courtesy ElderLaw Answers
Are you taking care of a family member and paying for their living expenses out of your own pocket? Some may think getting reimbursed for such expenses can be as simple as writing a check, but hasty actions could have long-term effects on benefits from federal and state assistance programs and have the potential to be viewed as financial abuse.
Federal and state laws are in place to protect the elderly and special-needs population from financial abuse and undue influence. Because government-issued funds must be used according to federal and local law, the use of such funds has strict parameters. As such, monetary payments to caregivers from dependent adults without the proper agreement in place are prohibited under state and federal law and are considered a form of abuse. The consequences of not having a caregiver agreement in place are severe: they could render the patient ineligibile for future benefits from Medicaid or other government-funded programs and could lead to legal action against the parties to whom those funds were given.
To better understand how federal and state laws are applied, here is a case study that exemplifies the importance of protecting yourself and loved ones from misinterpretation of monetary transfers.
For the full article, click here.