The
Monthly Elder Law Planner
John
A. Scott, P.C.
1000
S. Garfield, Suite 3, Traverse City, Michigan 49686
(231)
933-5322 Fax (231) 933-5327
July 2008
John A. Scott, P.C. – A law firm focused on estate planning, elder law, trust and probate administration, charitable foundations, and real estate. John A. Scott and Diane Kuhn Huff
QUIET! NOW GIVE ME A WORD
COUNT
Some magazines pay by the word; Judge Lee Coffee of Shelby County, Tenn.,
imposes sentences by it. After an earlier hearing in which hyperbolically
contemptuous defendant Joshua Beadle threatened to kill Coffee and made an
effort to spit at him, he was brought before the judge in a nylon-and-mesh
hooded spit mask and told he would be sentenced to 10 days in jail for each
word in his outbursts. The judge mercifully stopped counting at 70 words - or
nearly two years behind bars. Beadle for his part apologized to the court
clerk, whose computer he had actually spit upon, and assured her he had
intended to reach the judge.
By: Diane Kuhn Huff
Question:
I'm the primary caregiver for my mom.
I'm working less to take care of my mom. Can my mom pay me for her care?
Caring
for an elderly parent takes time and loving patience. Sometimes the elderly person won't accept care from anyone except
family. The care also takes a toll on the caregiver, financially through the
inability to seek outside employment, emotionally when seeing the parent
decline and, physically from the accumulated worries and physical demands.
One
solution to ease the financial burden is to pay the family member
caregiver. Privately paying for a
nurse, caregiver, housekeeper, cook, transporter, handyman, yardman, and
bookkeeper can be expensive. Since the
family is providing the
service,
and saving the parent money, why can't
the
elderly person pay family? They can.
Future problems and misunderstandings can be avoided with open communication
and documented needs.
Two
issues can arise when paying a family caregiver. First, if the elderly person later needs Medicaid for skilled
care or at home care, payments to the family may cause a Medicaid penalty. Second, family dynamics may change causing
suspicion or resentment by the caregiver child, or child not receiving payment.
The
first issue is easier to address. The Michigan Medicaid rules presume care from
family is provided for love and affection. However, the Medicaid rules also
list items to demonstrate the caregiver agreement is also a business
arrangement. To work, there must be a
written agreement signed before services are provided. The contract must be dated, signed and
notarized. The elderly person cannot be
residing in a facility. The doctor must state, in writing, that the services
are necessary to prevent placement in a facility. Payment for companionship is not allowed. Payment may be similar to charges from
private agencies. The caregiver cannot sign the contract on behalf of the
elderly person.
The
second issue is just as important. The
caregiver may feel like he or she has too much to do with very little help from
other family members. Other family
members may feel the caregiver is excluding them from important information, or
may disagree with decisions made by the caregiver. Financial issues can strain the delicate balance of family
dynamics.
Caregiver
Agreements can prevent a Medicaid penalty and family misunderstandings. A well
thought out Agreement involves the following:
1.
Assess the
elderly person's needs and wants. A
professional assessment is valuable, whether from a gerontologist, social
worker or home health agency.
2.
If Medicaid
benefits may be needed within the next 5 years, obtain a doctor's statement
that the care is necessary to prevent transfer to a facility.
3.
Verify
from private agencies a reasonable price.
4.
Itemize
the care the caregiver will provide.
Include respite for the caregiver.
5.
The
Caregiver Agreement is similar to an employment agreement. Report the income
and pay FICA and FUTA.
6.
Have
a family meeting to reach a consensus. Give deference to the elderly person's
wishes.
7.
Have
the caregiver provide reports to family members to keep them informed. Email is a great communication
tool
8.
Keep
receipts for expenses to be reimbursed.
9.
Do
not have the caregiver sign the Agreement for the elderly person. Have the elderly person sign, if he or she
can. If not, have another family member
sign for the elderly person.
Some people think the Caregiver Agreement is overkill. In my line of work I see many good intentions end with unexpected problems to solve. Often the problems can be avoided with a more business-like plan.
Diane
Kuhn Huff is a Certified Elder Law Attorney with the law firm of John A. Scott,
P.C., a firm focusing on estate planning, probate, trust administration, elder
law and real estate. Ms. Huff is an
active member of the National Academy of Elder Law Attorneys, Probate and
Estate Planning and Elder Law sections of the State Bar of Michigan. The firm is located in Traverse City,
Michigan at (231) 933-5322.
John
A. Scott, P.C. would like to thank you for your continued interest in The
Monthly Elder Law Planner. Should you
no longer wish to receive our monthly newsletter or are receiving it in error,
kindly contact our office by telephone at (231) 933-5322 or email to carriehahn@chartermi.net.