UA-50960147-1, law, legal, medicaid, elder, investments, insurance, financial, planning, retirement, nursing, home, long-term care, LTC, Roanoke, Salem, Botetourt, Vinton, Daleville, Troutville, Fincastle, New River Valley, Christiansburg, Blacksburg, Radford, Elliston, Shawsville, Glenvar, Bedford, Franklin
We often meet with family members of a sick older relative who want to know how they might preserve assets in the event that their loved one needs nursing home care. It is not unusual for a family to have created a network of family caregivers to stay with the loved one, enabling the person to stay in their home. If the family were paying an outside service to provide the same companion and nursing services, the rate would be $18-$20 or more per hour. Then, once the person finally reaches the point of requiring total care in a nursing home, they still have their life savings which their family helped them preserve by serving as free caregivers. They must then use those funds to pay for their care in the nursing home or come up with a creative Medicaid crisis plan to try and preserve some assets.
Under these facts, we advise clients to have the loved one pay them for their services. The Medicaid rules DO NOT permit a person to retroactively pay family members for services provided to them without having a written agreement in place prior to providing care. We help clients craft those written caregiver agreements, document the reasonable needs of the sick family member, and the reasonable rate of pay. We draft caregiver agreements to pass the Medicaid test for payments to family members.