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William Rambaum, PA Clearwater & Oldsmar Elder Law Attorney

Our entire family works together to take care of our mother. Can we be paid for the things we do for her?

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The answer is yes, but it has to be done correctly in order to be appropriate for Medicaid purposes. If you apply for Medicaid and you have a personal service contract signed by the parents and signed by the children that authorizes them to do certain work and be paid for it, then Medicaid will honor that contract if it’s reasonable. It can only cover services going into the future.

You can’t cover services you’ve already performed in the past and it has to be a reasonable amount and Medicaid allows money to be moved from the mother to the child to pay for that contract. Before you apply for Medicaid, we would fully pay the contract and then we would apply for Medicaid. Now, there are some income tax ramifications to those payments.

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