This is a good deal because she is a nurse and feels at home there. My mother has the money to do this (I am the POA) but will there be a problem down the road with the other siblings after my mother passes (she is 97). I am also the executor.
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Gifting would definitely cause problems for Medicaid, and perhaps with with your siblings. If there is no chance of Mom needing Medicaid, and if your siblings can accept this gift as payment for services, then treating it as a gift may be OK.
BTW, I think you are being very wise in compensating the caregiver while the services are being performed and not deferring it to trying to get it out of the estate after mom passes. Take the next smart step and have an Elder Law attorney have you set this up.
Ohio doesn't have either inheritance or estate taxes, so that is not a concern.. $10,000 a year is a good deal for your Mom to get care, assuming yur sister is willing to do it. But, it should be with an agreement and done properly. Do you aniticipate objections from your sibs? Skip taking anything yourself. There would be no justification for that.
You mentioned your sister is nurse, is she retired? I was wondering why she is on Medicaid. The $10k could cause issues with her Medicaid qualification.
Now for your Mom, if the time comes where she needs a higher level of care [3 full-shifts per day], thus needs to be placed in a nursing home, could Mom afford that or would she need to apply for Medicaid? Medicaid might disqualify her because of the $10k given to your sister and to you.
As for the siblings, make them the same offer if they take her 24/7. If none of them step up, so be it. They've been offered. Gift away in my opinion.
The best way to handle this is to make sure your sister and mom (or your sister and you as POA) set up a care contract (like an employment contract) so that the money she is paid is seen as payment for services...not as a gift. If this is done correctly (an elder lawyer may be of great service to make sure this is set up correctly) then there should be no issue.
Without a proper care contract, the money your sister receives could be viewed as a gift and either a) disqualify her from medicaid if the need ever arises, and b) cause issues with the other siblings when they seek their inheritance.