check with an elder attorney. yes people can accepts gifts under $15,000 (concerning IRS) HOWEVER if they pay you by check and would need to go into a nursing home BEFORE 5 years is up, you might have to give back that money because NH feels that people give out money so that the NH won't get it. This is what the elder attorney told us when dad went into a NH. So double check for your area. wishing you luck.
In terms of giving/receiving gifts, the POA isn't any different than anyone else (like family) receiving gifts. As long as it's under $15K for 2020, it doesn't have to be reported to the IRS, anything over that needs to be reported with a 709 form. You won't pay taxes, and the gifter will not pay unless it's over some astronomical amount like $2M (you can google it). That said, should the gifter ever need Medicaid for long term care, that gift amount will be calculated into the eligibility time for receiving long term care. However, long term care is on average $10K per month, if they give you $5000, that's 1/2 month they won't be eligible. And, of course, that's using the 5 year look back period. If they give you $5K for Christmas in 2020, and request Medicaid for LTC in 2028, no problem.
It may depend a lot on the size of the gift. After all, many POAs are family members, and no-one says they can’t get birthday presents any more. Money is often easier for people that can’t get out shopping and don’t know what you would like. Perhaps you could decide on something that would be nice, tell them that they have given you that thing, take it round to show them, thank them for it, and always refer to it as ‘their present’. Money is a lot more tricky than a ‘thing’ that looks like a present.
Gifting could be counted against them if they needed a Medicaid bed at a facility in the 5 years prior to entering a facility. Go to and elder atty and set up payment the right way to avoid problems down the road.
A POA may be paid as the agent of the person assigning/requesting that you act as POA. I would do it that way. Then it is legal, it won't be considered as "gifting" by anyone doing a lookback for Medicaid or for any other reason, and everything is then aboveboard. Some people accept payment for acting as executor or as trustee, also. Because you are responsible for keeping careful records as a POA I would think that a "gift" you pay yourself out of someone else's funds could be called into question. There may be a time the person is unable to remember saying they made you this gift; they may have family swoop in and accuse you of fraud. Just saying, do it right and then you never have to worry about it. Fiduciaries appointed by the court are always paid. It isn't wrong to get reimbursed for all this work, but it is better to do it right.
That’s good info. So many posts regarding POA seem to be family caring for family and doing it out of love or duty. I had not considered this aspect. It’s good to know for myself as I have no close family and have been thinking about who I could ask to do this. It’s like having an agent or manager.
I would think that depends greatly on how much cash they want to give/gift you and how much they can afford to give/gift you. I also would think it depends on if they are competent or not. Are you currently acting as their POA ? And is it POA for both Health and Financial affairs?
OK, just read your profile (should have done that sooner) and since you are taking a lot of time caring for them and you are transporting them to appointments they could pay you as a caregiver. I would have a contract written and detail what you are doing, what you will do and how much you charge per hour. Check with a few agencies in your area to come up with a $$ amount per hour. And you can also charge them for mileage. This would not be a gift and should not be a problem later on
I would be very cautious about accepting cash gifts from them. Depending on their overall financial resources, their age and their health they may need to apply for Medicaid to afford residency in a facility for AL, LTC or MC. In some states the Medicaid application look-back period is 5 years. Gifting could delay or disqualify them. What state are they living in? Are you their financial PoA? Maybe it is possible to have some sort of contractual legal arrangement so that you're paid and it isn't seen as a gift? This is a better question for an elder law attorney/estate planner who is versed in Medicaid for their state.
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I think the moral decision depends on how much it is. The legal decision definitely depends on how much.
I like the idea of them paying you for your help/services, and that way it isn't a gift.
I also would think it depends on if they are competent or not.
Are you currently acting as their POA ? And is it POA for both Health and Financial affairs?
OK, just read your profile (should have done that sooner) and since you are taking a lot of time caring for them and you are transporting them to appointments they could pay you as a caregiver. I would have a contract written and detail what you are doing, what you will do and how much you charge per hour. Check with a few agencies in your area to come up with a $$ amount per hour. And you can also charge them for mileage. This would not be a gift and should not be a problem later on
Stick around.