Caregiving agreements can be excellent vehicles for Medicaid planning (see pp. 94-97 of the 2010 edition of “How to Protect Your Family’s Assets from Devastating Nursing Home Costs: Medicaid Secrets”). I recently came across a very helpful online article that discusses the practicalities of such agreements, here.
Note that in some states, you cannot charge for future care, in a lump sum payment, but in others, it is perfectly legal to do so. Needless to say, you will need an elder law attorney to draft the agreement for you, as the Medicaid rules of your particular state must be carefully followed.
Also, don’t forget there are income tax consequences, so you’ll want to be sure to report the transaction to your accountant.
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