Brenton C. McWilliams
Brenton C. McWilliams, Orange Beach Lawyer Attorney

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What is a personal care agreement?

Author: Brenton McWilliams

What is a personal care agreement?

A personal care agreement is an agreement to pay a caregiver. The term is usually used in the context of discussing an agreement to pay someone for caregiver services who traditionally would not expect payment, such as a family member. Gifts to family members, if made during the lookback period, may result in a transfer penalty when an application is made for Medicaid. However, by using a personal care agreement, a family caregiver may be compensated for the time they spend and the services they provide caring for their loved one.

These service agreements are an important way to provide income to a family member who otherwise wouldn’t be able to assist with care and can make homecare more affordable. The Alabama Medicaid Agency closely scrutinizes caregiver agreements and has specific requirements which must be met to avoid a transfer penalty. If you are interested in a personal care agreement and would like to know how I can help, please fill out the form on the contact page or call me direct at (251) 215-9275 to schedule an appointment.