Can my daughter be paid as the primary caregiver for her grandmother?

Lostinthemix, if the government you want to bypass is the IRS, then your MIL can gift your daughter up to about $15,000 annually without incurring any gift tax on her part or income tax for your daughter. Your MIL can also gift larger amounts without gift tax or income tax consequences by declaring on her tax return that such gifts are part of her $5.2 million lifetime estate exemption. However, if you think your MIL may need Medicaid assistance within the next 5 years, be aware that any such gifts will be used to calculate a penalty period during which Medicaid assistance will be denied.

There is a form on this site, if you type “caregiver agreement “ into the search bar, which is at the top left (horizontal lines). This is a form you can fill out so your daughter can get paid from MIL’s funds. I’m not sure if it can be under the table though. Maybe someone else can advise on that. I’m too afraid of Uncle Sam!

Need more, LITM.