There are planning opportunities that allow an elder to pay a family member to be their caregiver at home and establish eligibility for benefits. It is a great option for care, but you need to see an elder law attorney to make sure you’re doing it correctly so it won’t affect the elder’s application for Medicaid.
Hi, I’m Wes Coulson and this is your Elder Law Minute. For most people, their first choice of where and from whom to receive long-term care is at home and from a family member. Paying a family member as a caregiver can actually be a very good planning opportunity, but it has to be done right. If it’s done right, the payments to the family member caregiver will be considered by the VA as out-of-pocket care expenses in determining eligibility for benefits. It can also be a good way of achieving Medicaid spend-down. But with Medicaid there’s always a question as to whether it’s a gift or payment for services, and there are some very specific requirements that you need to meet to have it considered the right way. So a good idea, but something where you definitely want to talk to an elder law attorney and make sure it’s done right. Thanks!