Some states require the agreements to be signed by a notary so check your states requirements. This could have negative implications for Medicaid eligibility down the road which we will discuss next.įamily caregiver agreements must be signed by both the caregiver and care recipient. This means that payment cannot be made prior to the creation of the agreement. In some cases a lump sum payment may be made but not all states allow lump sum payments.Īlso, it’s very important not to pay retroactively. Typically the caregiver is paid weekly or bi-weekly as spelled out in the agreement. In other words, the rate of pay should not be set above the going rate for the services provided in the area you reside. It is very important that the rate of pay be fair and reasonable. Having an agreement in writing ahead of time often helps to avoid potential family conflicts down the road as it clearly states who is providing the care and how much they are being paid. It lays out the terms and conditions of employment in writing for which the caregiver will be compensated for providing care. Personal care agreements establish a formal business relationship between the care recipient (employer) and caregiver (employee). This agreement clarifies the relationship between the caregiver and care recipient, establishes clear expectations as to what type of care is to be performed (i.e., personal care, groceries, errands, etc.), spells out when and where the care will be received, and includes details around how much and when the caregiver will get paid. However, the caregiver and care recipient do not have to be related. Typically these agreements are between family members such as an adult child and an elderly parent. In this article I will share a sample family caregiver agreement that you can download and discuss how these could be a win-win situation for both the caregiver and care recipient.įamily caregiver agreements, also called personal care agreements or eldercare agreements, are written agreements between a caregiver and a care recipient. As care needs become greater, its not uncommon for informal caregivers to quit their jobs resulting in a loss of income. They could be providing minimal assistance with activities of daily living, as part of the normal aging process, or more extensive care as was the case with my mom and her battle with MS. Oftentimes, these are adult children caring for an aging parent. More than 34 million Americans served as informal (unpaid) caregivers during the previous year according to the AARP Public Policy Institute.
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December 2022
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