Family Members Providing Care

I had a lady call me today....says she saw some of my posts and wanted to ask me some LTC questions and share some info.

Anyway, to make a long story short, she explained how her husband ( a lawyer) was able to help her disabled friend (stroke victim) who has a Genworth LTC policy, have 100% in home family member care by setting up a LLC that then employed only the family members to provide non-licensed/non-certified caregivers to provide her the care she needed to stay at home.

Apparently Genworth made it difficult to set this up.....for example, they had to be W2 and not 1099...they were all interviewed so there was no secret that it was family member care..but it worked. All the LTC benefits were assigned to the LLC, and the LLC paid the family members. She said, had the husband not been a lawyer, it would have been very difficult to pull this off.

I always tell people that their children can always go to work for the local home health agency if they want to care for the parents, but these people took it to an extreme I guess.

Maybe we don't need MedAmerica after all? ;)
 
I had a lady call me today....says she saw some of my posts and wanted to ask me some LTC questions and share some info.

Anyway, to make a long story short, she explained how her husband ( a lawyer) was able to help her disabled friend (stroke victim) who has a Genworth LTC policy, have 100% in home family member care by setting up a LLC that then employed only the family members to provide non-licensed/non-certified caregivers to provide her the care she needed to stay at home.

Apparently Genworth made it difficult to set this up.....for example, they had to be W2 and not 1099...they were all interviewed so there was no secret that it was family member care..but it worked. All the LTC benefits were assigned to the LLC, and the LLC paid the family members. She said, had the husband not been a lawyer, it would have been very difficult to pull this off.

I always tell people that their children can always go to work for the local home health agency if they want to care for the parents, but these people took it to an extreme I guess.

Maybe we don't need MedAmerica after all? ;)



I read an interesting blog post by an LTCi specialist not too long ago that dealt with this issue:

Can a long-term care insurance policy pay a family member to care for me? « LTCShop.com


nadm
 
I heard that guy makes things up as he goes along.:goofy:

Rick

u r 2 funny.

but, really, yankee, does it make sense to set up an LLC and go through all of that ordeal, just to have a family member paid to provide care.

why not just buy one of the policies with a cash alternative benefit.

Last time I checked, there were 7 different policies that offered a cash alternative benefit or an inexpensive indemnity rider... all of which can accomplish this.

nadm
 
u r 2 funny.

but, really, yankee, does it make sense to set up an LLC and go through all of that ordeal, just to have a family member paid to provide care.

why not just buy one of the policies with a cash alternative benefit.

Last time I checked, there were 7 different policies that offered a cash alternative benefit or an inexpensive indemnity rider... all of which can accomplish this.



nadm


Well......of course it makes sense.....but this person already had purchased a genworth policy and then had a stroke. Her daughter was unemployeed...and the lady wanted the daughter to take care of her in her house. They had no choice. Keeping in mind that GNW is the largest LTC carrier on the planet, lots of people with their policies do not have access to family member care unless they do something like this.
 
Well......of course it makes sense.....but this person already had purchased a genworth policy and then had a stroke. Her daughter was unemployeed...and the lady wanted the daughter to take care of her in her house. They had no choice. Keeping in mind that GNW is the largest LTC carrier on the planet, lots of people with their policies do not have access to family member care unless they do something like this.


great point.
 
Its just the cost of setting up a LLC....the rest is the hassle of filling in the forms and arguing with the LTC carrier. Contact your local CPA for charges I guess.

So in this case it sounds like it was less expensive than purchasing an indemnity type policy.

** Actually just looked that up. In CA looks like for LLC there is an annual tax of $800, plus legal fees to set up, $3,000 to $5,000 for attorney fees.
 
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