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Momshelp Asked November 2018

Will I need individual caregiver contracts for Medicaid look back or questions from trust beneficiaries after moms gone?

Hi, I hired private part-time caregivers, but pay them through a payroll service. Taxes taken out & direct deposits. They all filled out applications as caregivers. Does anyone think I would still need a caregiving contract from each one? Everyday I log who works & what they did, it's close to same thing everyday, but I write it up in notes on my phone. I plan to do a performance review & raise in January so it'll be a bit late but I could write one up then. 2 of them are close relatives, one sibling & my spouse, will that be a problem? I don't get paid, I put in about 80 hours a week, but they are here to allow me some of my life & mom to stay in her home.

Isthisrealyreal Nov 2018
Yes, you need caregiver contracts.

Medicaid will look at this as a way to get her money. I know that is not your intention but they will want to be sure that is not the case. Having all the other items in place, would be preceded by a contract with anyone besides family. You can see how it might be mistaken, especially if you get some 20ish know it all that is going to save the system, starting with you.

Go online and see what exactly your state requirements are for documentation of spending. That is the only way you will know if you are in compliance or not.

Medicaid is state specific so I can't give you valid information about your situation, nor can anyone else unless you are in the same state and then do you really want to trust my interpretation of the rules? At the end of the day you will be the one paying the price if you're not in compliance.

Momshelp Nov 2018
Hi, trust has only her home that as successor Trustee(mom has dementia) I reversed mortgage & the money I'm drawing is going into the trust checking account. Trust drawn up in 2001 with only home & car that's long gone. Now that mom has dementia it is irrevocable, she is sole beneficiary until her death then it's her children equally. No investments. It's an old house but if I'm conservative, & continue doing my share, I think she can live at home 3 more years if her health & mobility remains decent. If her needs rise then the pay for caregivers will need to rise so maybe less & if that's the case, she'll need a nursing home. I have the I9s & payroll gives out W2's. If she needs to go to a nursing home before the money is exhausted of course Medicaid can have it. I'm paying family members the same amount as other caregivers & about 80% of time they actually put in. Figure the rest is what they would do for mom anyway. Other siblings do nothing which is a huge part of why I reverse mortgaged the home. Not going to kill myself 24/7/365 so at the end we split the home inheritance, the only thing mom has. They thought I would do that or that nursing homes were MAGICALLY free & she would go to one, & the home would be saved for inheritance. I am positive they will allege I mismanaged moms care out of spite once she's gone. So do you think I'll need caregiver agreements with each employee? I have time cards punched in & out too.

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Isthisrealyreal Nov 2018
If you are planning on Medicaid and the caregivers are family, yes you should have a contract with each one.

Medicaid will look at any money to family members more closely as people are always trying to hustle the system and hide money.

Look on their website and see what they require, then you can comply and know you are following your states requirements.

igloo572 Nov 2018
You mention Trust, it’s beneficiaries, payroll, Medicaid & mom’s death.
Your ? is confusing. Imo these are all separate issues that intertwine.

Its the Trust that’s paying the payroll firm, that’s it, right?
(Id suggest you do new W-9, I-9 & caregiver agreement for 2019.)
The beneficary is your mom, right?
And your the trustee & signatory on Trust banking, right?
I’m guessing this Trust is fairly recent?

Personally I think you need to step back and carefully relook at what this Trust is and whether or not it’s set up to deal for Medicaid rules for your state. Like Trust is revocable or irrevocable; if it’s a special needs Trust; if Trust has income sources totally titled within & owned by the Trust so it can self fund; if it is truly Medicaid compliant, not Medicaid “allowed” or “eligible” but Medicaid “compliant”.

Trusts are their own legal entity. And just what that is depends on how they are set up. You’ve got to understand what this Trust is. Medicaid lookback happens when she applies for Medicaid not after mom’s gone. Trust may or maynot be an asset available for spend down.

Like Is this a more traditional irrevocable long existing trust, like with 800k-1M+ funded years ago, so has ability to continue after she dies and then onto secondary beneficiaries that an estate atty did and there’s a financial advisor or broker that deals with trusts investments. Or rather is this a new 100-400k funded from savings or house sale “trust” that came about from some sort of dinner or luncheon seminar?
Isthisrealyreal Nov 2018
If there is 100's of thousands in the trust, mom should not apply for Medicaid. No matter if it is set up to allow this, it is morally wrong to burden taxpayers when the money exists for moms care. Just my thoughts on your post igloo. You are a true asset to AC forum.

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