Spending down assets to qualify for Medicaid

What is the name of your state? PA

I am about to employ a nurse to help with the care for my mother. And I had also learned that hiring in-home care is one way to spend down my mom's assets towards qualifying her for Medicaid. So I want to make sure that I keep careful records with regard to paying the nurse.

So far, I've found the following payroll/tax options -- utilize an accountant, a pay service, or pay software. Does anyone have any experience with the whole paycheck and tax issue? And which option would you recommend?

Thank you for any input.

rtremor said:

What is the name of your state? PA

I am about to employ a nurse to help with the care for my mother. And I had also learned that hiring in-home care is one way to spend down my mom's assets towards qualifying her for Medicaid. So I want to make sure that I keep careful records with regard to paying the nurse.

So far, I've found the following payroll/tax options -- utilize an accountant, a pay service, or pay software. Does anyone have any experience with the whole paycheck and tax issue? And which option would you recommend?

Thank you for any input.

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It depends on whether the employee is household help or self-employed.

I hired my dad's caregiver as an employee of the household. So as her employer, we're responsible for handling her payroll/taxes. I've been using ElderCarePay software to do so -- it's been easy and cost-effective. I do have a friend, in a similar situation, who has her accountant handle the details instead. Hope this helps.

rmc_domingo said:

I hired my dad's caregiver as an employee of the household. So as her employer, we're responsible for handling her payroll/taxes. I've been using ElderCarePay software to do so -- it's been easy and cost-effective. I do have a friend, in a similar situation, who has her accountant handle the details instead. Hope this helps.

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The specific duties of a hired nurse verses the duties of a hired caregiver (including a CNA) are like comparing apples to oranges to the IRS and what EXACTLY how the situation is handled. This includes IRS reporting & paying taxes for the hired help. The poster needs to know exactly what are the differences.

A tad off topic, but be sure to pay her burial/cremation expenses now. Find a reputable funeral home and get this done. Make sure the contract is irrevocable so the assets do not count. This way you make sure that your mother is taken care of in the manner which is appropriate.

aanubis said:

A tad off topic, but be sure to pay her burial/cremation expenses now. Find a reputable funeral home and get this done. Make sure the contract is irrevocable so the assets do not count. This way you make sure that your mother is taken care of in the manner which is appropriate.

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My friend who works in a funeral home also said that, when someone prepays their funeral, to make sure that the paperwork does not just say "Estimate" on it. If it says estimate, the funeral home could bill the estate or family for additional costs. (Of course, if the family changes things from what is prepaid, there might be additional costs based on the changes.)

Indiana Filer said:

My friend who works in a funeral home also said that, when someone prepays their funeral, to make sure that the paperwork does not just say "Estimate" on it. If it says estimate, the funeral home could bill the estate or family for additional costs. (Of course, if the family changes things from what is prepaid, there might be additional costs based on the changes.)

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Final expenses are in 3 categories: services (what the funeral home physically does for you) merchandise (something you can put your hand on) and cash advances ( as a courtesy, the funeral home collects and pays other entities on your behalf)

The latter, cash advances, sometimes do require an estimate. Valid examples could include newspaper notices, labor to open and close a grave, hairdresser, death certificate cost, clergy and / or musician honorariums. Think of this as things the funeral home could never control the cost of.

The important thing to find out , in writing, is if the funeral home guarantees the expenses when you pay in advance. That would mean the services and merchandise, not the cash advances. Then you have much less to worry about overall, just the cash advance items.

Just wanted to thank rmc_domingo. We looked into and now subscribe to ElderCarePay. We're finding the software easy to use, and it's not costing us an arm and a leg.

Thanks again for the info!