Importance of caregiver contract?

According to the nursing home my Mom is in, it’s VERY important! My mom is spending down her money & will apply for Medicaid. The nursing home knows this & asked if we had paperwork that proved her money had been going to caregivers, instead of gifting. We have timesheets & IRS records. Even if you have no intentions of ever placing your Mom in a facility, you might have no choice later. Better to be safe than sorry!

One advantage of a payment agreement, for many if not most people within a family, is that an unpaid carer often expects to be thanked, and also to be recompensed in some way when the estate is wound up. In fact, many people who are cared for get more difficult to deal with as their condition deteriorates, and can end up being nasty rather than grateful. You may also find that everything is left to the ‘golden boy brother’, or is left equally with the siblings who have done less than nothing to help with the caring. This can leave the carer feeling quite bitter, and can destroy family relationships permanently. It’s even worse if the people who don’t help, have also put pressure on for Mom or Dad to stay at home to minimise costs and maximise their inheritance. Payment for what is being done when it is being done is a straightforward way to avoid these problems, and also to make sure that Medicaid rules are followed.

If mom is paying you, you NEED a caregiver agreement. If she ever needs Medicaid, her assets will be subject to a five year look back. She should not be spending any money or giving away money as Medicaid will consider what cannot be documented as a care need as a gift.

And the care you are providing is medically necessary as documented by her doctor.

And I do not know about Medicaid paying for assisted living. That should be the question at the top of your list.