Follow
Share
Doing this without the elder meeting with an attorney and then having an agreement drawn up by an attorney that’s notarized and more than likely witnessed, looks like you are “self dealing” and in breach of the required fiduciary duties of a POA. You would be signing checks to yourself or transferring $ to you, for work of which you are determining the rate / terms of and under your POA authority to yourself.

It’s self dealing. Terrible bad idea.

Why? Well if this elder has family, or a neighbor or church member or others (like a bank teller) have concerns for the elder, they can easily ask APS to look into a live in caregiver who seems to be “taking advantage of or exploiting a vulnerable elder”. If she needs to see a doctor or has an ER run and any of the staff feels something seem “off”, as they are mandated reporters, so they too can contact APS. APS has very wide authority to do an investigation & unbeknownst to you till they have a determination pretty well sussed out &/or solid case to file criminal charges against you.

You cannot set your own rate to pay yourself. Payment for things like this are based on community standards. If, for your city, agencies charge $28 hr for in home care aide, then it might make sense for you as an employee of the elder to get paid $20 hr as less administrative costs, no workmans comp paid, no health insurance paid etc. But if it’s $18 hr, then $10 hr makes sense. Most States Medicaid In Home programs pay State set minimum wage plus abt 20%, as this type of work is viewed as low skilled type of position. If you were a degreed licensed RN and they make $50 hr for in home in your State, maybe then you could bill an equivalent rate, otherwise it’s excessive & bs.

Also be aware of the tax implications on her paying you…. This is 100% taxable income for you. Under IRS rules you are NOT considered contract labor but are a household employee. Again 100% TAXABLE INCOME. The elder or the property owner are responsible for filing FICA and issuing you a W-2. IRS is real sticky about this. APS investigation tend to contact both IRS and SSA if they find areas of concern. SSA one morphs into her SS income then needing to be under representative payee status. If you have an APS investigation, you are basically toast on being allowed to rep payee. Either family member is found or it is placed on whatever systems your State has for limited conservatorship.

and if she gets to the point that her level of care should be done for her own safety, health and security in a facility like a NH, and she files for LTC Medicaid, that $ paid will surface as it’s a standard 5 yr lookback for most States; and unless there is a valid caregiver agrees done, it looks like she gifted all that $ to you and she will have a transfer penalty placed so will not be LTC Medicaid eligible. And the caseworker - as they too are mandated reporters- have to contact APS if they find concerns.

again terrible bad idea to do this and to continue on this path. She needs to herself speak with an elder law attorney.
Helpful Answer (1)
Reply to igloo572
Report

No, unless the DPOA stipulates it. Or, the person you are caring for is competent and willing to pay you. Then, for Medicaid purposes, the agreement should be written by a lawyer, witnessed and notarized. IMO its a conflict of interest to be paid if the one doing the caring is also the POA.
Helpful Answer (1)
Reply to JoAnn29
Report

DPOA has the right to attend an attorney for expert advise. As you seem not fully to understand this Fiduciary Duty, that is what I would do. You can also learn about record keeping and the meticulous files you will be required to keep. You can learn how to properly sign all checks AS a POA with your principal's name attested to with your signature.
You can get all questions answered.

Read your POA document. It will stipulate whether or not and what you can be paid.
Your document will also explain all powers you have and hold.

You are a live in caregiver. You can create with your Elder Law Attorney (paid for by the principal's funds) a "caregiver's contract" that will stipulate shared living costs, food costs, costs of hiring help for respite and for care, transportation costs, and etc.

After you see the Elder Law Attorney I hope you will update us with all you learned. I was POA and Trustee myself; it is a long learning curve. As you are also the caregiver you will need to understand how to hire in care, and what your duties in that regard are.
Helpful Answer (2)
Reply to AlvaDeer
Report

Ask a Question
Subscribe to
Our Newsletter