By Aric D. Burch
February 24, 2021
Hiring relatives to provide care for you can have unintended consequences when it comes to dealing with Medicaid. Elder Law Attorney Aric Burch explores three steps you can follow to safely hire relatives without hurting your Medicaid eligibility in his latest Medicaid Minute post.
Hiring relatives to provide care for you can have unintended consequences when it comes to dealing with Medicaid. But what if I told you it can be as easy as 1-2-3 to safely hire relatives? Today, we’ll explore three steps you can follow to safely hire relatives without hurting your Medicaid eligibility.
Hi, my name is Aric Burch. And this is Ruder Ware’s Medicaid Minute.
Family is often the primary care giver when someone begins to need extra help. Showing appreciation for that care is often desired, but as we’ve discussed in the past, giving the relative a gift could be a problem if Medicaid is needed in the future.
If we are not careful, Medicaid will even view payments to a relative for that care – whether its cash or other property – as a gift and not a valid payment.
So to help avoid problems with Medicaid eligibility, here are three steps to follow: One, make sure services directly benefit you. Two, make sure the compensation is reasonable for your local market. And three, make sure you have a written agreement that spells out the services to be provided and the compensation.
This agreement must be signed and notarized before you begin to pay your relative.
If you or a loved one have additional questions about hiring relatives and Medicaid eligibility, please contact one of our elder law attorneys. We’re here to help.
The content in the following blog posts is based upon the state of the law at the time of its original publication. As legal developments change quickly, the content in these blog posts may not remain accurate as laws change over time. None of the information contained in these publications is intended as legal advice or opinion relative to specific matters, facts, situations, or issues. You should not act upon the information in these blog posts without discussing your specific situation with legal counsel.
© 2022 Ruder Ware, L.L.S.C. Accurate reproduction with acknowledgment granted. All rights reserved.