For the elder, tax issues may arise when the elder`s estate is sold to make the payment under the contract. However, there is no tax on donations, since fair value is paid in exchange for payment under the contract. For the guardian, the payment to their beneficiary must be indicated as income on their tax return. The personal services agreement must also be forward-looking and not retroactive (a manager cannot be paid for previous services or provided). Anyone who provides services can be the supervisor. This may be a family member, a friend or a professional caregiver. Although most contracts involve local facilitators, a non-governmental tutor may provide a few hours of services per month. In addition, the guardian (often a family member who worked for free) receives real compensation for his services, which will relieve them of some financial stress. First of all, I would like to say that I have never tried to make that point to Medicaid.
I have never heard my colleagues in Florida say that Medicaid has tried to get money back from a supervisor. The manager cannot obtain more than the fair value of the services provided. The average number of weekly hours the tutor will work must be taken into account, in addition to the current rate of pay in the Community for these services. The life expectancy of the elder is also a factor. Payment to the guardian is not considered a gift. Although non-binding, the general understanding is that the caregiver will use the money for the elder if necessary. The Florida Supreme Court ruled that Florida`s care home law only requires nursing homes to provide just over two hours of care per day, meaning residents can spend most of the day caring without having personal hands. Enter the personal services contract. In essence, a personal services contract is a contract between the Medicaid applicant and a designated attendant for services that are not provided by a qualified care home or assisted accommodation facility (for example. B, participation in nursing home scheduling meetings, relationships with lawyers, participation in medical appointments, advice, conducting the elder at appointments or even entertainment events and many others…).