Personal Services Contract
$529 Flat Fee - 5 Business Days
Compensate a family caregiver the right way - at a defensible fair-market rate, with a refund mechanism, honest tax treatment, and structuring that holds up to Medicaid scrutiny.
Get StartedWhat You Get
Family members provide enormous amounts of unpaid care. A Personal Services Contract makes that arrangement formal: the caregiver is paid for real services at a real market rate, and in Medicaid spend-down planning, the payment reduces countable assets without creating a penalized gift. But this is the most closely scrutinized document type in Medicaid planning, and a contract that fails underwriting can cost far more than it saves.
That is why this engagement counsels the care recipient personally - not just the family member being paid - underwrites the hourly rate against actual market evidence and the caregiver's real availability, and builds in the refund and documentation mechanics Medicaid reviewers look for.
- Attorney counseling of the care recipient directly (not solely the family member who will be paid) on the contract's irrevocable financial and Medicaid eligibility consequences
- Fair-market-value underwriting: the rate is justified against real market evidence and cross-checked against the caregiver's actual availability given other time commitments
- Structuring to avoid Medicaid transfer-penalty exposure under 42 U.S.C. §1396p(c) and Fla. ESS Policy Manual §1640.0606 - including a refund-of-unearned-amount mechanism if the recipient dies or is institutionalized before services are fully rendered
- Self-dealing screen and safeguards if the caregiver also holds the recipient's Power of Attorney (Fla. Stat. §§709.2114, 709.2116, 709.2202) and elder-exploitation exposure review (Fla. Stat. §825.103)
- Accurate tax disclosure: compensation is ordinary income to the caregiver, with self-employment tax analysis and a coordination recommendation with your accountant
- Services log requirement so services actually rendered can be documented if challenged
How It Works
Complete the Questionnaire
Care recipient details, the caregiver's availability and other commitments, actual care needs, proposed hours and rate, and any fiduciary roles the caregiver already holds.
Pay Flat Fee
Submit payment online for the $529 fee. Funds held in trust until your work is delivered.
Attorney Counseling and Underwriting
An attorney personally counsels the care recipient, underwrites the rate against market evidence and the caregiver's availability, and drafts the contract.
Receive Your Contract Package
Contract, rate justification memorandum, and services log template delivered in 5 business days.
What's Included
Deliverables
- Personal Services Contract (PDF and Word)
- Fair-market-value rate justification memorandum
- Services log template for ongoing documentation
Not Included
- Tax return preparation or filing
- Representation at a Medicaid fair hearing if the transfer is later challenged (available as a separate litigation engagement)
- Independent counsel for the caregiver if a conflict requires it (the caregiver must retain separate counsel at their own expense)
Related Services
Protecting assets beyond the spend-down? See the Medicaid Irrevocable Trust. Income over the Medicaid cap? See the Qualified Income Trust. Browse the full catalog at Elder Law Services.
Frequently Asked Questions
What is a Personal Services Contract?
It is a written agreement under which a care recipient compensates a caregiver - often an adult child - for care services. In Medicaid planning, it converts what would otherwise look like a gift (a penalized transfer) into payment for legitimate services at fair market value. Done correctly, the payment is not a transfer for less than fair market value and does not trigger a Medicaid penalty.
Why is this called the highest-risk document in Medicaid planning?
Because Medicaid caseworkers scrutinize family caregiver contracts closely. A lump-sum prepayment based on life-expectancy tables must be underwritten against the transfer-of-assets rules in the Florida ESS Policy Manual (§1640.0606); the rate must reflect real market value; the services must not duplicate what a facility or Medicare already covers; and there must be a refund mechanism if the recipient dies or enters a facility early. A contract missing any of those elements can be treated as a gift - with a penalty period to match. This engagement is built around underwriting those exact points.
The caregiver is also the agent under my Power of Attorney. Is that a problem?
It is a conflict that has to be managed, not ignored. Florida's POA statutes (§§709.2114, 709.2116) impose fiduciary duties on agents, and an agent who signs a contract paying themselves invites self-dealing scrutiny - and, in the worst cases, elder-exploitation exposure under Fla. Stat. §825.103. The engagement screens for this at intake, counsels the care recipient directly, and structures execution safeguards accordingly.
Does the caregiver have to pay taxes on the compensation?
Yes. The compensation is ordinary income to the caregiver, and depending on the arrangement, self-employment tax may apply. The intake asks the caregiver to confirm they will report the income, because Medicaid can request proof of reporting. The engagement includes accurate tax disclosure and a recommendation to coordinate with your accountant; it does not include tax return preparation.
Ready to Formalize the Care Arrangement?
$529 flat fee. 5 business days. Pay online - funds held in trust until delivery.
Get StartedHave questions or a complex situation? Contact us for guidance.
Past results do not guarantee future outcomes. Florida law governs all engagements.