This contract is often used in a long term care situation. People who need long term care often have multiple care needs. Also, they are usually not capable of advocating for themselves. They may be physically or mentally unable to do so.
A personal care contract is a contract between the person needing the care and a provider, often a family member. Some personal care contracts are for direct care while others are for oversight. Here is an example:
Dorothy is no longer able to care for herself at home. She has dementia and has been falling. Her daughter, Beth, lives in another state and is only able to visit twice a year. Beth is concerned that no one will visit and assure Dorothy is properly cared for at the assisted living home. Beth’s cousin, Angie, lives close by and could visit regularly. Angie enters into a personal care contract with Dorothy (Beth signs as agent under the POA). According to the agreement Angie spends about 6 hours a week visiting Dorothy, taking her to doctors, making sure Dorothy’s care is sufficient, seeing that her preferences are honored, and communicating back to Beth. Because this is a compensated transfer of assets, public benefits are not affected.
While these contracts can be helpful they can also be tricky. If an arrangement like the above would be helpful to your loved one, we strongly recommend you consult with a qualified elder law attorney.