It’s important to be aware of the benefits and potential problems associated with this kind of contract before entering in to one. One of the benefits is that this is a legally enforceable guarantee that services provided are based on the elder’s wishes. With these services, it may be possible to maintain an older person in the community longer. Or, if the elder is in a facility, the contract can guarantee better care and oversight by people the elder knows and trusts. A personal care contract does not lead to Medicaid disqualification and no probate costs or gift tax is charged to the elder due to transfer of assets. There are, however, state and federal income tax concerns.  

 

In addition to the tax concerns, problems with the personal care contract can include the abuse of funds by the designated care provider or unintended consequences due to the care provider’s death, illness or other unavailability. There may be liability issues to the caregiver provider due to accident/injury the elder sustains. The elder person’s heirs may be dissatisfied with the arrangements or the arrangement may be investigated by Medicaid authorities.

 

Any person competent to enter into a contract may be the care provider. The elder involved should ideally be able to sign off if it all possible, but if not, there are alternatives.

 

To learn more about the personal care contract come to the Caregiver Chat discussion group on September 14th from 1-3 PM at the Stay Healthy Center in the Oakdale Mall. Al Kukol, Esq., from Levine, Gouldin and Thompson will talk about personal care contracts. He will also discuss when a caregiver may claim a tax exemption or a medical expense deduction for care and support provided to an adult relative. Reservations are required as space is limited. Contact Judy Bobinski at the Broome County Office for Aging to register; the number is 778-2411.