Heavy fighting was reported from Chilawatte as 59 Division engaged the LTTE yesterday. 7 soldiers were killed and another 70 injured in the fighting. LTTE is concentrating its forces to the east of the Mulaitivu Lagoon. The strategy will be to travel from the west of the lagoon to the east.
Heavy fighting was also reported south of Iranamadu, at Ampakamam north in the last few days as Task Force 3 under Brigadier Liyanage headed into LTTE areas. 10 LTTE cadres were confirmed killed in the attack while some Charles Anthony, Imran Pandian, Malathi unit cadres have started abandoning their posts and escaping the LTTE along with their civilian captives.
While some LTTE teams in Mulaitivu still engage in the failed bund/trench defense system to stop an army, which became outdated in World War I, LTTE units east of Kilinochchi, who learnt their lesson the hard war from the 57 and the 58, have started deploying small teams for hit and run operations, particularly at Vattakachchi.
Troops advancing on Vishvamadu and about 7km away from their target while resistance in the general area north of Paranthan has gradually diminished as troops reach Chundikulam (Sundikulam).
Thursday, January 15, 2009
battlefield progress
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«Oldest ‹Older 401 – 600 of 2737 Newer› Newest»Patriots,
When we are about to see the end of terrorism under the current leadership, we have the fake defence analysts aka defence fiction writers trying to vilify the greatest heroes of Mother Lanka of our era who can be ranked among great generals in Prince Gamini and Prince Kiththi eras. These fake analysts who used to sing in praise of LTTE terrorists are trying to portray them as heroes. These fake defence analysts, even as of last week, was singing in praise of LTTE. For these analysts, the fall of Elephant Pass is not an event worthy of reporting. Their LTTE biased reporting had done great harm to our motherland by demoralizing the soldiers and citizens alike. I firmly believe that the rightful place of these fake defence analysts is the unmarked graves reserved for faceless traitors.
Despite all these treachery, these defence analysts are now trying to dampen our nations security by embarking on disinformation campaign against strengthening of our armed forces. Once such analyst called MIA (you all know who this man is) trying to change the public opinion against strengthening our armed forces. While he is conveniently pointing finger towards Pakistan as a bad example to instill fear and doubt in the patriotic minds, he conveniently forgets other prosperous nations like Switzerland, Singapore, South Korea, Taiwan who have very stable people's governments. He also tries to divert our attention from the fact that LTTE threat will not vanish in to thin air and we will have to keep the Eelamists and LTTE terrorist controlled for a few more decades before the problem is gone. This kind of backward thinking has already ravaged our nation for a few centuries already. It is my honest belief that we should look forward to build a prosperous and strong nation who can stand up on own feet. Anyway, I strongly question the (ulterior)motives of people like MIA, amidst his past bias towards LTTE terrorists, to embark on anti-Sri Lankan campaigns.
From today's Wall Street Journal Asia * JANUARY 16, 2009
Defeating Terrorists
Sri Lanka is beating the Tigers through military force, not negotiation.
For all those who argue that there's no military solution for terrorism, we have two words: Sri Lanka.
This week, the Sri Lankan army said it had captured the last piece of the northern Jaffna Peninsula, one of the few remaining strongholds of the Liberation Tigers of Tamil Eelam, a terrorist organization that has waged a 26-year civil war that's claimed tens of thousands of lives, including those of a Sri Lankan President and an Indian Prime Minister.
That's a huge turnaround from only three years ago, when the Tigers effectively controlled the bulk of the Northern and Eastern Provinces and were perpetrating suicide bombings in the country's capital, Colombo.
Credit goes to the government of President Mahinda Rajapaksa, who has made eliminating the Tigers a priority and invested resources to make it happen. Military spending has surged to $1.7 billion for fiscal 2009, roughly 5% of GDP and nearly 20% of the government's budget.
The expanded Sri Lankan army is now equipped to employ sophisticated counterinsurgency strategies -- such as a multifront attack and quick raids behind Tiger lines. In 2007, the army won its first significant victory by pacifying the Tamil-Muslim-majority Eastern Province, historically a Tiger stronghold. Local and provincial elections were held there last year. The military offensive will now turn to Mullaittivu, the last district controlled by the Tigers in the Northern Province.
This string of victories is a shock to those who thought this conflict, which has political origins, could have only a political solution. The violence started in 1983, ostensibly over Tamil grievances with a Sinhalese-majority government that made Sinhala the country's official language and doled out economic favors to the Sinhalese, who are Buddhist, including preferences for government jobs and schooling. Devolution of power to the provinces has long been floated as the best political fix.
But the Tigers always had other ideas. To wit: They wanted the Tamil homeland to be an independent state with the Tigers at its head. Like other terrorist outfits, the Tigers never accepted the legitimacy of any other group to speak on behalf of their supposed constituents. They were unwilling to accept any negotiated settlement that wouldn't entrench their own power.
That's why earlier efforts to negotiate away Sri Lanka's terror problem failed. In 1987, then-President Junius Jayewardene offered the Tamils a homeland in the north and east that would have given them wide powers, although not a separate state. In the 1990s, another President, Chandrika Kumaratunga, offered another devolution plan. The Tigers refused both offers and the terrorism continued.
In 2002, Norway orchestrated a peace process that resulted in a cease-fire. This time, the Tigers themselves concocted a proposal for a form of regional autonomy in Tamil areas, and the government agreed in principle. Then the Tigers nixed their own deal, betting they could do better with violence after all. They spent the next four years violating the cease-fire.
Repeated negotiations made a settlement harder to achieve. The Tigers gladly murdered moderate Tamil leaders open to genuine negotiations with Colombo. The European Union dithered on declaring the Tigers a terrorist group for the sake of encouraging the peace process, hindering efforts to cut off funding and allowing the killing to continue.
Meanwhile, occasional efforts to subdue the Tigers by force failed through lack of political will or because of outside interference. In 1987, Mr. Jayewardene gained ground in the north, only to be undermined by Indian Prime Minister Rajiv Gandhi, who airlifted food to the militants to curry favor with his country's own Tamil population. Then the Indians changed tack, and an Indian peacekeeping force managed to quell the Tiger insurgency for a time between 1987 and 1989. But that operation was derided as a "quagmire" by some Indian politicians. The force was withdrawn prematurely in 1990. Another Sri Lankan military effort, begun in 1995, collapsed in 2000 due to insufficient troop numbers and political meddling in military decision-making.
Mr. Rajapaksa appears to have learned from all this, which is why he has insisted on military victory before implementing a political solution. It helps that India has stayed out this time around and other countries -- including the EU -- are now tracking and thwarting Tiger financing.
Peace still will not be easy or, despite recent good news, immediate. The Tigers may still be able to carry out some terror attacks, though they no longer pose a wide-scale threat. And Colombo faces questions about its commitment to a permanent political settlement. It has taken some steps, such as a 1987 constitutional amendment again making Tamil an official language, and in 2006 it convened an all-party conference to recommend further pro-devolution constitutional changes. It is dragging its feet on implementing other constitutional measures that would pave the way for devolution. But a political settlement is something to discuss after the Tigers have been subdued.
We recount this history at length to make a simple point: Colombo's military strategy against Tamil terrorists has worked. Negotiations haven't. That's an important reminder as Israel faces its own terrorism problem and as the U.S. works to foster stability and political progress in Iraq. Take note, Barack Obama.
Priyasantha,
What you brought is recycle of garbage. Why do not you just talk about your usual bashing of WP to score some browny points with the patriots. You are one typical son of gun.
Bhahisrav,
How are you Revy?
Your brothers are getting gang banged in Vanni. How can you crack jokes here?
Look at your Elam. It is getting smaller and smaller like your wife's boobs going down and down. How's the cheap whore from Calgary these days? Very cold isn't it?
priyashantha,
It is very likely that MIA is Monkey Iqbal Athas. At minimum, this is the alter ego of Iqbal Athas.
This MIA is trying to create divisions between the political leadership and military leadership.
Don't make him a hero. LW wrote a suicide note then assisted suicide. His wife and two children are suffering in Melb, Australia. He used to send only a small amount of money every month. They didn't even bother going to his funeral.
Aney paw!
Latest news from Leader Publications is that Sonali has found a new fucker, a taller man not a dwarf like LW. She is happy now.
Saradiyel
[Asithri macho, Where are you? mate. Come back and say something. These bologgers are boring. You are the only true patriot here.]
Really???
I am here mate...I am all yours...now pray tell me why are you screaming for me...
is it because your rectum is also naliyanawa (tickling) for a good "fill-to-the-brim" from this OaOA???
Yes, I know I have PONNA (mostly LTTE and RW=TNA=PeaceCorp=NewLeft) fan-club all over the planet who love to be ass-ripped by this humble OaOA...but bloody hell...life is too damn busy to please everyone!!!
LMSSAO!!!
OaO Asithri
Saradiyel
[Asithri macho, Where are you? mate. Come back and say something. These bologgers are boring. You are the only true patriot here.]
Really???
I am here mate...I am all yours...now pray tell me why are you screaming for me...
is it because your rectum is also naliyanawa (tickling) for a good "fill-to-the-brim" from this OaOA???
Yes, I know I have PONNA (mostly LTTE and RW=TNA=PeaceCorp=NewLeft) fan-club all over the planet who love to be ass-ripped by this humble OaOA...but bloody hell...life is too damn busy to please everyone!!!
LMSSAO!!!
OaO Asithri
Lasantha and Sonali drove own BMWs in Australia in 2003 now driving leased Nissans thanks to Maharajas.
Kala kala de pala pala de Sonali vesiyo.
Now I know UNP's next game.
They will accuse SF saying SF is preparing for a power grab. Thank you MIA for giving such a brilliant idea for those loosers.
I'll cut my nose if UNP do not say so.
Priyashantha
/ Bhahisrav,
How are you Revy?/
Ha Ha But I don't think bahisrav can understand that much sinhala.. ha ha
Revy can be Upul not bahisrav..
Also,.. I thought Sonali was LW's wife??..
Dear Sammy the mental patient,
"As a foot note to your response, I would say that we are here today because of the fact that we had brave ancestors who had the courage to stand up against invaders and terrorists. If it was left to wimps like ReallyCold, we are not having this discussion today."
I'm sure glad our ancestors were not "patriotic wimps" like you Sammy, talking big about others' achievements. It also helped that they did not have your mental disorders.
Latest Tamiz Eezaam Maphere
# Saman Kumara Ramawikrama from Darmapurahere
Any one knows what is the latest capital of de facto tamiz eezaam??
MIA: “Something fishy is going on. We don't want to end up as Pakistan or Fiji. Dictators have always failed their countries.”
Something fishy is going up in ur ars@! Ha ha ha
Hey stupid, ur crap is as good as Navindran seeya’s crap!
Guys, …pls pls don’t cut and paste or write “Rumors and Innuendo” published in other blogs like Meeharak Mahen or FS guy in LNP. Have faith on DW and calm down pls!
How good is this crap from MIA? He is not Iqbal or anyone with a bit of credibility. These people, MIA, SF from LNP, Mahen ect are only here for a cheap thrill and to spread “Rumors and Innuendo”!
Just take it easy and wait for up-dates from credible sources like DW or DN and ignore d#ckheads and morons like MIA, Mahen ect ect
MIA,
"We don't want to end up as Pakistan or Fiji. Dictators have always failed their countries."
Let Fonseka beat the LTTE first. If he decides to launch a coup afterwards, we'll see how long he lasts.
TropicalStorm said...
[The Tamilnadu political jokers have always threatend 'fasts unto death' and then give up when impassioned pleas are made by another political joker.]
Brother, I was thinking of the same thing today, when I read about three LTTE supporters in Tamil Nadu who, after dousing kerosine on their own bodies, were "just stopped in time" by Police from setting fire to themselves, in protest against "civilian Tamil casualties in Sri Lanka"!
They reminded me of the professional wailing women who used to be hired long ago for funerals in Sri Lanka. They would wail shouting "Oya kattha genna mage' bella kapa ganna, mata baa jiwathwenna meya nathuwa"! Often a struggle would ensue at the funeral to "restrain" them and "save" them...it was all pure comedy. If a "kattha" had ever been provided for them to ease their suffering immediately, they would have sobered up in a hurry! So, who hired these potential "human torches" in Tamil Nadu?
I believe in the inalienable right of all individuals to take their own lives by any means they prefer, as long as they do it quietly in the privacy of their own homes. However, by law, they should be prevented from disturbing the peace and tranquility of other peoples precious lives.
News News News
[Sri Lanka opposition leader to fight against the violence
Jan 15 (CP) Colombo: Sri Lanka opposition leader and the leader of the United National Party (UNP) Ranil Wickremasinghe today urged the party supporters to come forward to strengthen the party to help the protect media freedom and human rights. ]
Wow!
I wonder if the Ponnaya motherfucker plans on unleashing the “green tigers” like how he did in the ‘80s to “fight against violence” and “protect media freedom and human rights”…????
LMSSAO!!! Truly LMSSAO!!!
OaO Asithri
Sujeewa,
"We're living in a 1000 yr old battle ground. Over population of south India is causing them spread down and capture our land and there is nowhere to go."
When is the last time S. India tried to colonize SL??
"I personally want SLDF and SLMI to continue growing and end up as a very strong defense and surveillance unit such that they are capable in thwarting any such attempts at first instance. If we did that in 1983 [again FUCK that JRJ] how little would have died?"
JR's mistake was not failing to build the security forces. There is little he could have done in the 5 years between 1977 and 83 to transform the then ceremonial SLA into what it is today. JR's mistake was starting a war that we weren't ready to fight.
If we want to continue building the security forces, we'll have to develop an economy to support them.
"What this means is that the whole of 20mil SL population will be equally polluted with 5k hardcore terrorists and entire 65k sq km is vulnerable. DW this is a threat like never before."
Not really. If the LTTE believed that it would be stronger by melting into the population and relying on guerrilla warfare, it would've relied on that not the conventional warfare that we've seen.
With conventional warfare the LTTE could maintain the trappings of a state as well as inflict heavy casualties on the security forces. Without conventional warfare the LTTE is washed up and no one will believe it has the ability to establish a separate state.
If this war had dragged on longer than necessary, the Tigers would've gotten the impression that they could stop the SLA, and they would've used the opportunity to turn the tide. Conversely, by continuously attacking and refusing to yield the initiative, the SLA has broken the will of the LTTE cadre to resist.
"Imagine the risk of SF retiring, GR relieved, MR ending terms. Everything will not be there for ever."
The same has obviously proven true if not more true for the Tigers. No more Balraj, Thamilselvan, Charles etc.
Hi Folks,
Is the GOSL is monitoring the possible evacuation of VP with the use of a Submarine? It it possible to monitor?
I think this is the best way he can run and hardest way GOSL can monitor and attack.
Appreciate if anyone of you know about this can shere your knowledge.
"The Swiss government had a decentralised structure, such that even the Federal President was a relatively powerless official, without the authority to order the country to surrender."
It seems that Ananda-USA in his enthusiasm has accidentally endorsed a decentralized federal system for Sri Lanka, with a powerless President! And yet he accuses others of being hidden supporters of separatism??
"Is the GOSL is monitoring the possible evacuation of VP with the use of a Submarine?"
No need. Thalaivar's Fat Ass will sink the sub and everything will solve itself.
Tamil Eelaam Airport (TEA)
Monkeypala Master,
Once I told you about your rightful place, i.e. the garbage bins of Sri Lankan history. Please be prepared to reach the destination any time.
[Sri Lanka opposition leader to fight against the violence
Jan 15 (CP) Colombo: Sri Lanka opposition leader and the leader of the United National Party (UNP) Ranil Wickremasinghe today urged the party supporters to come forward to strengthen the party to help the protect media freedom and human rights. ]
88 biyagama kollo set eka apahu genenda wagei..
Single
[All of recent Bhairav's post are always linked to Sex. So it seems you are deeply depressed. Get a good Tamil girl...(it is hard tofind becasue half was fucked by SLA and rest is fucked by LTTE)]
Man o Man…!!!
This easily wins the coveted OaOA Award for Ridicule tonight!!!
Keep ‘em coming mate….
OaO Asithri
Rover,
You gave great responses to Ananda-USA. Just be careful about pushing him too much, he might accuse you of being an LTTE agent.
Having a 500,000-man SLA won't stop the Indian Air Force from entering our airspace and conducting another parippu drop (or worse). I think Ananda-USA is missing that simple point.
GR, defence secretary interview FULL
http://defence.lk/new.asp?fname=20090115_07
Nisal said...
[I don't think RW has a big plan to divide the country or destroy Sinhala nation as some of you believe. I think, his plan is just to get power. He is willing to do anything and everything to achieve his target and he prefers short cuts and "nool sooththara" to get power rather than the formal approach.]
He may think that he can control events that allows him to become captain of the ship, but "man proposes and God disposes" and "the best laid plans of mice and men often go astray." Instead the whole ship of Sri Lanka goes down, taking all of our people with it.
Such Machiavellian people are "desha drohis" who should be rejected and marginalized into impotence by the people.
It is not without reason that Gothabhaya Rajapakse, in his recent video interview, urged people to be "buddhimath" people who do not swallow at face value everything they are told, but must analyze the underlying motivations and evidence before making the decision to believe.
Did not the Buddha teach us the same thing: that we should use our own minds, relating the cause to the effect, before we accept his teachings?
Sam
[Monkeypala Master, Once I told you about your rightful place, i.e. the garbage bins of Sri Lankan history. Please be prepared to reach the destination any time]
Man, is this night (in NYC that is) never going to end with this kind of cool posts from patriots???
LMSSAO!!!
OaO Asithri
Asithri,
As Ninja often says, Monkeys are fun too :)
Sam
Mossad trained agents...
please step forward and be counted!
:)) :)) :))
OaO Asithri
Sam
[Monkeys are fun too]
Yes, what would Motherlanka's history have been without Hanuman the monkey!!!
LMSSAO!!!
OaO Asithri
Sri Lanka a model for Third World –UNICEF
Lanka singled out as a success story in latest UNICEF Report
Remarkable drop in maternal, under-five mortality /
Ha Ha I thought we are "failed" state.. Ha Ha
http://www.dailynews.lk/2009/01/16/news01.asp
SL will be THE model for defeating terrorism too..
Finallly... a reasonably fair article to SL in the western press.
http://online.wsj.com/article/SB123203734190685985.html
Troops Capture Dharmapuram and Civilian Exodus
LTTE training camp seized
Sirasa attack suspects further remanded
LTTE completely cut off from Jaffna Peninsula
LTTEs fifth runway captured
AnandaUSA
re. RW ponnaya:
[Such Machiavellian people are "desha drohis" who should be rejected and marginalized into impotence by the people]
Ditto!
I take it a step further in the traditional OaOA philosophy and say "these are desha-drohis who should be tried for treason and when found guilty, must be "reduced-to-ashes"...!!!
OaO Asithri
/Gota rules out amnesty to LTTE leadership
by Shamindra Ferdinando
Wants Prabha tried here before extradition to India
Ruling out a general amnesty to the LTTE, now rapidly losing ground on the eastern flank, Defence Secretary Gotabhaya Rajapaksa yesterday emphasised that LTTE leader and his chief lieutenants would be tried for crimes they had committed, both here and abroad.
Even if they surrendered to the army, the government would go ahead with legal proceedings, he said.
Rajapaksa told The Island that although ordinary LTTE cadres would be rehabilitated to facilitate their return to civilian life, the top LTTE leadership shouldn’t expect clemency. Prabhakaran and the likes of Sea Tiger leader Soosai, Intelligence chief Pottu Amman, Sornam, Theepan, Nadesan and Ramesh would be punished./
http://www.island.lk/2009/01/16/news14.html
Man, How come Gota could say exactly what was in my mind?.. I think in the minds of all those who love SL.. I know this is hard thing to do.. but he is on target..
Zeus,
Thanks a lot for the link.
>>>From today's Wall Street Journal Asia
"For all those who argue that there's no military solution for terrorism, we have two words: Sri Lanka"
How proud we should be.....
With Thanks to Ninja...
[Sri Lanka a model for Third World –UNICEF
Lanka singled out as a success story in latest UNICEF Report
Remarkable drop in maternal, under-five mortality
Sri Lanka has won plaudits from UNICEF as a “model for developing countries” due to its excellent health indices related to mothers and infants.
The UNICEF’s State of the World’s Children’s Report 2009, released yesterday, said Sri Lanka’s achievements in scaling up health services for mothers and infants and its success in slashing maternal and neonatal mortality rates has made the lower middle income country a model for other developing nations. The UNICEF cited Sri Lanka as a strong example of how the health and survival of mothers and their newborns are linked and how many of the interventions that save new mothers’ lives also benefit their infants.
The country’s efforts to empower and educate women together with providing essential heath services have been vital in saving the lives and mothers and infants.
According to the Report, “Sri Lanka has managed to halve its maternal mortality rate every six to 11 years by adopting sound strategies, allocating sufficient resources, providing free health care, making education for all a priority and having the political commitment to improve the health of mothers and children”.
“While the country still faces challenges, the overall picture of maternal and neonatal health is one of remarkable progress over past decades,” said UNICEF’s representative in Sri Lanka Phillppe Duamelle. Between 1960 and 2005, the maternal mortality ratio fell from 340 to 44 per 100,000 live births. Since 1990 the under-five mortality rate has dropped from 32 per 1,000 live births to 13 per 1,000 in 2000. UNICEF has noted that Sri Lanka’s positive results are due in part to a considerable scaling up o essential health services for mothers and infants.
More than 95 per cent of births in Sri Lanka take place in hospitals with a doctor, skilled nurse or midwife in attendance.
Immunisation coverage is almost universal at 99 per cent and rates of antenatal care are also high at 95 per cent.
“Measures to empower women through education, employment and social engagement have also had a positive impact on the health of mothers and children,” Duamelle said.
The data on Sri Lanka contrasts sharply with those on most other developing nations. The report reveals that women in the least developed countries are 300 times more likely to die in childbirth or pregnancy-related complications than women in developed countries. A child born in a developing country is 14 times more likely to die during the first month of life than a child born in a developed country.
More than half a million women worldwide die as a result of pregnancy or childbirth complications, including about 70,000 girls and young women aged 15 to 19. Since 1990, complications related to pregnancy and childbirth have killed an estimated 10 million women.
The Report recommends that essential services be provided through health systems that integrate home, community, outreach and facility-based care.
Health services are most effective in an environment supportive of women’s empowerment, protection and education, the Report added.]
/UPFA fields 5 war heroes for PC polls
On the instructions of President Mahinda Rajapaksa the United People’s Freedom Alliance (UPFA) had included five war heroes in its nominations lists for the forthcoming Central and North Western Provincial Council elections./
http://www.island.lk/2009/01/16/news5.html
Now this is bad. May be MR did this with good intention but what's the point if the end result is going to be bad?
UPFA put one war hero (against JP) and he lost. Point is if these war heroes loss its bad. If they win then they enter into some disgusting field. In either case they go down. If people want to do politics they don't join army.
Have you guys watched sirasa news after the gota's interview? were there any reactions?
now their website, ethalaya.com is trying to act as a good 'boy' after the treatment.
OK my eastern beauty just called from the airport...got to go pick her up...
Catch you patriots later...
Castrate LTTE/RW/TNA/NewLeft/PeaceCorp/PeaceCouncil motherfuckers till then...with glee okay?
:)) :)) :))
OaO Asithri
MIA
There has never been a military coup in SL and nver will be. To start with, the people will never put up with it, the economy cannot sustain it, and the ability of internal and external forces to topple such a regime is quite easy.
I don't know whre your logic comes from, but as you claim, if you are Athas, then I'm not surprised at the continued attempt to create a negative image in the minds of our people about our forces and government.
Also, you must have sunk to a new low, that you've got to crawl in the blog sphere, attempting to spread gossip and baseless rumors.
Ananda-USA,
The UNICEF report is wrong.
According to our great economist, Navindran, Sri Lankan economy is almost collapsed. So, how SL can be a “model for developing countries”.
If the economy is collapsing how SL can achieve those brilliant living conditions.
Therefore UNICEF report is fundamentally wrong.
Saminda Ferdinando got my complete attention with the article 'how EP was won' until I reached the line stating -
the elite STF, played their individual roles to the best of their ability thereby causing the LTTE’s downfall..
After that, I totally lost interest. Now he has no credibility left. He should stop writing on defense forthwith.
"Something fishy is going on. We don't want to end up as Pakistan or Fiji. Dictators have always failed their countries."
anybody want ranil/LTTE back in power?
not me! ha ha ha!
Patriots,
"Wijayapala" is up to his old tricks again trying to put words into the mouths of people who did not utter them and misrepresenting facts.
He cites the reference provided by Rover on the Swiss system as indicative of my supporting a Federal System for Sri Lanka. I said no such thing; I only pointed to the efficacy of their "Peoples Defence Establishment" defending that small country against much larger foes. In no way, shape or form did I endorse every aspect of Swiss system of governance.
Moreover, he attempts to pit Ananda-USA against Rover, whereas Rover has accepted many of the ideas I had proposed, and differed only on some minor issues. We agreed to disagree on those minor issues. But, Wijeyapala wants to aggravate all differences and make it into a major ego-driven war between us. He is doomed to fail in this...because I recognize the attempt for what it is, and will not be a party to it.
This is an example of the subtle underhand ways in which some of these people hope to divide-and-conquer the patriots. As Gothabhaya Rajapakse recently requested of the Sri Lankan people, do not believe information presented without questioning the motives and the evidence. The evidence must be verified as to origin and context as well.
[tamil eelam a model for Third world countries –UNICEF.
LTTE singled out as a success story in latest UNICEF Report.
Remarkable drop in maternal, under-five child soldier life span.
tamil eelam/ vesapillai has won plaudits from UNICEF as a “model for developing terrorism” due to its excellent cyanide suicide indices related to thamil mothers and unborn foetuses.
ha ha ha!
@wijayapala
I did not want to use the 'N' word when Ananda was building the 1000 year army.
N being the Nuclear.
Buddha himself says nothing is permanent. We all are clinging to something in our life time. Extending that for 12 lifetimes is like an obsession.
" You gave great responses to Ananda-USA. Just be careful about pushing him too much, he might accuse you of being an LTTE agent.
Having a 500,000-man SLA won't stop the Indian Air Force from entering our airspace and conducting another parippu drop (or worse). I think Ananda-USA is missing that simple point."
Defence.lk map is wrong
personally I think the govt. is too lenient on MTV. time to stop these terra MF's taking us for fools.
gota must back his tough words "koti handa" with action. no point just going around accusing.
media badges or not kotiyas will always be kotiyas & should be treated as such.
dirty tactics have to be fought with even dirtier tactics. our very survival depends on it.
# Mongal says there is a plan to kill him..
100% mongal..
http://www.lankaenews.com/Sinhala/news.php?id=7691
# LW was my friend-MR.. Interesting!!
http://www.lankaenews.com/Sinhala/news.php?id=7695
Panhinda
That could be a typo STF vs SF
Big 3 roasted?
Any news?
http://www.divaina.com/2009/01/16/news01.html
velluprabhakaran said...
[personally I think the govt. is too lenient on MTV. time to stop these terra MF's taking us for fools.
gota must back his tough words "koti handa" with action. no point just going around accusing.]
Absolutely. They must be brought to book and penalties imposed for insurance fraud, fraudulent political accusations not supported by evidence, creating civil discord, and supporting terrorist/separatist movements through dissemination of their propaganda.
MIA
I am a two brain cell foolish Sinhalese supremest eating history and drinking plain tea.
You are an LTTE agent.
People, be careful. He sounds too smart and right. Therefore he can't be one of us.
Attck!
Killing Vezha at this point would be a mistake. He should be the last man standing.
There are few people in Indian defense establishment who still believe some kind of Tamil defense force is needed in the island to 'protect Tamils'. IKPF left the island after creating the TNA (Tamil National Army) precisely for this purpose.
LTTE sans Vezha and Pottu may just fit the bill for them. They may prefer to keep the remaining LTTE under new leadership. This is why it would be a mistake to take them out now. Another hostile Indian intervention become more probable only when Vehzha and Potu is out of the way. They may chose not to intervene until then for 2 reasons. Firstly, it would be seen as attempting to save the murderer of their PM. Secondly, it would be a mistake to weaken Sri Lankan military resolve before the downfall of current leadership is confirmed.
This is why it would probably be a mistake to take out Vezha before LTTE strength is reduced to negligible level.
Ninja,
I am quite positive. He said STF.
Ananda-USA,
"Moreover, he attempts to pit Ananda-USA against Rover, whereas Rover has accepted many of the ideas I had proposed, and differed only on some minor issues. We agreed to disagree on those minor issues. But, Wijeyapala wants to aggravate all differences and make it into a major ego-driven war between us. He is doomed to fail in this...because I recognize the attempt for what it is, and will not be a party to it."
Yes, you got it right. Monkeypala Master tries this at every level. He always tries to pit me against other patriots trying to bring up my mixed ethnic heritage which ends up nowhere.
Wesaballa aka Vijeyapala aka Taraki,
So you know that I know you, ha ha.
Guys, this fancy name Sumanadasa Wijayapala is all bull. He is a former TULF activist. One of the PONNAYAS who campaigned in the 1977 election for TULF. He and his family escaped to Tamil Nadu after that to evade capture and then migrated.
Like Tamil Chelvan he can speak Sinhala reasonably well. If there are sakkiliyas, he is definitely one of them.
Wesaballa, you got hurt when some bloggers suggested a big army didn't you? You can run but you can't hide.
When Ananda speak, he sounded familiar and I did not want the remind him using 'H' word.
Someone else thinking alone the same line:
'I can't remember exactly, but Hitler said something like "we will take the procupine on our way back - after defeating France" in Germany's WWII campaign."
Was Hitler a blind patriot too?
[Having a 500,000-man SLA won't stop the Indian Air Force from entering our airspace and conducting another parippu drop (or worse).]
as if sinhala worry about parippu drops. it's the indians who gotta worry about the parippu tamil gratitude.
few years after rajiv dropped parippu & saved the LTTE, rajiv was turned to devilled parippu on shit nadu pavement by the same LTTE. talk about gratitude. ha ha ha!
no wonder the IAF refuses to drop parippu anymore.
When Wijayapala was teaching Pali and Sanskrit, I was in his class.
Whoever says otherwise is assuming the bloggers here are as foolish as Tamilnet readership.
He is the best Sri Lankan writer on the Bloggsphere.
Those who don't have the intellectual capability to challenge here him often resort to violence.
Wall Street Journal article, on 16th Jan, 2009
For all those who argue that there's no military solution for terrorism, we have two words: Sri Lanka...
Colombo's military strategy against Tamil terrorists has worked. Negotiations haven't....
Full text article from Wall Street Journal
Look what this Wesaballa is saying.
Sujeewa said: Imagine the risk of SF retiring, GR relieved, MR ending terms. Everything will not be there for ever.
Wesaballa said: The same has obviously proven true if not more true for the Tigers. No more Balraj, Thamilselvan, Charles etc.
What Wesaballa says is "It happened to us (LTTE) so it is fair if it happens to you guys".
Can the people who SOUND SMART and RIGHT in this blog please help TamilNet?
TamilNet invites opinion
[TamilNet, Friday, 16 January 2009, 03:30 GMT]
Many readers of the Eezham Tamil diaspora and India, anxiously communicate with TamilNet on the future course of the Eezham Tamil struggle. In this regard, TamilNet invites positive written opinion from its readers. The views will be compiled and presented shortly. TamilNet also considers this as a healthy democratic exercise in inspiring the future course of the struggle.
They are looking for writers! I'm sure there are a couple of SMART and RIGHT ppl here who can contribute to TamilNet!
LOL! LOL! LOL!
MIA said...
/This is only a possibility not a certainty so don't get too excited about it. Have it in the back of your minds. We were discussing late into the night and until morning about the possibility of a power grab by the military./
wow.. I am already excited..
/No army commander was so popular as him./
Hey.. now who said MIA is a liar?
/Until 2005 promotions were given based on experience. Now it is based on 'performance'. Who measures performance? It is by our commander himself. This is not how performance is measured in other countries./
Actually who can meassure performance better than him? MIA? journalists!! Ha Ha In USA its CNN measure performance?? ha ha
/He plans to increase the army to 350,000./
Ha needs cabinut approval.
/Why increase the army so much?/
We know why you can't understand it and also why SF can understand it.
/Already he has exceeded his authority. He called a senior Indian politician a joker./
what authority? Even I can say it. Only problem is no media will publish.
/Dictators have always failed their countries./
Ya.. look what happened to peelaam!!
Ananda-USA,
ur right.
in one instance sirasa showed dead bodies of an old bus bombing to claim that proplr were killed. there wasn't a single casualty since the bus conductor acted fast @ got all passengers out.
THESE ARE DELIBERATE INSTANCES OF COMMUNAL PROVOCATION.
govt. HAS STILL NOT TAKEM ANY ACTION AGAINST THIS BLATANT VIOLATION. sirasa got away scot free. WHY?
it's a simple open & shut case. I think sirasa should have been sued for about 100 million & all the money donated to help previous victims of bus bombs & the war heroes.
It'll be really satisfying to see maharaja donating massive funds to army heroes.
[TamilNet invites opinion]
that proves it. vesapillai is dead. ha ha ha!
/TamilNet invites opinion/
Ha Ha too late..
/TamilNet also considers this as a healthy democratic exercise in inspiring the future course of the struggle./
ok my opinion - Appoint Peter to the post of Nadesan, Navindran to the post of Illantherian and all other colonels in LNP/DW/DN etc to military panel and fight the freedom struggle fully online.. ha ha
[[DoDo said...
Can the people who SOUND SMART and RIGHT in this blog please help TamilNet?]]
Good idea.
We should help peezham Tamil to see the light.
<< We must BAN MAHARAJA telecast >>
DW, 500 posts up. Can you put "battlefield progress II".
[[Ninja said...
/TamilNet invites opinion/
Ha Ha too late..
/TamilNet also considers this as a healthy democratic exercise in inspiring the future course of the struggle./
ok my opinion - Appoint Peter to the post of Nadesan, Navindran to the post of Illantherian and all other colonels in LNP/DW/DN etc to military panel and fight the freedom struggle fully online.. ha ha]]
And appoint Mahen to the post of tamilnut editor.
LTTE leaders join battlefield to fight the final war - lankadeepa.lk
Ninja said...
[fight the freedom struggle fully online.. ]
For a "Virtual Eelam", of course.
TAF got a new air strip.
http://www.dailymirror.lk/DM_BLOG/Sections/frmNewsDetailView.aspx?ARTID=37933
HM,
thanks for the link. great article.
Here is an opinion form TN:
Three Indians try to set themselves afire on Lankan issue
Three Periyar Dravida Kazhakam (PDK) activists in India were arrested today, when they attempted to set themselves ablaze near the district collectorate in Coimbotore, to protest against what they called the Indian government's 'failure' to work out a ceasefire in Sri Lanka.
[LTTE leaders join battlefield to fight the final war - lankadeepa.lk]
if they run out of food during the final war they can ambush & roast the fat pig. ha ha ha!
President exposes Lasantha
http://www.lankaenews.com/English/news.php?id=6984
Rear Cold aka Pukaseethala,
Your dog must be smart because he is a whore dog aka Wijayapala!
Illankana ponnaya.
Looks like you had a close relationship with your Pali teacher.
Aney yako, Wesaballa Wijayapala huththige puthata mona Pali da. What he says is not Pali but Andara Demala.
Patriots,
New Battle Map Jan 15, 2009 at Defence.lk
The UN Office in Dharmapura(m) captured yesterday has a photo of Prabhakaran hanged on the wall.
This is the impartial UN.
[Three Indians try to set themselves afire on Lankan issue]
knowing the indians they must have had water cans instead of petrol.
Sam Perera,
"When we are about to see the end of terrorism under the current leadership, we have the fake defence analysts aka defence fiction writers trying to vilify the greatest heroes of Mother Lanka of our era who can be ranked among great generals in Prince Gamini and Prince Kiththi eras. These fake analysts who used to sing in praise of LTTE terrorists are trying to portray them as heroes. These fake defence analysts, even as of last week, was singing in praise of LTTE. For these analysts, the fall of Elephant Pass is not an event worthy of reporting. Their LTTE biased reporting had done great harm to our motherland by demoralizing the soldiers and citizens alike. I firmly believe that the rightful place of these fake defence analysts is the unmarked graves reserved for faceless traitors.
Despite all these treachery, these defence analysts are now trying to dampen our nations security by embarking on disinformation campaign against strengthening of our armed forces. Once such analyst called MIA (you all know who this man is) trying to change the public opinion against strengthening our armed forces. While he is conveniently pointing finger towards Pakistan as a bad example to instill fear and doubt in the patriotic minds, he conveniently forgets other prosperous nations like Switzerland, Singapore, South Korea, Taiwan who have very stable people's governments. He also tries to divert our attention from the fact that LTTE threat will not vanish in to thin air and we will have to keep the Eelamists and LTTE terrorist controlled for a few more decades before the problem is gone. This kind of backward thinking has already ravaged our nation for a few centuries already. It is my honest belief that we should look forward to build a prosperous and strong nation who can stand up on own feet. Anyway, I strongly question the (ulterior)motives of people like MIA, amidst his past bias towards LTTE terrorists, to embark on anti-Sri Lankan campaigns."
No one can say it better mate! We shouldn't promote such un-patriotic and pathetic comments (MIA the PIA).
Now based on this Moda Mahen can come up with some dream story (Breaking News....)
MIA two words for you FCUK U!
"Allowing the war to continue, leaving Tamil civilians in the hands of the preying Sinhala army, which we dread, demonstrates only the cruelty of the few minds that determine the course of the war from outside of the island and how international norms evolved through civilisation have become a joke,"
- P. Kanakalingam, the president of Vanni People's Welfare Organisation (VPWO)
Kanagalingam is in fact from local ICRC branch masquarading as someone from unheard of VPWO.
Kanagalingam here standing in the middle. A photo captured in Dhramapuram.
Those who cant see the Ealam map on latest defence.lk map, press 13 times the "+" button which appears in the zoom box at the left top corner and drag it to left. :p
The UN Office in Dharmapura(m) captured yesterday has a photo of Prabhakaran hanged on the wall.
All the foreign ambassadors and the INGO's did their best to stop the army offensive..
Now we know the reason.
Once Army gets hold of LTTE's records, all the foreign bastards are exposed.
After the war is over, SL must embark on an international drive to name and shame these bastards.
Priyashantha Uguduwo,
Ane thoi mai danna Pali, pakayo.
Wijayapala is the best in the blog and you are the f***ing wesaballa here.
Nikam parippu kanne nethuwa hitapiya, narumaya.
You asithri and pottu with Sam Perera are the only top "four wesaballo" whore dogs here.
Pana Pana Dena huththige puthala. Mun nam apita inna desha premin tika lankawata hena gahana eka pudumayakda.
people
dont respond 2 mia's post.
its unhealthy. u wil only giv more publicity 2 it.
there r government intel people in this blog, monitoring and commenting to control info.
this blog is famous 4 unhealthy info.
b careful what u say, personal info of some bloggers r known 2 them 2, through 3rd party.
dont discuss personal things and dont b in touch wit anybody in this blog!
Gota was electrifying on TV the other day.(Poor Sanjeewa was helpless).He had the guts to speak out what many others more or less know or guess,but wouldn't speak out loud for the fear of being reprimanded by these so-called media-freedom activists.Anyway,as the Sirasa hypocrites themselves say on other occasions:THE TRUTH HURTS.
Then there was this press conference the next day.(Mangala was pathetic as usual.)What amused me most was the JVP MP's comments.God,what an opportunistic & hypocritical bastard!
MIA...SAID..
He plans to increase the army to 350,000. The war is ending and if civil administration is restored in Vanni the army at its current strength can control everywhere. There will be few desertions, fewer deaths, no large operations. Why increase the army so much?
Already he has exceeded his authority. He called a senior Indian politician a joker.
MIA..PONNA RILAWO...
IF YOU ANNALISE THIS JOKER'S STATEMENT AND UNP JOHN AMARATUNGA'S ATATEMENT, YOU GET SO MANY SIMILARITIES. THIS IS TYPICAL "PONNA LAMA SAMAJAYE RANIL AND MONGAL THEORY".
YOU LITTLE PENIS IS TRYING TO CREATE DIVISION AHHH....WILL SEE WHAT HAPPENS...
ROT IN HELL YOU SHIT EATERS...!!!
SF IS THE GREATEST ARMY COMMANDER WE EVER HAD. NO DOUBT ABOUT IT...!!!
WOW!!! What a beauti..
/'Sri Lankan military is prevailing in the war on terror' says Wall Street Journal
"For all those who argue that there's no military solution for terrorism, we have two words: Sri Lanka."- Wall Street Journal (16th Jan, 2009)
"Sri Lanka is beating the Tigers through military force, not negotiation"./
Must read -http://www.defence.lk/new.asp?fname=20090116_01
Dare we to think......?
Several LTTE cadres killed during raids - SLAF
Air Force spokesman today claimed that intelligence reports have confirmed that several LTTE cadres were killed during multiple air raids carried out yesterday.
DM
THIRU WHORE DOG...SAID...
there r government intel people in this blog, monitoring and commenting to control info.
GOVERNMENT INTEL PPL...???
UNTA WENA WEDA NATHTHAN...
HA HA HA...
"He plans to increase the army to 350,000."
I also do not agree with this. We need at least 500,000 army. Then only future generation will live in happy and peaceful.
[While he is conveniently pointing finger towards Pakistan as a bad example to instill fear and doubt in the patriotic minds, he conveniently forgets other prosperous nations like Switzerland, Singapore, South Korea, Taiwan who have very stable people's governments.]
pakistan is way ahead of india & sri lanka in some areas of living standards & healthcare. this was recently revealed. it only proves that a strong military works much better than a weak one. if not for a strong military pakistan would have been torn to pieces by tribal & religious rivalry. today they are a nuke power.
LTTE got it's smartass ideas cos SL had a strictly ceremonial army.we couldn't even fight the 1971 JVP insurgency without indian help. that's why tamils shat out the peelam map, cooked up history & started this sicko war. it has taken us over 30 years & over hundreds of thousand deaths to finish off & it still isn't fully over yet. WE'RE STILL PAYING FOR THE WEAK ARMY WE HAD AFTER INDEPENDENCE.
eelam fukcers who still have hope of a come back sure doesn't like a stronger sinhala army than this. if they cannot beat this army how the hell are they gonna beat an even stronger army starting from scratch? well, that's their problem, not ours. let them sort it out. if they want they can pass another 100 vadukodday resolutions over fat pigs body. this time we'll be ready.
so let's go build an EVEN STRONGER ARMY & RELEGATE ANY FUTURE PROSPECTIVE EELAM PROJECT TO THE DUSTBIN BEFORE EVEN IT'S BORN! JAYA WEWA!
Guys,
what is the meaning of this
http://www.lankadeepa.lk/2009/01/16/front_news/01.htm
that soldire handover by LTTF..?
its good news for Runil and Mangala ?
DW, the Mullativu front seems the ideal place for a ground, air and sea assault. I haven't heard of a simultaneous naval assault from off the coast but I'm hoping there is one.
Thank you Saradiel for answering my question. Irresistible isn't it.
Gents,
Saradiel = Rana
Pottu you are right.
Rana, sorry for exposing you. If you want to tell something to Pottu why can't you come as Rana and do it?
I don't like people having the Multiple Identity Disorder. That's all.
You are associating a dangerous whore-dog Vijayapala. He has brainwashed you.
Saradiyel says,
Wijayapala sakkiliyage kolla mama thamai
Otuwan Kande rajawunu ponnaya mamai
Soora Saradiyel mamai
Soora Saradiyel mamai
Ane Kananke (P. Kanakalingam),
Kana Pala Ganne Nethuwa Hitapan.
P. Kanakalingam can't hear anything.
Because Vesige Putha's lingam is stuck in his ear hole. (Kanelingam)
SARADIYEL SAID..
Wijayapala is the best in the blog
UMBATA PISSUDA NETHTHAN HATIDA...?
WIJEPALAYA UMBATA MONAWA HARI KALADA SARADIYEL KOLUWO...?
HA HA HA....
phantom-x
moda huthige putho thopilage hondatai kiwwe, "mia" kiyapu dewal repeat karanna epa pakayo, mama danna hinda kiyanne.
ninja, mayil rawana
make some sense in to this moron if possible boys as true patriots!
Huh huh ha,
Priyashanthaya ea gamana amu kala.
Please don't insult rana, wijayapala or really cold. They are the only guys make come into this blog. I was reading this for the blog for last 2.5 months and now know all characters very well.
I thought to give a hand to real patriots struggling here with fake pretending garbage patriots like you.
I think more and more bloggers will join us opposing this mariyakade culture.
Just take a minute and think really what these people are saying. Are they say anything worthwhile to read.
This is just grade 06 garbage nothing else. Only sensible and readable things come from rana, wijayapala and saman and really cold. AGG is nothing but at least readable.
So, I sat to you just f**k off.
DW,
we know you have a good sense of the situation and brings up fairly impartial reports as a genuine war correspondent.
we are getting anxious when you are not seen in the field.
why do not you picks up some updates at least every 24-48 hours. to tell you the truth i have visited DW more than hundred times atthe time of your last disapearence. it is too much!
thanks
sanath
<<<< This blog is dedicated to discussing military activities in Sri Lanka.>>>>
57 Div troops gain control over Iranamadu Tank bund- Kilinochchi
The advancing 57 Division troops have gained total control over the Iranamadu Tank bund, following hours of heavy fighting with LTTE early this morning (Jan 16).
Troops advancing eastwardly from the A-9 trunk road met with stiff LTTE resistance as ground troops claimed scoring heavy LTTE casualties. Unable to resist the intense military assaults terrorists have fled leaving dead and weaponry behind security sources said. Meanwhile, troops are also making further advanced towards Ramanathapuram, North of Iranamadu, security sources said.
Troops are now consolidating defences in the area, the sources further said.
Guys,
Enough about unwanted publicity towards Gov vs Army.
Why do not undestand and see how well both worked together and reached to wipe out terror.
Surely this must be driven by LTTE intel. Looks to me LTTE still have some tricks in there hand.
We all know they are innovative. But please do not give this kind of publicity.
MIA,
I'm not calling you an LTTE. Can you please keep these kind of things away from a public forum.
Priyashantha modayo,
At least people like hemantha, vajira, ninja puran and nasal does something good, gives us links to exciting publications. What you are doing? You, asithri , sam perea and pottu like dogs just bark on anything and everything. Then brand bloggers as patriots and traitors. We don’t need that service, we are intelligent enough sort out patriotism and treachery when we see that.
Just try and do something useful to the country or yourself.
duzz,
Looks like 57 will link with TF 3 very soon. This will again speed up the clearing of the Cat shit.
53 is been stationed at Mankulam as a reserve force.
Usee Saradiyel.. usee !!!
THIRU SAID...
"mia" kiyapu dewal repeat karanna epa pakayo, mama danna hinda kiyanne.
WHAT DO YOU MEAN...?
IS IT BECAUSE IT GIVES UNWANTED PUBLICITY AND IT CREATES DIVISION...?
01.Can anyone give me an idea about how many square KMs remaining to be liberated at present??
02.Do we still use heavy weapons to attack???
Anada-USA,
re: TN Jokers-
"Oya kattha genna mage' bella kapa ganna, mata baa jiwathwenna meya nathuwa"
Haaa Haaaa Haaaa Haaaa
You cracked me up! My sides are aching. I love the sinhala language. Nothing like it to express sarcasm in the most heart-rending manner.
Time to view some old Aneslie videos.
BTW,
Agreed about Wijayapala. He's a good guy (I think) but cannot help this sort of "Samarmy" attitude.
Some one made an interesting comment on the "Sumandasa Wijaypala" persona.
I have my own opinion and have engaged him deliberately to test certain hypotheses. (Maybe for private veiwing....).
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
v
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
.
phantom-x
yes man, something like that. but more sensetive, thanks 4 understanding.
..
hahahahaha
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee vCaring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.ersus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
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Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
puran,
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wow 53 as a reserve force. Thats amazing considering that they were known as the best offensive div we had.
any news about ralph Nugera?
Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.Caring for a family member is a responsibility many people bear. It can also be a source of income.
So-called "caregiver agreements" -- formal contracts under which relatives are hired to care for elderly family members -- have been around for a while. But with the economic downturn, more families may be open to entering into such arrangements, some attorneys and caregiver advocates say.
Financial transfers made under a caregiver agreement generally aren't considered gifts, an important consideration if an elderly person later hopes to qualify for Medicaid, the joint federal/state program that covers nursing-home care. The contracts can also provide assurances to other family members about the cost and quality of care being delivered and reward caregivers for the long hours they put in. The agreements need to be carefully crafted, and there are tax consequences.
To an aging parent, the idea of being cared for by a trusted family member may be appealing. And for those who want to stay in their own homes, or need to because they can't sell their property to fund entry into a continuing-care retirement community, hiring a relative can be a money-saving strategy.
For adult children who have more time to devote to mom or dad, such arrangements can provide a modest source of income -- or at least cover expenses they incur in providing care -- at a time when many families are struggling.
"We expect the deteriorating economy to lead to a spike in caregiver agreement work," based on historical trends, says Thomas D. Begley Jr., an elder and disability law attorney with Begley, Begley & Bookbinder PC, a law firm in Moorestown, N.J.
Caregiver agreements, also known as personal-service or personal-care contracts, can reduce tension among family members. In the absence of such formal arrangements, a parent may decide to bequeath a larger slice of an estate to the primary caregiver, typically one child, which can lead to the will being contested by siblings who feel slighted, says Linda Fodrini-Johnson, president-elect of the National Association of Professional Geriatric Care Managers.
In recent years, caregiver agreements have grown in popularity as a Medicaid planning tool because they can reduce the size of an estate, according to Louis Jay Ulman, a senior principal at Offit Kurman, a law firm with offices in the Baltimore-Washington corridor. That's because a rule change extended the look-back period for making gifts to family members to five years from three.
If properly set up, transfers made under a caregiver agreement aren't considered gifts but rather compensation because they are payments made in return for a service, lawyers say. In order to qualify for Medicaid, individuals must pass state-specific means tests for income and assets. In general, an individual may not have more than $2,000 in assets to qualify for Medicaid. Some property is excluded, including the primary residence (within certain limits).
In addition, in order to pass legal muster, caregiver agreements must be arms-length, written contracts that are completed in advance in which the compensation for the services is reasonable.
"You can't do the contract after the fact and say this $100,000 was for looking after mom," says Bernard A. Krooks, founding partner of Littman Krooks LLP, a New York law firm.
It's also wise to solicit input from family members, in order to avoid problems later. Recipients of the care should have a comprehensive estate plan in place, including powers of attorney, to ensure their wishes are respected if they become physically or mentally incapacitated.
Contracts should specify duties the caregiver will be expected to perform. For instance, when Ralph Gobell and his wife, Ellen, entered into a caregiver contract with her elderly father, Richard Holden, their joint responsibilities included making sure Mr. Holden took his medications, preparing and serving his meals, running errands, keeping his house clean and tidy, and paying his bills, among other things.
Agreements also need to state the cost of the services. Depending on circumstances, compensation is based on the average hourly rate local agencies would charge for the service or at a discount to the market rate, says Ronald Fatoullah, a certified elder-law attorney who practices in Great Neck, N.Y. Charges vary widely by geography, from $12 to $20 an hour for personal-care services, to $60 to $150 an hour for geriatric-care management services, he says.
Like many caregivers who enter into such agreements, the Gobells were just looking to be compensated for the expenses they incurred, such as money spent on gas, and time they spent caring for Mr. Holden, who wanted to remain in his own home as long as his health permitted.
Contracts should also stipulate how the payment to the caregiver will be made. Depending on the circumstances, it can be an upfront lump-sum payment based on the senior's life expectancy -- or in regular installments, like a paycheck. In the case of lump-sum payments, it's advisable to put safeguards in place to prevent a caregiver from absconding with the funds, and have a mechanism for the return of monies in the event that a contract ends prematurely.
"Caregivers are also required to pay income taxes on the compensation they receive," says Kerry R. Peck, a managing partner at Peck, Bloom, Austriaco & Koenig, LLC, a law firm in Chicago. Depending on how the contract is structured (employee versus independent contractor), Social Security and other payroll taxes may need to be withheld, and so you'll need to hire an accountant or payroll service.
apologies for the person who posted that huge comment.. i didnt read.. its simply too big
பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.
puran,
[[53 as a reserve force.]]
Looks like '96 world cup. Openers, sanath-Kalu, are still blasting. Seniors are waiting in the pavilion.
wow.. again a big thank you to SITHSALA.
I can see 21 collapsed comments "bugger said" and 15 consecutive ones. Ha Ha It is so fun and good looking on the screen.. He should have done that when we were bored with DW out of action..
Hey poor bugger,
Guys in this blog are very smart. They use a firefox plugin called CollapseComments.
http://coloments.blogspot.com/
Nobody will see your comments. You poor bugger wasting your time here.
Poor bugger.
Wow folks, what happened here!!
See, as I always say, we should analyze the arguments and not the person, without resorting to "ad hominem". This is what I always try to do, and greatly reduces the friction.
Be nice to each other folks, it tells a lot about ourselves to the outside world...
..
....
Aandawane... toilet hodana bugger kolla meheta avith ne...
/53 is been stationed at Mankulam as a reserve force./
Are you sure? Mankulama or EPS?
/Looks like '96 world cup. Openers, sanath-Kalu, are still blasting. Seniors are waiting in the pavilion./
Ha Ha 58 Sana, 57 Kalu, 59 Gura, 55 Aravinda, 53 Arjuna.. nice..
பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.
Cheers to Sithsala!
.......
பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.
பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.
You cannot beat us !!!!
.....
This man first came as Saradiyel... no body cared for him... then he became a bugger!
he hee
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Mess with us we will come behind you...
பாகிஸ்தானுடன் துடுப்பாட்டம் விளையாடுவதனை தவிர்த்தது போன்று சிறிலங்காவுடனும் தவிர்க்க வேண்டும் என்று இந்திய துடுப்பாட்ட சபையிடம் பாட்டாளி மக்கள் கட்சியின் நிறுவனர் மருத்துவர் இராமதாஸ் வேண்டுகோள் விடுத்துள்ளார்.
இது தொடர்பாக மருத்துவர் இராமதாஸ் நேற்று வியாழக்கிழமை வெளியிட்டுள்ள அறிக்கையில் மேலும் தெரிவிக்கப்பட்டுள்ளதாவது:
உலகில் மனிதப் படுகொலைகளை நடத்தும் நாடுகளின் பட்டியலில் சிறிலங்காவும் சேர்க்கப்பட்டுள்ளது.
சொந்த நாட்டு மக்களை கொன்று குவித்து வரும் சிறிலங்காவின் போர் வெறிக்கு அதன் தமிழ் இனவிரோத வெறி தான் காரணம். சிறிலங்காவின் இந்த இனவெறிக்கு எதிராக உலக நாடுகள் பலவும் கண்டனம் தெரிவித்து வருகின்றன.
இந்தியாவில் வாழ்கின்ற 7 கோடி தமிழர்களும் இவர்களோடு சேர்ந்து மலேசியா, சிங்கப்பூர் உள்ளிட்ட பல்வேறு உலக நாடுகளில் வாழும் தமிழர்களும் சிறிலங்கா அரசாங்கத்தின் இனவெறியை வன்மையாக கண்டித்து வருகின்றனர்.
இத்தகைய சூழ்நிலையில் இந்திய துடுப்பாட்ட அணியினர் சிறிலங்காவுக்கு சென்று 5 ஒருநாள் போட்டிகளிலும், வேறு சில போட்டிகளிலும் விளையாட இருப்பதாக அறிவிக்கப்பட்டிருக்கிறது.
இந்தியாவின் துடுப்பாட்ட சபையின் தலைவராக இருப்பவர் தமிழ்நாட்டைச் சேர்ந்தவர். இந்திய அணிக்கு வீரர்களை தேர்வு செய்யும் தேர்வுக்குழுவுக்கு தலைவராக இருப்பவரும், தமிழ்நாட்டை சேர்ந்த இருவர் இடம் வகிக்கின்ற இந்த சமயத்தில், தமிழினப் படுகொலையை நடத்திக் கொண்டிருக்கும் சிறிலங்காவுக்கு இந்திய துடுப்பாட்ட அணியை அனுப்புவது என்று முடிவு எடுத்ததற்கு எப்படி இணக்கம் தெரிவித்தார்கள்? என்று புரியவில்லை. இது தமிழர்களிடையே வெந்த புண்ணில் வேல் பாய்ச்சுவது போல் உள்ளது.
விளையாட்டுக்களில் அரசியல் பிரச்சினைகளை புகுத்தக் கூடாது என்று சிலர் கூறலாம். ஆனால், அது ஒரு சார்பாக இருக்கக் கூடாது. அண்மையில் பயங்கரவாதிகள் சிலர் மும்பாய் நகருக்குள் புகுந்து தாக்குதல் நடத்தினார்கள் என்பதற்காக, இந்திய துடுப்பாட்ட அணியின் பாகிஸ்தான் பயணம் இரத்து செய்யப்பட்டிருக்கிறது.
இலங்கையில் பல்லாயிரக்கணக்கான தமிழர்களைக் கொன்று குவித்து வரும் சிறிலங்கா படையினரின் நடவடிக்கைகளும் ஒரு வகையில் பயங்கரவாதச் செயல்தான். இன்னும் சொல்லப்போனால், சிறிலங்கா படையினரின் பயங்கரவாதம், மிகக் கொடுமையானது.
தென்னாபிரிக்காவின் இனவெறியைக் கண்டிக்கும் வகையில் இந்தியாவும் முன்பு தென்னாபிரிக்காவுடன் எத்தகைய விளையாட்டு உறவுகளையும் வைத்துக் கொண்டதில்லை. அந்த வழிமுறையைப் பின்பற்றி இப்போது, சிறிலங்கா அரசாங்கத்தின் பயங்கரவாதம் மற்றும் அதன் இனவெறியை கண்டிக்கும் வகையில், சிறிலங்காவுடன் கிரிக்கெட் விளையாடுவதை இந்தியா தவிர்க்க வேண்டும்.
இலங்கையில் சண்டை நிறுத்தப்பட்டு தமிழர்களின் நியாயமான கோரிக்கைகளுக்கு பேச்சுவார்த்தையின் மூலம் அரசியல் தீர்வு காணப்பட்டு, இனவெறிக்கு முற்றுப்புள்ளி வைக்க முன்வராத வரையில் இந்திய துடுப்பாட்ட அணியை சிறிலங்காவுக்கு அனுப்ப மாட்டோம் என்ற முடிவினை துடுப்பாட்ட சபை எடுக்க வேண்டும்.
அதற்கு இந்திய அரசும் உத்தரவிட வேண்டும். இல்லை என்றால் வரும் காலங்களில் சென்னையில் நடைபெறும் அனைத்துலக துடுப்பாட்ட போட்டிகளை தமிழர்கள் ஒட்டுமொத்தமாக புறக்கணிக்கும் நிலை வரலாம். அத்தகைய நிலையை ஏற்படுத்த வேண்டாம் என்று கேட்டுக்கொள்கிறேன்.
இந்திய துடுப்பாட்ட சபையும் இந்திய அரசாங்கமும் நல்ல முடிவெடுத்து அறிவிக்க வேண்டும் என அதில் தெரிவிக்கப்பட்டுள்ளது.
Any one can use Sithsala's collapse comments to ignore buggers lurking here!
What the fcuk is this care giver BS?
/57 Div troops gain control over Iranamadu Tank bund- Kilinochchi/ -decence.lk
Does this mean whole tank is under SLA? If so time for Mahen to his next breaking news..
"SLA captured the useless Iranamadu tank amid soaring casualties after LTTE military panel decided they don't need tank any more and abandoned it."
NInja u left out the crucial word
tactical withdrawal
Oh hey hey
I think there are a few Peelamists here who have been doing overtime under the sun to fund the bastards and are dillsional, and by the way try sun screen it helps you know, in time like these. Suckers!
And the 2nd of February is coming u delusional LTTE supporters, and its seems like you look in the night stars and there going out one by one.look man fact is ur 14,000 Vs. 200,000 better equiped, better trained, its time you guys stopped doing overtime and came down to earth.
GUYS..
CAN ANYONE PLEASE TELL ME HOW TO INSTALL THIS COLLAPSE COMMENTS...
http://defence.lk/orbat/Default.asp
updated map 16th of jan 09
who is this bugger??
just waisting space??
Most of us in SL are living under extreme stress due to hardships and fear of bombs, reprisals and blatant violation of human rights by those who have power and money. I was nearly killed by a speeding land cruiser with escorting vehicles which was trying to overtake every other vehicle by flashing head lamps.
The country has gone to dogs. We middle class and poor people support the war but how long we will do it, I don’t know.
Most bloggers here having a good life in other countries and afford to blog for hours but do they have any idea what we go through here.
Anyway no point of telling or crying, this is our fate.
We could complain but nobody listen!
phantom machan. i dont know about this collapse comments addon but there is a link called collapse comments on the top of the page there is link called original post..
im sri lanka too goin thru the same hardships but the end is near.. cheer up.
saradiyel
y is the country like this??? due 2 terrorits and underworld! thats y gov is cleaning it up.
do u have any suggestions other than that?
Saradiyel says,
Wijayapala sakkiliyage koluwa mama thamai
Otuwan kande rajawunu ponnaya mamai
Soora Saradiyel mamai
Soora Saradiyel mamai
PHANTOM-X,
Go to the following url and install. You must use latest version of firefox for this. Also, you may need to register with mozilla (it's free).
https://addons.mozilla.org/en-US/firefox/addon/9218
Read http://coloments.blogspot.com/ for info on usage.
look fellows, the end, well there cannot be only a military solution brothers, cause then after this some extremists will pop up and then we will have the next generation of these fellows,we need to followup on military action with reaching those people and not make them feel there an oppressed minority, which the LTTE was showing to them.
even with all the toubles...
http://www.colombopage.com/archive_09/January1660346CH.html
Saradiyel
We understand.. please wait and have faith.. Ranil and Mongal will soon solve all those problems..
57 Div troops locate 6th LTTE 'air strip' - Iranamadu
Forward domination troops of the 57 Division now operating East of Iranamadu Tank bund have located the 6th LTTE 'air strip', this morning (Jan 16).
According to ground troops the air strip, 300m long and 15-20m wide is located Southeast of the Iranamadu tank bund, which is also said to be an extension of the existing road that runs parallel to the tank bund.
"What we see here is more less than a conventional air strip but adequate for a shorter lift off", a military official said. According to available information, LTTE has used this mainly for training proposes of its 'rudimentary air wing' and hardcore fighters. Possibilities also exist that terrorists might have used this as an alternative landing pad, the sources further said.
Troops are further engaged in clearing operations in the area, the sources said.
More information will follow.
phantom
ask sithsala, he will explain.
Collapse Commenst works super, all the unwanted bloggers comments can be collapsed and you will see only the name but not the long comments.
all at http://coloments.blogspot.com/
Saradiyel said...
Ane Hutto. Apith Inne Lankawe Thama. Umbata Oya Amaru Okkomoma awe LTTE eka kanakotada? Chandrika, Ranil LTTE ekata puka denakota thota owa hithune nadda? Tho wage bada mulata daagena hitapu ewun hinda thama hamadaama ratta kelawune..
duzz,
end of what? We have enough of everything now! We just want to live peacefully. It is too hard to understand?
I live close to Malabe-Athurugiriya road and even average civilians are acting like thugs. Each and every body ripping other people and this is a paradise for those who have money and/or power.
Do you think after winning the war this will go away?
Let us hope but I am not sure, mate.
[[duzz said...
57 Div troops locate 6th LTTE 'air strip' - Iranamadu]]
According to Mahen, the air strip formerly designated as the future Domestic Tamil Eelam Airport (DTEA) was abandoned by the LTTE several months ago with the international TEA. The entire infrastructure was dismantled by the LTTE before tactically withdrawing from DTEA. TAF had ceased operating from this airstrip from October 29 2008. So this air strip is totally useless.
Single said...
Saradiyel said...
Ane Hutto. Apith Inne Lankawe Thama. Umbata Oya Amaru Okkomoma awe LTTE eka kanakotada? Chandrika, Ranil LTTE ekata puka denakota thota owa hithune nadda? Tho wage bada mulata daagena hitapu ewun hinda thama hamadaama ratta kelawune..
LOL!
Well Said!
Cheers
Saradiyel,
PATHIROOPA DESA WASOCHA
live in proper places, otherwise you will be a thug.
duzz, Nisal, and SriLankikaya..
Thank you guys...!!!
yeah it's great...!!!
Nisal,
Can you please tell me how to Bold and Italic comments?
Moda Saradiyel...
dont you remember how many innocent people were killed by Idiot LTTEs.
why do u write for them. you are not a human been. you are in the same Idiot group.
Nisal,
You said live in proper places;
Mate, How many of us can afford to live in proper places? My house is only half finished and don't think to complete it in this life with prevailing situation.
Anyway, thanks bro, we will survive somehow, but the problem is > we cannot say what we want to say evan in a blog because bloggers like asithri, priyashantha, sam perera and pottu, misguided and pretending patriots who are real LTTE agents.
Mahinda Rajapaksa says:
1. War will be over in 2 1/2 months
2. Number of Vanni civilians in uncleared areas less than 100,000
3. On devolution, the answer was "Once the LTTE is defeated, we’ll hold elections in those areas. Let the people vote for whoever they want"
(Courtesy: Daily Mirror)
[PRESIDENT Mahinda Rajapaksa believes that the LTTE and its leader Velupillai Prabhakaran are presently confined to a minuscule area 30 km in length and 20 km in breadth in the northeastern district of Mullaitivu.
Over the last few days the rebels lost about 1,000 sq kms, shrinking the area under their control rapidly. Interacting with foreign journalists over dinner, Rajapaksa said that Mullaitivu town had all but fallen because it was being attacked from the north, south, east and west giving the LTTE no chance to stem the attacks.
Asked when the war would conclude he said he hoped to end it in about two-and-a-half months. The President accused the LTTE of holding the Tamil civilians in the Mullaitivu district hostage, to be used as human shields. He claimed that civilians had been asked to pay SLRs 100,000 to the LTTE to migrate to government-held areas. Although there were only about 1,700 to 1900 LTTE fighters now, the outfit was guarding all the exit points to prevent civilians from fleeing, he said.
When journalists pointed out that so far only 1,168 persons had come away from LTTE held areas and that it was possible that they did not want to come out, the President said that it was unthinkable that any civilian would want to stay on in a war-zone.
The LTTE was exaggerating the number of civilians who were trapped there, Rajapaksa maintained. “It is not 300,000 but less than 100, 000,” he said. Asked what Sri Lanka would be like without Prabhakaran, Rajapaksa smiled and said: “We’ll see!”. And asked if there was a chance that power would be devolved to the Tamil minority to solve the basic ethnic question, he avoided giving a direct answer, saying, “Once the LTTE is defeated, we’ll hold elections in those areas. Let the people vote for whoever they want,” he said.
On the burning issue of assaults on the media in the south of Sri Lanka, Rajapaksa said that his government was being blamed unfairly and illogically for the killing of ‘The Sunday Leader’ editor Lasantha Wickrematunge and the burning of the studios of Maharaja TV. “Will a government which is at the height of its popularity resort to such deeds to make itself unpopular?” he asked.
“I have told the police to investigate these incidents thoroughly, and find out who is behind them,” the President said.]
Puran,
Here's a basic guide
Read under "physical tags"
http://www.ncsu.edu/it/edu/html_trng/basic_commands.html#h
puran,
write comments like this
abcd <b>efgh</b> ijkl => abcd efgh ijkl
abcd <i>efgh</i> ijkl => abcd efgh ijkl
<b>, <i> is the key.
6th LTTE Air Strip captured by 57 Division
DoDo, Nisal,
Thank you my brothers...
/we cannot say what we want to say evan in a blog because bloggers like asithri, priyashantha, sam perera and pottu, misguided and pretending patriots who are real LTTE agents./
Hey asithri, priyashantha, sam perera and pottu,
what you did to saradiyel? Did you guys steal his computer?
Bhariva and All Die-Hard Disporas,
Please visit :
http://defence.lk/new.asp?fname=20090115_08
You will see:
1). How LTTE spent all your money
2). Development work done by LTTE for the Tamiz
3). Litearcy and Intelliegnce of your Tamiz
4). Attitude
For lat 25 years did LTTE spent a single Cent for the Medical or Educational benefits of the People there?
Did you South Indians uncles and Aunts gave anything for them?
It was government while fighting had to spent for the welfare of the people too.
You guyz are worse than dogs..Even Dogs has some gratitude for the people who feed them.
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