Are you Familiar with Personal Care Contracts?

Personal Services Contract

What is a personal services contract? Essentially, a personal services agreement is a contract between the Medicaid applicant and a designated caregiver for services that are not provided by a skilled nursing home or assisted living facility. These services may include: attending care plan meetings at nursing home, dealing with lawyers, attending appointments with doctors, being an advocate, driving the elder to appointments or even to events for entertainment, and more. The caregiver is usually a family member, such as an adult child, but it can really be anyone, not necessarily with formal caregiving training or experience.

The payment for services under a personal services contract is based on the resident’s life expectancy and is often made to the caregiver in a lump sum payment up front or at the very least a substantial down payment.

Why Use a Personal Services Contract?

If a Medicaid applicant gives $50,000 to their adult child, Medicaid would treat that transfer as a gift and would impose a penalty. However, transferring money as a payment for caregiving services to be rendered pursuant to the terms of a personal-services contract, then Medicaid would not consider the transfer as a gift.

The personal services contract then becomes a useful tool to help the Medicaid applicant legally spend-down their assets to help qualify for Medicaid in a way that would not impose a penalty. Courts have ruled that a properly-drafted and fair personal services contract is not a gift and completely appropriate.

What is a Fair Rate to Pay on a Personal Services Contract?

Here is the formula: Fair Market Value on a Personal Services Contract = hourly rate x estimated hours per week x 52 x life expectancy. But what is a fair hourly rate, Medicaid will not accept an unreasonable amount.

Life expectancy is calculated using the Medicaid’s life expectancy actuarial tables.  The earlier a personal services contract is signed, the better for Medicaid-planning purposes.

Why Sign a Personal Services Contract Before Medicaid is Needed?

The older someone is, the lower their life expectancy. The lower their life expectancy, the less money can be transferred to the care giver. The less money that can be transferred, penalty-free, to a caregiver, the more we need to rely upon other Medicaid strategies that may not allow for as much money to stay in the family.

Preparing a personal services contract as part of pre-planning, instead of crisis planning, allows the individual to lock in a higher life-expectancy rate. This allows more assets to be transferred out of the Medicaid applicant’s name when the time comes to qualify and apply for Medicaid. The personal services contract is drafted to be payable on demand, so no actual money needs to change hands immediately. Money can be transferred to the service provider the day before the elder applies for Medicaid.

Personal Services Contract Restrictions and Risks.

  • There are restrictions and some big risks with personal care contracts.
  • The personal services contract is “executory”, so the caregiving services are to be provided “as needed” to be called in later.
  • The services provided must not duplicate services already being provided by the assisted living facility or nursing home.
  • The personal services agreement does not allow a caregiver to be paid for services previously provided or performed.
  • Once the contract amount is “called in” by the caregiver, it cannot be returned, or Medicaid would count it as a resource available to the applicant.
  • ‍Because personal services contracts are non-refundable, the biggest risk of transferring money to a caregiver need space here is losing control of the asset.
  • The personal representative could take the money and retire.

It is critically important to enter into a personal services caregiving agreement only with someone you trust.

The advocates at Assisted Living Made Simple are here for you. We can assist you and your family in selecting the right living situation to meet your needs. Our advocates are familiar with the assisted living facilities in your area and can guide you in the right direction.  

These blog posts are intended to provide information only and not legal advice. For legal advice contact a qualified elder attorney.

What Actually Goes on at Assisted Living Made Simple?

A Day in the Life at Assisted Living Made Simple

At Assisted Living Made Simple we deal with all sorts of situations each day. Some days we have people in search of medical equipment they can afford, and other days we have families that need help making living arrangements for their loved ones.

Recently we had this sweet lady come in; she just moved here and is living alone in a condo. Her daughter lives and works in Port Orange and she is a little lonely and needed a few ideas. We helped her research all sorts of senior activities in her area and gave her recommendations. Rose worked with her to determine if she was getting her full level of benefits and just talked to her.  We all sat and chatted for quite a while and we have kept in contact with her via telephone checking in on her from time to time. She is very thankful for the calls and we are happy to help her settle in. Some days it is just the little things that can make the biggest difference in a person’s life.

We are advocates for you, give us a call to learn more about our services!

What do I do?

Okay, mom fell and is in the hospital. What am I going to do? I have to work, who is going to take care of dad? I know!I’ll call Assisted Living Made Simple.

Did you know they can help with that? Assisted Living Made Simple can help you with in-home care, respite care, and various other services you may need. Please give them a call today at 386-847-2322, or check out their website at


Happy Labor Day

Why you should call us!

Do you worry about an aging loved one/s? Do you want the BEST care available for them?

If this sounds like something you want/need, PLEASE give Assisted Living Made Simple a call today!

We offer the following services, just to name a few:

  • Personalized tours to facilities with our senior care advisors
  • Walking families through the health-care system
  • Assessing medical, financial, emotional, and social needs
  • Assistance procuring VA benefits
  • Alzheimer’s support groups
  • Out of State family representation with our senior advisors

We are here SOLELY for our community’s seniors and their care by providing a complete senior resource center.

Complimentary Service – 386-847-2322

Why we love what we do at Assisted Living Made Simple

[cs_content][cs_section parallax=”false” style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]In our industry, we work closely with our clients on a daily basis. From the initial point of contact we work expeditiously to help families find a proper Assisted Living Facility. One of the biggest perks of our job is obtaining feedback from grateful clients. We are very thankful to have the opportunity to serve our community members in the search of a permanent residence for their parents, grandparents and relatives. Thank you for placing your heart and trust with us all these years. Our solemn oath is to find a loving, caring, clean and fun environment where our elderly can live out the rest of their golden years. Take a look below at the kind words one of our clients shared with us today…..

“Oh my goodness, I LOVE my job! I just had the nicest lady in here. She is at her wits end with what to do with her sick brother. I sat with her and talked to her, put her mind at ease, passed her information on to get her help, and gave her some very needed equipment. She called me a lifesaver! I almost cried!!! What an awesome start to the weekend!”[/cs_text][/cs_column][/cs_row][/cs_section][/cs_content]

How Assisted Living Made Simple Helps Seniors

As Senior Care Advocates, we at “Assisted Living Made Simple” assist seniors (and their families) in finding the perfect senior living community that meets all their needs: socially, medically and financially. We have been receiving many calls from families who are desperate to find help for their loved ones, but they keep hitting brick walls. Most of the situations involve a parent/s at home who can no longer safely live alone. The senior/s lives in unsafe and sometimes deplorable conditions, but due to our legal system, no one can intervene until an “accident” has happened. This “accident” may cause permanent damage or even result in the death of the senior.

This is totally unacceptable! A person should not have to get hurt before they can receive help; a family should not have to spend thousands of dollars that they don’t have before they are allowed to help their loved one. This is an injustice to our seniors and something must be done to fix this broken system. Our seniors should get the care they need in a safe loving environment where they can have the quality of life they deserve. We can help, call for a free consultation TODAY!!!

Q. How do you know what to look for when Safety and Socialization become a concern?

Once safety is a concern there are many things to consider: Is your loved one taking their medication as prescribed? Are you sure? Is it timely? Are they eating a nutritional meal and drinking enough fluids?
Are the things they use on a daily basis up on the counter tops and not under cabinets? Throw rugs; although they are decorative are they a fall risk? Safety first!

Isolation causes depression and stress which leads to illness. Is your loved one sleeping more than usual, not caring about their appearance? This can be a sign of depression. We all need a purpose. When your loved one is able to share their experiences and days with people their own age they seem to thrive and grow.

Our professional advisors can also help determine if isolation and safety are issues that may need addressing. We are passionate advocates for seniors and their needs by providing a complete senior living resource service.



What is the biggest difference between Nursing Homes and Assisted Living Communities?

Residents in a nursing home require around the clock care and monitoring. They typically live with more complex health care conditions that require the assistance of a skilled nurse. Residents in an assisted living community generally require custodial care. It might be a person who lives with memory loss and isn’t safe living alone. Or an adult with mobility problems who needs a little help transferring from their bed to their favorite chair. Assisted Living Communities are the ‘new’ Nursing homes of the future. To find out more information please give us a call at Assisted Living Made Simple (386) 847-2322 or visit our facility at 629 N Dixie Freeway, New Smyrna Beach.