Protect Assets Using Family Care Agreements
Wednesday, July 8th, 2009
by Douglas L. Kaune, Esquire
Estate Planning & Administration, Wills,
Trusts, Asset Protection, Elder Law
Unruh, Turner, Burke & Frees
Phoenixville, Malvern, West Chester
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069
Family Care Agreements, also referred to as Cargegiver Agreements, have increased in popularity as a result of the more stringent Deficit Reduction Act (DRA) Medicaid gifting rules. These agreements are usually established between an elderly individual who is agreeing to “pay” and the individual or individuals who is/are agreeing to provide continued care and assistance into the future. This agreement, if drafted properly, may allow for a significant portion of the the elderly individual’s assets from being spent on nursing home care. The Family Care Agreement has become a regular planning tool for elder law attorneys in Pennsylvania and other jurisdictions. The payment amount will be subject to income tax so care should be made in making the decision to use this type of planning.
Douglas L. Kaune, Esquire
