Personal Care Contracts
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A good way to reduce a parent’s countable assets when trying to qualify for Medicaid nursing home benefits is by having the child charge the parent for caregiving services provided. A child or other family member is permitted to contract with the parent to provide personal care to the parent. Such payments will help to deplete the parent’s countable assets without causing the imposition of a penalty. The payments must be considered reasonable and in line with the going rate for similar services provided by outside companies in the same area. The following guidelines should be followed for personal care contracts:
Prepare a written contract prior to the delivery of the personal care services.
Detail what types of services are included.
Both parties to the contract should sign in front of witnesses and a notary
A doctor’s note should be obtained indicating that the parent needs the services being provided in the contract.