My grandmother was in assisted living for about a year before she and the family decided she should live with me and my mom. Grandma was only in assisted living because Grandpa needed to be there, but he is no longer with us. From a financial perspective, would it be better for Grandma to pay me for being her caregiver in case she later needs to be put in a nursing home, or does it matter? I've heard so many different things about nursing homes, medicare, and medicaid. It's no wonder so many people get confused.
A few things that might be important:
The house we all live in belongs to my parents.
Grandma pays my mom $125 per month to cover her expenses (food, supplies, prescriptions, electric bill, etc.).
I am the primary caregiver.
If grandma is paying for care that keeps her out of a nursing home, that is a legitimate way to use her money without disqualifying her from Medicaid.
Yes, it can be complex sorting through Medicare, Medicaid, assisted living or continuing care facilities. How is grandmother doing? I see from your profile she has mobility issues. Anything else health wise? What type of caregiving does she need? Does she need to be watched 24 hours a day?
If you are young, I wouldn't want to see you become burnt out. If you needed to go back to college or find full-time work, you would be too exhausted to explore either.
Does your Mom do any caregiving for her Mom, or does your Mom work outside of the home? Or is Mom unable to help out depending on her own age? Does your Dad help out or does he work?
Having this contract would be excellent proof where Grandmother's money went in regard to paying a caregiver, when and if the time comes that she needs a higher level of care, such as a nursing home and she needs to use Medicaid to help pay.
https://www.agingcare.com/articles/personal-care-agreements-compensate-family-caregivers-181562.htm