What is a Personal Care Contract?
Personal Care Contract establish a business relationship between the care recipient (employer) and caregiver (employee). A Personal Care Contract is used in Advanced Long-Term Care Planning as both a way of allowing a Senior to stay in their home, but also protecting the Senior if there is a need for Medicaid long-term care in the future.
Based on the terms and conditions of the agreement, the caregiver is paid a reasonable rate for providing care services. Personal care contracts offer protection against Medicaid's look-back rule and can be essential to avoiding a challenge that the compensation was a gift.
What are the advantages of using a Personal Care Contract?
As part of the Senior's life-planning, a Personal Care Contract is a smart way to help the care recipient to stay in their home, fairly and equitably compensate a family member or friend that they trust to assist them in the care that they need. A Personal Care Contract can add dignity to a Senior's life plan so that they know that they can stay in their home, and receive the care that they need as they age.
Furthermore, they help prevent family conflict, as the contract clearly states who will provide care for the individual in need and how much the Senior is paying for these services.
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