My sister traveled from FL to OH to care for elderly mother for 5 days last week. She now insists to be paid for service and airfare. How can I do this without having it appear as a family gift of money which would negatively affect future application for financial assistance such as medicaid?
Otherwise, if your mother has some assets, you could draw up a contract between the two of you and have it notarized, or see an estate or elder law attorney to have a contract drawn up. You want to do this legally so that if your mom does go on Medicaid they won't come after you for the money paid out. Since states can be so different, I'd strongly suggest going through an attorney who knows your state Medicaid laws.
Good luck,
Carol
Your specific question about paying back your sister could be done with a contract, I'd think. Specify what the money is for and why it was paid out for your mother's care. You should at least have it notarized. If you want to be very safe, see an attorney and have it done that way. Yes, it will cost a little, but it could be worth it for your peace of mind.
Take care,
Carol
Was your sister specifically asked to come and help out? If so, were any discussions had regarding reimbursement?
Are there other siblings, and if so, have they visited, with or w/o compensation?
If your sister came voluntarily, on her own initiative, I think it's inappropriate to now ask for remuneration.
And evning out the situation, are you compensated for your work?
I didn't ask my sister to come up, but certainly did not object to a visit from her. Mom may have asked her. There was no discussion of compensation prior to the visit. This most recent visit I had to loan her airfare.
3 children, me and 2 sisters. Mom in OH. Youngest sister lives 5 miles away. Sister in FL. And me in OH 130 miles away. Younger sis visits often, almost daily, sometime multiple per day, usually short under an hour. Sister in FL not often. Years without a trip to OH. But twice this year since Mom has been ill. I typically see her about monthly. More often this year. I often time visits so I can transport her to doctor appointments. No compensation has been made before aside from Mom slipping a few bucks to younger sis or grandchildren for "gas money".
It may be inappropriate for older sis to ask for remuneration, but as steward of the meager funds the family has, I have to deal with it. We can afford to do it, but that will mean fund will deplete sooner. Once our resource is depleted, Mom will have to apply for Medicaid. She has made family gifts in the past which, to my knowledge, would disqualify her. I am attempting to curtail that.
So I need to know how to make payment to older sis and have it appear legitimate care expense and not a gift.
No, I am not paid or compensated and not really interested in receiving such. I do not like spending time on this. I am not wealthy but I am able to live on retirement income without assistance.
Thanks again for the advice.
I now understand your position. And honestly I'm now not sure other than Carol's suggstions what I could offer as advice as this isn't something I've dealt with yet. But I am in favor of getting solid legal advice to plan for eventualities, and that's what I would recommend beyond researching Medicaid rules.
Elder law attorneys typically include Medicaid qualification if requested in counseling, so that would be my recommendation. You could tell your sister you're working on a legal way to compensate her, and that the method has to be done in such a way as not to present an issue with Medicaid qualification.
I've worked in law for years so I know the good attorneys in this area, but if I needed a reference, I would ask someone I respected, or would search the state bar association directory for elder law practice groups in my area, check out their websites, then contact them to get more information on their approach (as well as billing terms).
Wish I could offer you more advice but I know that Medicaid rules are tricky and must be adhered to religiously.
Good luck, thanks for sharing your situation and also demonstrating that families really can work together to care for their parents.
Yes I know we need a contract. We needed it prior to the visit. But now have to do it retroactively. If possible I'd like to avoid expense for lawyer. Can you lead me to a sample contract? Or do you think a social agency worker in my area could help me determine what is needed to stay clean with regards to possible future Medicaid application?
Thanks,
Jeff in OH
As to your response to Carol, excuse me for answering but I do want to issue some cautions. A social agency might offer guidelines on Medicaid apps and qualifications but wouldn't really be qualified to draft contracts (although I understand that's not what you're asking).
There are a couple alternatives, since contracts really should be prepared by attorneys.
Legal aide" in SE Michigan one law school has an elder law planning legal aide clinic, and there are a number of legal aid agencies. Some law firms also provide pro bono services.
Contact your local county bar association and/or find the number for any county bar association legal library. Ask the librarians for information on sample contracts suitable for family caregiving Medicaid compliance.
ICLE: Institute of Continuing Legal Education. The Michigan one has excellent seminars with excellent manuals. The courses are expensive but even if you didn't want to take one (and I'm not sure they would cover Medicaid rules), the cost of the manual would be cheaper than legal counsel.
Some law firms hold informal "seminars" in which they provide a lecture then Q & A sessions afterwards. You could pick up some tips at one of these.
Ask the Area Agency on Aging if they plan to hold their annual AAA Caregiving Expos anytime soon. That's also an excellent place to see which elder law attorneys are very active, offer free handouts with good advice, and may have free "seminars".
The only online source I would ever consider for guidance on forms is Nolo Publishing. I sought advice from their sites years ago and it was "spot on", exactly the kind of advice I'd expect from knowledgeable legal professionals (I've worked in a wide variety of legal practice areas over about 40 years +/- so I knew what I wanted when I did the research).
Good luck.
"She has to become a W-2 employee. She cannot be an independent contractor and receive a 1099. She can receive a 1099 only if she is in the trade or business of being a health care provider. If a person earns more than $750 in a quarter or more than $1900 for the entire year, payroll taxes must be paid (by your mother). She would be able to do this when she files her 1040 by attaching Schedule H, which calculates Social Security and Medicare taxes for the hired person. The hired person is considered a “household employee” and rules for that type of employee must be followed."
Now it becomes much more than I signed up for :-(
But I'm surprised that a family member would have to be treated as an employee. However, you certainly took the right path in contacting your accountant friend.
I can see a couple options:
a. You wrote in one of your posts that you paid your sister's way this last time, as a loan. If so, then I must have been confused that she wanted reimbursement for travel costs. Or is she just asking to be paid for "services"? What about lodging? If she stayed with your family, there wouldn't even be these costs.
Does she have any professional medical qualifications that would be construed as "services"?
b. E-mail her with your accountant's message (leave his/her name off). I don't know how anyone could legitimately consider a family member an employee for the purpose of coming to visit. So it may be that you won't be able to help her out.
c. If so, you might want to make it clear that any future visits would have to be on her own nickel. After all, you and your family are providing more care on a regular basis and other than miscellaneous costs, your mother is not paying for this care.
d. Alternately, to keep peace in the family, pay her out of your own funds (I wouldn't suggest this though) and let it be the last time.
I honestly think that Medicaid wouldn't look kindly at "hiring" a daughter to come visit her mother, regardless of what she does.
I was hoping we could include the airfare cost on the care giving contract so I could be repaid, legitimately. Sis stayed in Mom's apartment while in OH. She is after as much money as she can get and has mentioned lost wages even though it was a holiday weekend. I am too embarrassed to mention the dollar amount she asked for (maybe demanded is a better term). I am willing to use an acceptable/customary rate and tell her she has to settle for that. She has no experience or qualifications in the field of which I am aware.
I need to wait to get all my facts and thoughts together before I forward the message to my sister.
In a way, thru me, Mom is paying for this care. And basically sister will say she doesn't have a nickel to use to get to OH to see Mom. If Mom is O.K. with paying sister's transportation cost or even a wage, I'm O.K. with it. I'm just trying to figure how to do it legitimately.
My own pocket has been tapped out with the loan for the airfare and other items with the other sister.
Similar to "no" not being an option, neither is "last time". It looks like I will have to consult an attorney. I'll wait a day or two. Maybe someone else will chime in with an idea.
Thanks.
What about an alternative to a visit by your sister? Could you set up a Skype for your mother - either you or your sister who visits regularly could bring it at a specified time/date and connect with your FL sister (assuming FL sister would spring for the cost of her own Skype)?
I'm wondering also if the facility in which your mother resides has any of its own computer connections for the residents? If they do and have the Skype software and equipment, that would be even better.
I don't have any other suggestions on the other issues in your last post at this time other than to agree to let the issues sit for a few days while you collect your thoughts. It sounds as if this is a situation for which you really want a solid plan going forward.
This is not an unusual situation. You could write up a contract and have everyone sign that this was a care expense (having it notarized) but it may or may not be legal in the end. Other than an by using a qualified attorney, I'm not sure how you can guarantee that it will be. However, as you suggested, a social worker may know of a form that you can use or have other suggestions.
While in the end you may not be able to go back, you could pay this and hope that Medicaid would accept this as an explanation down the road. But be prepared to pay it back if they don't.
You sound wonderful and clear headed so I know that you'll consider these expenses in the future, anyway. It's simply too bad that your sister expects to be paid since your aren't being paid for what you do.
Please let us know how you handle this. We're always interested in answers that may help another member of the community.
Take care,
Carol
Good luck,
Carol
These are generally the ones who are the most active in their field, speaking, presenting seminars, etc. I've worked for a few who aren't very reputable so you need to be sure you get a good one.
The bar association for the county in which you live, or a larger county, may also be able to provide you with this information.
Ask about rates - some will prepare documents for a flat fee; others charge by the hour.
Thanks guys. I think I got it. I'll call the attorney about 50 miles to the north. He is the only one with the word Medicaid on his website out of about 20-25 so far.
.
Ismiami, the recent visit was somewhat urgent as Mom was just released from 8 days in hospital. Sister did stay with Mom so no hotel or rental car. Sister says she has no money to save up for this type of thing.