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MaggieMarshall said it well. While it's completely unfair since many family caregivers give up paying jobs to provide the needed care which often keeps people out of nursing homes far longer, paying them could become a problem if the elders should ever need Medicaid.

I'd check with an elder law attorney to see if there is a way that this can be handled. I do think different states may handle payment differently, so it's good to get legal advice from someone who knows your state's Medicaid laws.

Good luck,
Carol
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I think there are plenty of parents who pay their children to take care of them. The problem is that that can be a PROBLEM. If your parents need to eventually go on Medicaid, they do a five-year look back at your parents' financial records. Seeing checks written out to a family member for care or rent or anything else will most likely be disallowed for Medicaid purposes. Medicaid considers care giving of relatives to be a "gift" -- UNLESS one has a service contract in place with them, and their parents treat them like an ordinary employees (withholding and paying Social Security on their behalf), and unless the care giver keeps a written log of his/her daily activities. And even THEN, the amount they allow is nominal.

This is all done to prevent a parent from giving away all of his/her assets in order to qualify for Medicaid. I think it is VERY unfair.

I take $1000 a month from my mom. I'm her 24/7 everything. I do this because it makes me feel better. But I'm in a position to pay all that money back if it comes to a point where mom has to apply for Medicaid. I don't think she will. But if she does? It all goes back.

In the process of Medicaid's look back at a person's finances, be prepared to prove up any amount over $500 -- that it was used for THEIR care or expenses and not yours.
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I know some caregivers who are directly paid to take care of their parents. In my case, my mother pays room and board to live with me. I do take care of her, but she's still not at a point where she needs a lot of care.
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We are live-in caregivers; my dad's money covers the utilities, water, phone, property taxes. We purchase all groceries and incidentals involved in the upkeep of a house (cleaning products, gardening tools, etc.) Occasionally dad will give us a small amount of cash for groceries or when an unplanned emergency comes up, but otherwise we abide by the plan we agreed on when we moved in with him in 2012.
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