ask david letters column

(Warning: Typos Intact, Not Legal Advice)

Can a guardian pay themselves or an other family member 20hr to care for them in there own home

My sister took guardianship of my mother, moved her into her house, and started paying either herself or her daughter 20 dollars an hour, she took a total of 23,000.00 in 16 months is this financial abuse or is this legal since she is the guardian. During this time my mom became non- mobile she could not even sit up in her own bed.

Answer: Typically, a guardian is not allowed to compensate themselves, except for a nominal amount usually set by the probate court, typically $35 or $50 per month. However, the guardian may be permitted to hire outside individuals to care for the incapacitated person. In today’s market, $20 an hour is actually quite low. However, the person under guardianship, such as your mother, is still obligated to file tax returns and manage other financial responsibilities, so $20 per hour may not cover all associated expenses.

If a guardian wishes to be paid for providing services, they should petition the probate court for permission, as they are already under the court’s jurisdiction.

None of this directly relates to Medicaid eligibility. Generally speaking, a person named as the guardian or conservator is not allowed to hire themselves as a caregiver. Any payments made for that purpose could be considered a divestment and could subject the individual to a penalty regarding Medicaid benefits.

Consulting with an elder law attorney to ensure everything is done correctly is crucial in these matters, as it’s very easy to violate the rules and jeopardize eligibility.

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