My siblings and I moved my Mom from Assisted Living (because she was needed more attention due to her dementia) to my brother's home. We hired my sister-in-law to be caregiver, as POA and trustee, I pay my sister-in-law out of my Mom's funds. We went to an elder attorney and got a caregiver agreement (and also set up an irrevocable and revocable trust for my Mom's funds). Now as for the sister-in-law, we plan on doing a 1099. She will need to track her own deductions, like food, utilitilies, rent, etc. Does this sound like we are doing things to satisfy the IRS and Medicaid (should the need ever arise.)?