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Personal Care Agreements

01.06.16 written by

A Personal Care Agreement is an agreement between an elder and a caregiver.  In a number of situations, the caregiver is a family member and the caregiver agrees to perform a number of services for the elder, including but not limited to the following:

  1.  The caregiver agrees to provide the elder with transportation to and from elder’s physicians and dentists appointments, to the pharmacy and other medical providers, and for such shopping as the elder is able to perform;
  2. The caregiver agrees to shop for the elder’s food, clothing, prescriptions, and any other goods that elder shall require if elder is unable to do so;
  3. The caregiver agrees to provide personal assistance with regard to elder’s social, physical, entertainment, hobby, personal hygiene, beauty maintenance, and other personal factors, and shall seek to obtain the services of others, equipment, apparatus, supplies, goods, and wares so these needs and desires of elder are met and so that the residence of elder is kept in an orderly and clean fashion and assured that maintenance has been performed;
  4. The caregiver agrees to provide elder assistance with investments, bill paying, and daily money management,
  5. The caregiver will attempt to secure qualified healthcare professionals, including doctors, nurses, nurses’ aides, therapists, and other healthcare providers to aid in the treatment of elder.

In exchange for Caregiver’s assistance with these items, the elder agrees to pay the caregiver a number of funds each month, which are considered payments for these services.  The amount is determined by agreement between the elder and the caregiver and may be adjusted based on the amount of services which the caregiver is providing to the elder.  Since this is considered a job for the caregiver, the caregiver is required to report this income on his or her income tax returns. 

The use of this type of agreement allows the elder to stay at home and prolong and enhance their independence, quality of care, and quality of life.  These agreements are widely accepted if the elder ever applies for Medicaid so long as they are in writing, and the caregiver is providing for legitimate services for the elder.

Therefore, if you have a situation in which an individual is needs assistance, this type of arrangement may be appropriate.  Please contact your local elder law attorney so that this matter can be discussed in detail.

NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice.

James F. Contini II, Esq.
Certified Specialist in Estate Planning,
Trust & Probate Law by the OSBA
Krugliak, Wilkins, Griffiths & Dougherty Co., LPA
158 North Broadway
New Philadelphia, Ohio 44663
Phone:  330-364-3472
Fax:  330-602-3187
Email:  jcontini@www.kwgd.com

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