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Personal Services Contract and Medicaid eligibility?

The purpose of a personal services contract is often to compensate the caregiver for their services, which might include various forms of assistance and care, such as help with daily living activities, household chores, transportation, medical care, and companionship. By having a written agreement in place, the arrangement becomes more formal and helps prevent any misunderstandings or disputes that may arise in the future. The amount of the payment depends on various factors such as the resident’s life expectancy and the services being offered by the caregiver.

Oftentimes, a personal services contract is used as a tool for Medicaid eligibility. Using a Personal Services Contract allows the elderly person to legally spenddown their assets as if there were to just give their adult child/caregiver the money outright it would be considered a gift and for medicaid purposes subject to a penalty.

When creating a personal services contract for elder care in Florida, it is essential to ensure that the document is legally valid and adheres to the state’s laws and regulations. It is recommended that individuals consult with an experienced elder law attorney to draft the contract properly and address all necessary legal elements.


Contact Martha Mendez today by calling 786-636-8938 or by email: [email protected] to discuss your options with respect to durable power of attorney.

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