Tuesday, June 23, 2009

Family Care Agreement - Personal Service Contract


We started talking yesterday about our preference to stay in the home as long as possible even when illnesses become more acute. This discussion lead to our current topic, the family care agreement or personal service contract.

The family care agreement or personal service contract has been a way to address some of the issues that arise regarding the care of an elderly family member with acute health problems. The family care agreement can cover the services provided by the family member, the fee for the service, and how that fee is paid. Another important issue that can be addressed in the family care agreement is the ownership of the family home. If the parent has to go to a nursing home, can the family home be protected from nursing home costs? In such a situation, the parent’s home could be transferred to any child who resided in the home for at least two years prior to admission to the nursing home and provided care to the parent. It must be demonstrated that the care provided enabled the parent to stay at home rather than have to go to a nursing home.

State and federal government officials are slowly recognizing that home care is much more cost-effective than long term institutional care. Depending on the state, financial or other non-financial assistance may be available for those who choose to remain in their homes despite declining capabilities.

Throughout all states, public and private agencies offer a variety of home care services that may be needed:
- healthcare in the home, either part-time or 24-hour care
- personal care services, such as cleaning, shopping, and cooking
- special services at home, such as meals programs, transportation, lawn care, and home repair
- day care centers for seniors
- financial planning and money management focused on the unique needs of elders
- programs for caretakers to take a periodic break.

A estate planning or elder law professional can help a family work through these issues and come up with an arrangement that might work for everyone or at least extreme frustration.

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