Follow
Share

I live in Ohio. My brother has been working diligently to clean out my dad’s house. Dad is a semi-hoarder. My brother has probably put in over 50 hours so far filling contractor trash bags with pure garbage. I’m my dad’s POA. Can I pay my brother, using my dad’s money, for all of the work he’s been doing? If I had to hire outside help I’m sure it would cost a lot more.

This question has been closed for answers. Ask a New Question.
Find Care & Housing
You can have your brother either incorporate or fill out the form to become a sole proprietor with a clean out business. Then pay him whatever you would pay an outsider, but make sure everything is documented in the form of a contract for services. He will have to declare the money as income but he can deduct his mileage, cleaning equipment and supplies, self employment taxes. And, he can put the money into a SEP IRA and deduct that as well. He should discuss this all with his tax guy to maximize deductions.
Helpful Answer (6)
Report

For my mother we just provided medicaid with the receipts for whatever mom "paid" us. Ie, we took a trip with her and she paid us a third of the cost of gas and hotels and food. So I'd say as long as the brother writes up a receipt for cleaning it would work. Get with the medicaid rep and ask. That's what we did.
Helpful Answer (5)
Report

As far as I know any money given to your brother will be considered a gift in the eyes of Medicaid. Unless your brother has his own business doing this kind of thing. What we did was to pay our family members with CASH ONLY from our father's account and keep withdrawals to a minimum. No checks, etc. No money trail. Good luck.
Helpful Answer (4)
Report

Cwillie is correct. All money given to family, even if in exchange for services, is considered a gift by Medicaid and will be penalized. HOWEVER, if it is first prescribed by a formal contract, taxes withheld, and disclosed to Medicaid at the initial application, it will be excluded rather than penalized.
Helpful Answer (3)
Report

Questionable at best. Consult with Medicaid and an Elder Attorney first.
Helpful Answer (3)
Report

Even if you pay in cash, do they not go through the account; they did with my dil's grandmother and good thing she was doing checks to document what she'd done with the money
Helpful Answer (3)
Report

There's probably an actual amount that is allowable by law. Similar to paying the executors of an estate.

I agree with cwillie--make sure it's all documented, esp with Medicaid involved.
Helpful Answer (2)
Report

Have brother prepare and present a bill that mom will pay. The amount charged can be equivalent to what other businesses would charge. He then would have to pay taxes on that amount via a 1099 from mom. Check with either an elder law attorney or CPA on how best to handle it.
Helpful Answer (2)
Report

It would all have to be above board - written contract and brother claiming the income - otherwise I'm pretty sure it would be fine.
Helpful Answer (1)
Report

OhioGal: I'm with the others here, which means you have to be really careful the money for the brother's work is NOT called gifting because Medicaid will deny. Just to be sure, you may want to hire an elder law attorney to draw up the correct document(s).
Helpful Answer (1)
Report

See All Answers
This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter