I moved in with her (she has no house payment) to do this about 8 years ago. I work at home part-time as a medical transcriptionist. I dropped my hours from 40 to 20 because I was getting burned out trying to work AND care for Mom's worsening condition. Up until now, I haven't been getting paid, well, other than not having to pay rent, which is nice. But I did have to lose half of my income by going part time. However, my sister thinks I should be getting paid (mom can afford it) for my caregiving duties, which of course include a lot, up to and including the fact that mom is incontinent (of both). However, I am the POA (which we got a while back when Mom first starting showing signs of memory loss - back when I really wasn't sure all it entailed). Is it possible to be the POA and still set up a paid caregiver's contract? How is this done? Is a lawyer a must? I'm guessing the answer is yes but I'm hoping to hear whether it's even possible being the POA. Another question: I know there has to be some sort of notarization but Mom can't understand or wouldn't admit she needs help of any kind (though it would be 100% obvious to anyone who met her she did), and even more importantly, she can't sign her name anymore, so she can't really give consent per se. I do have a letter from her doctor that states she needs help with all "activities of daily living" and but for my care she would need a memory care unit. It just all seems almost not worth it, seeing a lawyer, doing everything required for the IRS so that she CAN pay me, etc. At the same time, I think if I DON'T get this paid agreement so I can replace some of the income I lost I could be in trouble soon. As well as I'm thinking of the implications and problems with getting her on Medi-Cal when the time comes that she needs an actual nursing home. Any words of wisdom and advice will be much appreciated. :)
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2 - ask her to write up a formal letter to you saying that she has read the report from the dr & has seen how you care for your mom & that SHE would like you to start paying yourself appropriately -
3 go to an accountant to set it up & take off taxes etc - your mom may be able to deduct this as medical care - also accountant fees should be deductable too - use this accountant for her taxes from now on - it probably will more than pay for itself with all you have to navigate - if possible have them pay you from an account that is set up for this with all taxes etc shown on the cheque & use paper cheques to complete the paper trail just in case - have direct deposit retirement savings for yourself
4 - you don't pay rent but you are also night staff with interupted sleep & I bet you can't change anything from what mom wants either so you are not 'renting' but on duty all the time
5 - set up a 'get away' time for yourself like a movie matinee, shopping, spa treatment but WHATEVER YOU WANT TO DO - hire someone for 1 afternoon or evening a week because if you hired someone they would insist on time off
Good luck with your new life style - hugs from many here
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If there are other people close, particularly beneficiaries, it is in any case a good idea to talk to them. Explain the situation, see if they have any problems with your proposal, and get something in writing from them indicating that they are OK with the arrangement. Care that goes on for a long time may mean that the estate is much smaller than expected, and that’s when questions arise. Gossip can be very hurtful.
Oh, I just checked - I said this as the first post!
As for the suggestion someone made about paying a caregiver -- tried that route -- Mom refused to let her help her do anything and I ended up doing more work when the caregiver was here. LOL. Have to laugh at that.
Thanks to ALL again. I am so grateful for this site.
aarp.org/caregiving/financial-legal/info-2017/you-can-get-paid-as-a-family-caregiver.html
It's probably worth the hassle to see an elder law attorney. And I agree with prior posts - take a look at the POA. It usually allows for expenditures for legal or tax concerns, and I would think this falls squarely in that area. This cost probably shouldn't be coming out of your pocket.
You might also ask the Elder Law attorney about drawing up a trust to shelter your mother's assets. CMS has a 60 month look back, I believe, so probably the sooner the better for sheltering anything that needs sheltering.
I'm not a tax professional, but I think that there can be a tax benefit to your Mom for paying you for caregiver services. Agree with the other suggestions that you should also see a tax professional - he can explain how to set up payments, withholdings, etc. to maximize any tax benefit of the arrangement for both of you.
It sounds daunting, I know, but if you can find good professionals, as someone else pointed out, legal and tax professionals are good people to have on your team! If I can make a suggestion - see if anyone you know can make a referral. I find going with someone who's recommended by an existing client is a great way to get "top notch" service.
You can use your mother's money to pay other people to provide personal care, would that free you to increase your working hours?
I'm sorry, I agree it's a pity that this wasn't "thought of before", and I'm glad that your sister recognises the huge value of what you're doing even if the rules don't seem to!
In the words of the great (& missed every day) George Harrison:
“Let me tell you how it will be
Theres one for you, nineteen for me
’Cause I’m the taxman, yeah, I’m the taxman....
if you drive a car, I’ll tax the street,
if you try to sit, I’ll tax your seat,
if you get too cold, I’ll tax the heat,
if you talk a walk, I’ll tax your feet,
’Cause I’m the taxman, yeah.....
Taxman by George Harrison, from Revolver, 1966.
& I still have original album 😎 bought at Joske’s
I've had my mom living with me for the past 4 months and I'm happy to have her continue to live with me until either she passes or I am unable to provide the level of care needed. I quit my full-time job to provide her caregiving, and as since have only been making her pay for groceries. After the new year, I plan to have a paid caregiver contract in force and be able to have a little income (while still keeping myself Medicaid eligible) and reduce mom's assets closer to the Medicaid spend-down.
Since I am her POA and also have 3 siblings, I will definitely have an attorney draw up the paid caregiver contract; while not absolutely necessary, I would just feel better as POA that my siblings not see me as double-dealing.
A Geriatric care manager can assist with determining a fair amount based on mom's needs and tasks that you perform. You cannot negotiate with yourself.
You may consider an attorney of your own to review the agreement. Mom's attorney would prepare it on mom's dime.
Not worth it? Of course it's worth it! Please consult an attorney familiar with Medi-Cal qualification so all is done correctly.