Elder Law Answers
What Is the Statute of Limitations to Pay Medicaid from a Special Needs Trust?
With a special needs trust that requires Medicaid to be paid back following the beneficiary’s death, what is the sta...
Read moreWhat Are the Consequences of Becoming the Paid Caregiver for a Family Member?
- October 3rd, 2014
Q
My sister-in-law is 61, my mother-in-law is 91. If my sister-in-law leaves her job and becomes the full-time caregiver to her mom, and draws a salary, are there any penalties to the estate?
A
That would be fine if properly structured. There are tax and other employment law issues as well as possible Medicaid implications if your mother-in-law requires nursing home care in the future. The arrangement should be formalized in an employment agreement so that there are no misunderstandings down the road. Your sister will need to report the compensation on her tax return. If the care is ordered by a physician, your mother-in-law should be able to deduct the pay as a health care expense. Given all of these issues, I’d recommend consulting with an elder law attorney or accountant (or both) before moving ahead.
To read more about caregiver contracts, click here.
Local Elder Law Attorneys in Ashburn, VA
Jeffrey Hammond
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
Bethesda, MD
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Jeffrey Hammond
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
For Jeffrey Hammond, the practice of Elder Law is personal. Jeff’s many years of experience in law and in business did not prepare him for the crisis he faced in 2005 and 2006 when his father suffered a stroke and both of his parents suffered from dementia and other medical problems. At that time, Jeff began an i...
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Margaret O'Reilly
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
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Samantha Fredieu
Hale Ball Carlson Baumgartner Murphy PLC
Attorney Samantha Simmons Fredieu is an associate at Hale Ball. Ms. Fredieu graduated magna cum laude from Vermont Law School where she was the symposium editor on the Vermont Law Review, a production editor on the Vermont Journal of Environmental Law, and a member of the Moot Court Advisory Board. She has clerked for...
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