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?
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.
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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.
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.
Good luck,
Carol
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
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.
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.
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.
"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 :-(