What is a caregiver contract?

A Caregiver Contract is a binding employment contract that provides a modest stipend that covers travel costs and other expenses. These are also known as Personal Service or Personal Care Agreements. By legally paying you, mom and dad can reduce their estate and become eligible for Medicaid more quickly. Avoid family disputes though. Manage multiple siblings and their responsibilities. Each should evaluate what they can reasonably do. Put care plans and financial arrangements in writing. Don't second guess the primary caregiver.

Keep in mind that you cannot be paid an inflated rate to accelerate money out of estate. Establish the services you will provide and then call a home care agency and get the equivalent market value. Decide how to be paid -- up front or weekly and whether the money will go into an escrow account. Some long-term care policies may allow payment to family members as well.