Elder care
My wife and I have taken on the task of caring for her ailing mother. We are paying expenses for her home. She has no assets other than her home. We were advised by our estate planning attorney that we should draw up a ''care agreement'' that would reimburse our expenditures from her estate. Is this a common procedure? How do we go about this?
1 Answer from Attorneys
Re: Elder care
Without knowing the exact facts of the case it is difficult to respond to the specifics. I suggest going back to the attorney that already advised you or, if not satisfied with him or her, find a new one to help guide you. If there are other heirs or beneficiaries of your mother-in-law's modest estate, such an agreement may help provide evidence that you are to be paid before any such distribution. If there are creditors that will have claims (including the state - see below) you will want such an agreement to overcome the argument that your payment of her expenses was gratuitous. If I assume that your mother-in-law is either currently a Medicaid beneficiary or may need Medicaid in the future, then it makes very good sense to have a written agreement in place providing evidence that you are a creditor of her estate (in case the state enacts an estate recovery law - which it may). Also, if you are using her income to assist in paying her expenses but that income is insufficient, you will want to keep good records to substantiate your claim for reimbursement. As far as how to best accomplish this - I am back to the initial advice above and suggest that you seek counsel for that guidance.
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