As part of the Elder Care Journey as we call it, many of our clients will eventually need in-home-care. Our clients want to stay at home but will need help with various activities of daily living, such as eating, bathing, dressing, ambulating and toileting. In fact, our estate planning documents usually confirm an intent to remain home for care for our clients, and an intent to return home after a stay in a skilled nursing facility. The issue then becomes whether you should hire the in-home-care aide through a home care agency or should you hire the aide directly.
Please keep in mind that the aide who will be helping your Mother for instance, will be coming into your Mother’s home, and will be left alone in the home with her for long periods of time. You should avoid risks regarding the aide as best as you can. Health Care Agencies pre-qualify their aides, and do background checks before hiring. Their aides are also bonded. Most of our clients and their families maintain a better comfort level and peace of mind when they hire an aide through a health care agency.
With regard to proof of spending issues for qualification for Medi-Cal and the VA Aid & Attendance Pension Benefit, the fact that you are using an agency creates a much smoother application process. The agreement you have with the agency and proof of payment to them is usually sufficient proof for Medi-Cal and VA. When cash payments are made to an individual, who may also be undocumented, it is much more difficult to obtain these benefits.
Another issue to be concerned with is the IRS and who does the tax reporting and wage withholding for wages paid to the aide. If you are hiring an aide through an agency, you do not face these additional issues. I am not sure that the IRS would become involved, but you have enough to worry about, dealing with the issues of being older and needing care, without worrying about the IRS.
This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.