Protecting Your Golden Years
With more than 30 years of experience
Another Means Of Asset Protection
When Should I Make A Personal Care Plan?
You should have your elder law attorney prepare it as soon ahead of time as possible. Without a proper contract in place ahead of time, Medicaid will consider the money paid to you to be a gift or a transfer of assets without value. This means that every dollar paid for services without a properly prepared contract will be added together to determine the Medicaid penalty. Ignorance can be costly.
What Should Be In A Personal Care Contract?
As to what should be in the contract, look at a winning case in Missouri, the Reed case. One month after Mrs. Reed entered a nursing home, she and her daughter Sandra entered into a lifetime personal care contract wherein Sandra agreed to perform a number of services for her mother, including preparing meals, cleaning, laundry, assistance with grooming, bathing, personal shopping, monitoring her mother’s physical and mental conditional and nutritional needs in cooperation with health care providers, arranging for transportation, visiting weekly and encouraging social interaction, and interacting with and assisting in interacting with health care professionals for her mother during her lifetime.
Even though Mrs. Reed was receiving the care of a nursing home, the court ruled that the $11,000 payment was fair compensation and that the services provided by Sandra under the contract were not duplicative in that Sandra provided a communication link between staff and Reed (who suffered from Parkinson’s, had suffered a stroke and had difficulty communicating with staff and facility personnel). The court noted that the services “enhanced Reed’s life in ways that the facility does not, and are above and beyond the care provided by the facility.”
Ask A Lawyer About Personal Care Contracts
If you are caring for your loved one either at home or in a nursing home, a personal care contract is something you might want to discuss with your elder law attorney, who can carefully craft it to preserve assets. To learn more, contact our Cumming office at 678-608-1746, toll-free at 888-586-2621 or send us an email.