The person caring for a loved one can make a considerable sacrifice: quitting a job and providing employment services. A formal agreement between family members may offer the possibility of compensating a caregiver if he or she is no longer able to have another job. Although most family members want to help and feel compelled to take care of a loved one, it is a job with high time obligations and responsibilities. One way to protect the caregiver and the person in care is to document the care relationship. The tasks of the carer must be clearly specified in the agreement, but may, for reasons of flexibility, include the notion of “or something else that must be mutually agreed between the parties”. If the agreement is too rigid, it must be rewritten if circumstances change. This agreement does not include a compensation plan for services already provided. Instead, the payment agreed in the document applies to future services. It is also important that compensation be at a reasonable rate. The rate should not go beyond the fees that a professional concierge would charge. It is recommended to treat the document as a legal agreement that contains the following: if the reference person who is hired is a family member or friend who will live in the same house, there may be tax benefits for the employer.
Simply put, if the caregiver is there to “take care” of the patient and does not devote more than 20% of her daily activities to the patient, the caregiver may not be entitled to a minimum wage. Article I provides a method for designating both the participants in this Agreement and identifying each other`s role in relation to the other. Before we begin, we must document the date of this contract by indicating the month and calendar day of the contract date on the first space and the year on the second space. Full-time caregivers must have a care agreement in their possession in order to protect themselves from conflict, but it can also help ensure that the senior is Medicaid compliant, only in the event that long-term care is to be provided at one time or another by a facility. This agreement can accommodate all the specific details regarding care and, where applicable, standard contractual provisions: things such as a salvatorial clause and a legal provision in force. It`s important that everyone who participates in a personalized care agreement understands what it means for their finances and taxes. In addition, instead of strict clauses, both parties can make changes after an agreement has been reached. You can also assign a backup caregiver if you`re going on vacation or making a commitment.