How do I pay myself for caregiving and give myself a 1099? - AgingCare.com

How do I pay myself for caregiving and give myself a 1099?

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Mom has plenty of money. She will never need Medicaid. She is on hospice and home with me. It is a blessing. I am however unable to leave her alone. Hiring sitters would cost more than it is worth leaving her in my home with strangers. Is the expense of her care (water, power, land line for her-I have a cell) How do I keep that separate? Do I worry about this? I have one sibling who is sadly also terminally ill. I want to send him money too before his and her death. 14,000$ is allowed a year I hear. Who answers these questions?

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As one whos mom was on hospice for 18 months, heres my thoughts..... The hospice mom is with, do they have a free-standing hospice unit? I'd speak with current hospice group to see & if not, who they do a referral to. Like VITAS & Compassus have freestanding in many cities. Then find out what the not covered by Medicare room & board daily cost is at the in-unit hospice. Say it's $ 500 day. I'd set aside 60 days / $ 30,000.00 to cover that possibility at a minimum. Mom may never need this but if she does, as her daily care needs gets beyond your ability, the $ will be there to pay the not paid by Medicare room & board. Contingency plan #1.

Often free-standing happen as their pain management needs are best off in a 24/7 staffed facility.

So after plan #1deducted, mom has 200-300k? If mom will never qualify for medicaid, that's kinda what she will need to cover care for a year or two in a NH. I'd suggest she keeps that much aside as contingency plan #2. What if you get hit by a bus, or get ill?

So add up both, how much $$$ is left? If moms ok with this, she can gift brother the iRS tax free maximum of $ 14k. Then Jan 1, 2018 has another check ready to go to him. If married, then wife gets a gift as well. Mom can pay a % of your household costs, the IRS has guidelines for how to determine home-office deductions & you kinda can use these as a guideline for what mom pays either to you or writes a check from her checking acct for her % to utility co, insurance, etc. Pays 100% for landline.

Unless you really really need the $, I'd suggest not getting paid. Rather have it so that all moms banking is done POD (pay on death) & your the beneficiary designation on any other assets. Ifnot already done, mom will need to be able to go to the bank and do this. She will speak to a bank officer on her own so she must be competent enough to do a POD. It will be a pretty straightforward asset transfer to you after she dies.
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Is Mom OK with this distribution of her money? It really has to be her decision.

I assume she has a will. Is she still OK with what is in that? Since she is on hospice it is likely that the will goes into effect fairly soon. Would just waiting for that be satisfactory?

But ... if there a reasons for getting this money now, I don't see why your portion can't just be a gift, like it is for your brother. Why complicate it by making it payment for services? What if Mom gives both of you $14,000 now? Or she gives him $14,000 and you $18,000 and pays the gift tax.

Proving that you spent money on a land line, etc. and worrying about a 1099 seems unnecessarily complicated. IF mother is willing, why not just accept gift money from her?
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