Consider creating an “escape clause” in case one of the parties wishes to terminate the contract. Use a term such as “this agreement remains in effect until it is terminated in writing by both parties.” Consider a provision that “jumps” into action if the caregiver becomes ill or wants time off. Is there a security guard who can intervene temporarily? As mentioned above, each state has a heritage limit that must be met to be eligible for Medicaid. A properly developed personal care agreement can help “spend” your wealth to qualify for Medicaid. Remember that it is important that the personal care agreement is properly developed so as not to violate the Medicaid Look Back Period. It is highly recommended to seek assistance in the development of a personal life assistance agreement if he or she expects to apply for Medicaid in the future. It is also recommended that a daily protocol be put in place that documents care in exchange for remuneration. You can be partnered with a medical planning expert to discuss how this strategy would be appropriate for their families. While it is not prohibited to enter into a spousal personal care contract, this technique will not work if the purpose of the contract is to “spend” excess assets to reach the Medicaid limit. This is due to the fact that all assets of a couple are considered to be held collectively. Here are other options for married couples to reduce the assets named for Medicaid authorization purposes. Health care contracts, also known as independent care agreements, are written agreements that set care rules for the elderly for a fee. There are two types of health care contracts: personal care contracts and institutional care agreements.
If there are definitions for both types of agreements below, this article focuses on personal care agreements and not on institutional agreements. Those who care for a loved one can make a considerable sacrifice: job giving up and work allowance. A formal agreement between family members may provide an opportunity to compensate a caregiver if he or she is no longer able to behave like another job. While most family members want to help and feel a sense of duty to care for a loved one, it is a job with heavy obligations of time and responsibilities. One way to protect the caregiver and the patient is to place the care relationship in writing. Personal care contracts formally establish a commercial relationship between the caregiver (employer) and the caregiver (salary). On the basis of the terms of the contract, which must be written, the caregiver is compensated for the provision of care. As mentioned above, personal agreements offer protection against violations of Medicaid`s return rule. In addition, they help prevent family conflicts, as the contract clearly states who cares for those who need it and how much the caregiver is paid. All tasks and duties expected of the caregiver must be included in the personal care contract.