I'm an RN. In February 2023 my mom fell and broke her hip and arm. Dad got COVID pneumonia and is now oxygen dependent. I moved in with them in March providing all care for mother 24/7. In the future I may have to apply for Medicaid for both as dad can't return to work. If they compensate me, will this be an issue for Medicaid when that time comes? Thank you.
They should compensate you with their own funds. Make sure to have a written contract and do everything above the board so that there's a paper trail when it comes time to apply for Medicaid.
In most states, the financial portion of the Medicaid app has a 5-year "look-back" period. In most states, Medicaid only covers LTC and not AL, MC or hospice. LTC is medically assessed as necessary by a physician. You can consult a Medicaid Planner for your parents' home state so that you manage their affairs in such a way as to not delay or disqualify them (the appearance of gifting money is very problematic). If your parents don't have assigned PoAs, this needs to happen.
What I would do is contact Medicaid and see if you can get an aide or be paid. My daughter is an RN and makes good money. In your shoes, I may see if I can get enough hours with Medicaid and go back to work. By caring for your parents you are losing credit towards your SS. By working and living with parents you can help offset the cost of Caregivers if Medicaid cannot supply enough hours.
If your parents are compensating you for in home care, anything above the required care may be considered gifting. If you are looking at Medicaid in the future this is something you can in no way risk.
Your question needs now to go before an Elder Law Attorney. This will go according to the laws of your state and will involve contracts. If you do shared living expenses it isn't considered income, and isn't gifting. But you need the contractual agreement. This is something you cannot stint on. Don't count on the answers of any Forum on Social Media, because that won't count if you run into trouble for doing it wrong later.
See an Elder Law Attorney now.
Contact the government (yes, I actually said this). Ask your tax preparer or tax accountant.
Check Out this link:
https://www.payingforseniorcare.com/paid-caregiver/elderly-parents
In part, it says:
"Introduction-Many adult children wonder if they can be compensated for the countless hours that they spend caregiving for their aging parents. This is especially true with those family members who are caring for a loved one with Alzheimer’s or another form of dementia. The short answer to this question is yes, it is possible. Unfortunately, the short answer is insufficient, as the subject is complex. Many variables impact whether a loved one who requires care is eligible for such assistance, and what many people fail to ask, is if they, themselves as caregivers, are eligible.
The article that follows comprehensively explores the many different options and programs that can be used to pay family members as caregivers. However, this in-depth exploration makes for heavy reading and many of the programs won’t be relevant to the reader based on varying eligibility criteria, such as veteran’s status, income, or state of residence. An alternative approach is to use our Paid Caregiver Program Locator. This interactive tool asks a series of questions and provides the reader with a list of programs that are relevant to their family’s situation.
Gena / Touch Matters
I would research what programs your state offers for in home care and see if they do allow family as care givers (I believe most do). Then look at getting them on Medicaid if that is needed in order to qualify for the program.
This way they don't have to loose all the little income they may have left. They can live in there own home and not loose everything they have.