

Payrate and Frequency of Payment

The contract must include the caregiver's charge per unit of pay, which as mentioned previously, must exist no more than the going rate in the area in which one resides. Also included must be how often the caregiver is paid.

Start Date / Length of Agreement

The appointment that care will begin needs to be included in the understanding. Retrieve, it must exist a future appointment; the contract cannot exist backdated. Besides, it is important to include how long the agreement will remain in effect. This may be curt term, such as just a few years, or for the life of the individual.

Modification / Termination Clause

A clause assuasive modification of the personal care agreement when both parties agree to the changes should be included. If the understanding is long term, information technology is highly recommended that the agreement be reviewed, and modified as needed, on an almanac ground. A clause that allows for termination of the agreement is also recommended.

Signatures

The personal care agreement must be signed by both the care recipient and the caregiver. In some states, notarization may exist required for validity purposes.

Avert These Common Mistakes

Below are common mistakes that are made (and should be avoided). Remember, even a small mistake could cause the care recipient to be denied Medicaid in the future should they demand information technology.

Paying a caregiver retroactively. The intendance agreement should be created with a commencement appointment for future intendance. Care agreements are not intended to pay a caregiver for care that has already been provided.
The caregiver does not go on a daily log. A daily log of services and payments received may be needed for Medicaid equally proof that payments were fabricated to the caregiver for services rather than given equally a gift.
Pay rate is not reasonable. If the caregiver's pay is higher than the going rate for the type of care that is being provided, it can be considered a gift for Medicaid purposes.
Being unaware of the rules in your state. For example, some states crave that the signed agreement be notarized, and some states do non let for a lump sum payment for services.

Gratis Caregiver Agreement Templates

Below are two different versions of a caregiver understanding that you can download and use. One is slightly longer and more than detailed every bit to the blazon of care being provided. The other i is shorter merely nonetheless provides the information needed.

Delight notation that these documents and the information in them is presented to be used solely as an case and general guide and is not intended every bit legal communication. While consulting a lawyer is not required, you may choose to do then for further legal guidance.