My sister in law is intending on quitting her job to take care of her mother full time. (she makes about $350 a week part time) It's needed. My husband and I are in full agreement that this is necessary. Mother needs more care. To offset expense and the lack of income we told her to have mother contribute to the cost of household expenses, mortgage, heat, or call it rent, etc. We also want the mother to pay the daughter a weekly stipend for care. This is so the daughter does not have to ask her husband for money because she no longer works. Is this set up going to get us in trouble with Medicare? Is this going to cause an issue with the 5 year look back with Medicare?
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$1000 for a elder law attorney to set that up seems so cheap to me. Where I live, it's costing several times that.
U r so right......have seen u on several threads & am grateful for all your advise.
I'd like to add that I looked into this & now wish I had followed thru as it is a legal spend down to Medicaid.
My attorney was charging $1000.00 to set it up. Mom & I thought that was steep but it makes so much sense on many levels.
It is income for the caregiver so she must report as such & pay taxes. So essentially you are paying taxes on those funds twice as the patient already paid taxes on said monies thus we decided against. I am still working a 32 hr week & thought the additional income would not really benefit me as I don't really need it right now.
Am revisiting the idea as we are on the verge of placement. Correct me if I am wrong Igloo but won't the additional income to me raise my SS payments?
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Often what is suggested is for the elder to do a personal care contract between the elder and the child they live with. Mom pays daughter from her income (SS, retirement, annuity) and her assets. Contract done by elder law atty and done all above board & legit. It’s not realistically a DIY project as amount paid is dependent on community standards. And besides mom may need to have all her legal updated & reviewed as well.
I’d suggest you make a pot of coffee or favorite adult beverage, and read though the many articles and Q&As on this site to get a vibe as to how others have approached this.