WHAT IT IS:

An agreement between caregiver and the caregivee that states that the caregiver will provide care to the caregivee in exchange for specified compensation.  The agreement would set forth the specific responsibilities of the caregiver, including days and hours of care and the compensation paid for that care.

ADVANTAGES:

PROVIDE FOR YOUR CAREGIVER: Provide compensation to a trusted loved one who may have had to quit a job, forgo job opportunities or otherwise spend considerable time and energy providing care.

AVOID FAMILY CONFLICT: Minimize problems among relatives as to who will provide necessary care and how it will be paid for.

SAVE MONEY: Long term care insurance may provide for such care if there is a formal, reasonable agreement.

TRANSFER MONEY & ASSETS TO A CAREGIVING LOVED ONE AND NOT THE GOVERNMENT- HAVE MEDICAID PAY FOR YOUR FUTURE LONG-TERM CARE NEEDS:

Should an alternate caregiver or nursing home become necessary, all assets of the caregivee will be considered available to pay for that care and Medicaid will not be available until all assets are depleted.

Certainly the care a loved one provides is just as valuable and worthy of compensation as the care provided by a future caretaker or nursing home.

With a personal care agreement the caregivee can provide for his or her caregiving loved one and have Medicaid pay for future long term care costs.

A former Magistrate with the Cuyahoga County Court of Common Pleas, listed in Martindale-Hubbell’s Bar Register of Preeminent Lawyers and AV rated for 15 straight years, Randall M. Perla, joined by his associate Elizabeth L. Perla in 2007, has been providing clients with the highest quality legal representation for over 35 years.

Why Should I Plan?     

Seventy Percent (70%) of people over age 65 will need long term care during their lifetimes.  However, as the average annual cost of a nursing home room in the Cleveland Metropolitan area is $73,912.50, such care can quickly deplete all of your savings. 

Won’t Medicare Cover my Care?

Medicare doesn’t cover long-term care costs.  Even if a number of criteria are met Medicare only covers the cost of a skilled nursing facility for up to 20 days, with the possibility of an additional 80 days on a co-payment basis.  The average nursing home stay is 2.4 years.

What about Long-Term Care Insurance?             

AARP estimates that a 65-year-old in good health can expect to pay between $2,000 and $3,000 a year for a policy that covers nursing-home and home care.  If you can afford to comfortably pay the premiums for the rest of your life then long-term care insurance may be a good option.  However, if you cannot afford the premiums or if you outlive your long-term care insurance coverage, you are likely going to need Medicaid.

What is Medicaid and how will I Qualify?

Medicaid provides free long-term care as long as certain income and resource requirements are met.  However, because Medicaid’s resource limit is so low (currently $1,500) without proper planning, you will have to deplete all your resources before you can qualify.  Moreover, if you are thinking that you can simply give the assets away to a family member or loved one, you may want to reconsider.  For any assets transferred for less than fair market value within 60 months of the time of Medicaid application, there is a penalty period equal to the value of the transfer.  Hence, you could be left without any money or government assistance to pay for the care you need. 

Don’t Despair, Prepare!

There are many planning opportunities available in order to not only preserve as much of your savings as possible for you and your loved ones, but also to improve the financial situation of your spouse should you need long term care.  The earlier you begin to plan the better.

Contacting our office now could save you and your loved ones thousands of dollars should you find yourself in any of the following situations:

You or Your Spouse is Seriously Ill.

You are Considering Applying for Medicaid. 

You Have Been Denied Medicaid Coverage. 

You Live in a Loved One’s Home or are Considering Moving in with a Loved One.

You are Cared for by a Loved One.