On any given day, there are over 150,000 Floridians receiving home care services. Such care ranges from homemaker/companions to registered nurses, providing services of everything from meal preparation to medical treatment. When structuring an arrangement for long term care, the individual’s environment plays a critical role in their quality of life, as studies have shown that patients recover faster in the comfort of their own homes.

There are a variety of factors that should be considered in order to structure a cost effective arrangement for home care, while both enhancing the older adult’s quality of life and preparing for future medicaid eligibility. Often, when an older adult is in a condition of health that does not require medical nursing care, a family member or friend will assist with personal care. This can become quite burdensome for the relative or friend, who must balance daily obligations with the responsibilities of caregiving. As a result, many have turned to personal care agreements (a.k.a. personal services contacts), allowing the older adult to contract with a relative/friend for services rendered. The caretaker is compensated, the older adult receives necessary assistance, and the payment is considered a transfer of value (not a gift); thus reducing the older adult’s countable assets, and enhancing Medicaid eligibility.

A personal care agreement should specifically address the duties of both parties, and structured in a manner that ensures legal enforceability. The agreement should be in writing, signed before the services are rendered, and the compensation must be reasonable (in comparison to what other third party caregivers are charging for the same services).

A personal care agreement is an excellent tool for older adults who wish to use a family member or friend as a caregiver, while accelerating their Medicaid eligibility. For these arrangements to work effectively, it is very important that the contracts are drafted properly. For this reason, older adults that are looking into a personal care agreement should consult an attorney who is familiar with elder law issues to first determine whether the agreement is appropriate under the circumstances, and to further ensure that it is structured to enhance all potential advantages.

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

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