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I wish ALL caregivers would arrange and document reasonable compensation from their loved ones from the beginning. I am very glad that my sister is accepting money from our mother who is living with her.
When you apply for Medicaid, you sign off on an all access pass to all their financials, stuff will eventually surface. For my mom's application, the required banking documentation was for 3 years & 6 months plus front & back on all her insurance policies, funeral & burial policies, assessors statement on property ownership, etc. It's a pretty detailed review and moving $ around at the end will be found out and cause the application to be denied unless the $ cab be justified with documentation.
If you have her pay you now, the reinbursement will be viewed as gifting and will cause a transfer penalty issue to coming into the picture for Medicaid. Caregiving by family without a valid personal services contract (with all the 1099 & tax consequences) seems to be viewed as done for free as a loving familial duty. There could be the possibility of having the elder care attorney do a personal services contract and other documents regarding her room & board now, but really you need good legal to do it correctly so that there is no transfer penalty issues.