Redmond Office Law Blog

As the cost of assisted living facilities and nursing homes continues to rise, families are looking for alternative ways to care for a elderly parent or grandparent.  In many situations the family member that ends up as the primary care giver or assistant is the family member that is physically closest to the parent and is able to reduce their outside work load.  Care giving can include anything from running the family member around to doctor appointments to actually living with the family member in their home.  What many families need to address is how this care giver is going to be compensated and reimbursed.  It may be necessary for the family to have a “care giver agreement” in place to not only address the amount of compensation and reimbursement, but a care giver agreement is also necessary to protect the funds that are paid to the care giver in the event the family member enters the nursing home and applies for Medicaid.

If the family member needing care merely pays the care giver without an agreement and that family member later enters the nursing home and applies for Medicaid, the nursing home may view these payments as gifts if there is no agreement in place.  In some instances, the family member may not have sufficient funds to pay the care giver while they are alive and an agreement may be needed to provide that the care giver will be compensated upon the death of the family member from proceeds from the sale of the house or a life insurance policy.