What’s What in Medicaid Planning: Personal Service Contract
You may be doing research for yourself or a loved one on Medicaid Planning in Florida. You may have heard about a Personal Services Contract and would like to know more.
A Personal Service Contract is an agreement that Florida Medicaid allows in order for a child to provide services of a personal nature to a parent in an nursing home, for a fee. This agreement is SPECIFIC, must be prepaid, and must be based on the life expectancy of the Medicaid applicant as well as the fair market value of the services.
How or why would you use a Personal Service Contract?
For Medicaid planning purposes, the Personal Service Contract may allow a Medicaid applicant to decrease their assets, which in itself or in combination with other Medicaid planning techniques can often bring an applicant’s assets to a Florida Medicaid benefits eligible level. Furthermore, it can also compensate a child for the work they are already so willing to do for their aged parent.
Medicaid planning is based on policies and procedures set by the Department of Children and Families and the Agency for Health Care Administration. Medicaid planning strategies are based on facts from the DCF’s policy and procedures manual as well as a Medicaid applicant’s assets and/or income.
As is the case with all Florida Medicaid planning techniques, the Personal Service Contract is intricate and/or may not work for you, therefore it is very important to seek Florida Medicaid planning advice from a Florida Bar licensed attorney who specializes in Elder Law and who has the experience with and knowledge of Personal Service Contracts.
*The above information is intended for informative purposes only and is not legal advice. For advice on your specific situation, please contact an experienced elder law attorney in your area.
Image: Pixabay 441408_640