The Importance of a Personal Services Agreement and Lease When Applying for Medicaid

Two documents that we often prepare in conjunction with Medicaid planning are the Personal Services Agreement and Lease. Both documents can be very important proof for substantiating the money paid to a caregiver, who is often a family member, so that the money paid to the family member does not have to be repaid in order for the Medicaid application to be approved.
Without a Personal Services Agreement or Lease in place, the money paid to a family member for living expenses, caregiver fees, or other expenses could be determined to be a gift that must be paid back before the applicant could qualify for Medicaid.
As a reminder, we suggest that you schedule an appointment with us to assist you in developing a game plan to address long term care and caregiver expenses.  We do not recommend attempting the Medicaid application process before having "all of your ducks in a row."  Don't do it alone; one wrong transfer may disqualify the recipient from receiving Medicaid.