Determining Appropriate Compensation for the Caregiver of an Elder

Let’s say that you are named as an Agent under a Power of Attorney for an Elder in Connecticut. What is appropriate compensation for your duties on behalf of the Elder who is the Principal? Even if a family member is the Agent under a Power of Attorney, a family member need not serve gratuitously. What was agreement of the parties (the Elder and the Agent) as to compensation when the Power of Attorney was signed?

The best method is a written caregiver agreement between the parties which is executed before or at the time services of the caregiver are rendered. A written caregiver agreement can establish the determined appropriate compensation between the parties in case the arrangement is later questioned. A written caregiver agreement may also help avoid complications and disagreements between family members over the Elder’s assets. It may also avoid a denial of Medicaid benefits in the future, should the Elder have to enter long term care.

In the case of a caregiver who is a court-appointed Conservator, compensation may vary. If the conserved Elder is not on Medicaid (Title XIX) –the Connecticut Probate Court decides a reasonable fee for Conservator’s services. Conservators should keep records of time spent and description of what was done, even if you do not initially intend to be compensated as caregiver. Where an Elder is or may in the near future be receiving Medicaid assistance – the State of Connecticut usually severely limits rate of pay for Conservator or Power of Attorney.

Whether you are an Elder living with family, or a caregiver who is hosting an Elder in your own home, or living in the home of an Elder, you should give serious consideration to setting up a written caregiver agreement. Dzialo, Pickett & Allen, P.C. is ready to assist you with the right language which best fits your unique situation, and protects your expectations about the arrangement.

-Jeanne Messick, Esq.

Disclaimer: While this blog provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. To schedule a meeting with an attorney, please call one of our lawyers at (860) 316-2741. The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship.