Monday, October 5, 2026

The Private Care Agreement: The Paperwork Behind “I’ll Just Help Mom Out”


A Private Care Agreement (PCA) is one of the most useful and most frequently mishandled tools in aging-in-place planning. Families usually meet it as a single document: pay a child to keep Mom at home, write it down, hope Medicaid later treats the checks as wages instead of gifts. That is not wrong. It is, though,  incomplete.

A trust that takes aging in place seriously does not leave this to a handshake at the hospital. It builds three related pieces in advance, while the grantor can still say what they want:

  • Advanced Directive: A statement of intention about where and how care should be given, and particularly a preference for home or non-institutional care.
  • Compensation: A provision providing compensation rules for the person who actually does the work, or for the person who manages the work.
  • Personal Care Agreement:  Permission and direction regarding establishing a  PCA that coordinates the people around the grantor.

Conflating those three is how families miss the forest. The pay contract is a tree. Staying home, on the grantor’s terms, with the family still speaking to each other, is the forest.

What a Private Care Agreement Is and What It Is Not

In the marketplace, “private care agreement,” “personal care agreement,” “family caregiver contract,” and “personal services contract” all describe a written deal between the person who needs care and the person who will provide it. The caregiver is often an adult child. The contract should name the parties, start before paid services begin, list the work, set hours or a flexible range, fix a rate and a payment schedule, require records, and say how the deal can be changed or ended.

That document is the compensation contract. Medicaid reviewers look at it. Tax agencies look at it. It has to look like work for pay.

In a well-drafted estate plan or revocable living trust, that is not all it is. My trust  purpose clause calls the PCA a memorandum of understanding among the trustee and the people involved in the grantor’s care. It is “not, necessarily, intended as a legal protection against liabilities.” Its job is coordinating people, not just setting an hourly rate and not serving as armor in a later lawsuit.

So the family may need two writings, one that regards compensation, and another that coordinates and governs care and caregiving. My trust provisions, for example,  keep siblings, the trustee, and friends from isolating the grantor or fighting in front of them. A separate, counsel-reviewed compensation agreement, with a start date, a defensible rate, and contemporaneous logs, is what makes the money look like pay. Putting the rate schedule inside the memorandum, or treating the memorandum as if it were a Medicaid contract, is how the structure collapses.


The Aging In Place Connection


Aging in place is the preference to remain at home, with support that scales, rather than treating a facility as the default. A good trust states that preference without decoration: each grantor "intends to remain at home despite a worsening condition, and prefers care in the least institutional setting possible, regardless of cost." When one spouse staying home is not in the other’s interest, the trust tells the trustee to protect the independence of the spouse who can still live independently, and to look for less institutional options for the other.


That paragraph is the caregiving advance directive. It is not a health-care power of attorney and not a living will. Those govern medical decisions. This governs setting and structure: home first, private fiduciaries rather than a court-appointed guardian of the estate, guardianship of the person only for the shortest time safety requires, and authority to pay for the things that make home possible such as modifications, hired help, geriatric care managers, adult day programs, adapted vehicles, and coordination with agents under powers of attorney.


The preference to stay home fails for predictable reasons. One child lives nearby and becomes the default. Another lives across the country. One keeps a job; another leaves work. Nobody writes down what “help” means. Money moves without a paper trail. When a facility finally becomes necessary, years of informal transfers look like gifts.


Carefully crafted advanced directives and trust provisions are how the plan tries to keep that from happening. Intention says what the grantor wants. Compensation says the person doing the work is not the unpaid subsidy for everyone else. The memorandum of understanding or caregiving arrangement says the rest of the family does not get cut out while that work is being done.


For families who do not live nearby, the memorandum is doing organizational work the paycheck cannot do. Long-distance caregiving requires defined roles, travel triggers, communication rules, and a team that includes people on the ground. Technology can handle check-ins. It cannot replace a shared understanding of who is responsible for what, or a rule that the sibling in another state still gets same-day notice of appointments and a right to call without interference.


None of this matters if the house was never titled into the trust. A living trust only controls what has been transferred into it. Funding is not a formality.  Aging-in-Place Planning heightens the importance of trust funding.


Two Compensation Standards — One is More Dangerous


How much does a caregiver get paid, and how is the family protected from a later Medicaid problem?  A thoughtful estate plan or trust offers two standards:

  • Fair Market Value for Services: If the family member was not otherwise employed, or is helping in free time, they are paid what those in-home services would cost on the open market. Local non-medical home-care rates for the actual tasks—meals, transportation, medication reminders, bathing, laundry—are the usual benchmark. A family member who is not bonded, insured, trained, or available around the clock should not be paid as if they were a 24-hour licensed agency.
  • Reimbursement for Sacrifice: If a family member resigns or takes leave from paid work to provide the care, the trust authorizes compensation at not less than the wages and benefits lost. The instinct is decent. One child should not finance the others’ inheritance with a wrecked career.

Sacrifice-based pay is the more dangerous of the two standards.


Medicaid does not price the job the caregiver left. It prices the services documented. A daughter who left a $95,000 position with benefits to provide four hours of help a day has suffered a real loss. That does not make $95,000 a year the fair market value of four hours of non-medical home care. The difference is the part a reviewer can treat as a gift. Full income replacement can sail past any market measure of the hours actually worked. Good intentions are not a valuation method.


A good estate plan, or a well-drafted trust should flag the problem: the amount should be reviewed with an elder-law attorney so that it is reasonable, customary, legally enforceable, and advisable. That review is not optional on the sacrifice standard. It is the difference between making someone whole and handing the state a 60-month look-back exhibit.


A third, often missed line is care management. Arranging providers, watching quality, and running the calendar is work. A thoughtful plan treats it as compensable at market value, and as distinct from hands-on care. Families who pay only the person in the house and ignore the person on the phone are undervaluing the job that keeps the plan from falling apart.


Coordination, Not Liability Armor


A well-crafted plan is inclusive of all parties, and facilitative of cooperation, with consultation on major decisions and the trustee’s final say reserved for real emergencies. Same-day responses. Shared travel and availability. A duty to flag a change in the grantor’s health. A right to communicate and visit during reasonable hours without monitoring. Shared medical, financial, and care information. Notice of appointments the same day they are set. Safety that does not strip driving or firearm rights merely because that would be convenient for the caregivers.

That is a family operating agreement. It is evidence of how the grantor wanted the people around them to behave. It is not a shield. An agreement signed by adults can still be used later to show isolation, withheld information, or who was supposed to call whom. “Not a liability shield” is not the same as “not a document.” It is also not a substitute for the compensation contract. If money will move to a caregiver, that movement needs its own prospective writing, a rate that can be justified, and logs that exist on the days the work was done, not reconstructed after the nursing-home admission.


Anti-Isolation as a Response to Rising Estrangement


Good plans will address isolation.  My trust directs the parties to foster affection and respect, and forbids disparagement and “threats,” defined to include abandonment, disassociation, estrangement, surrender, and non-support, including when those threats are delivered through intermediaries or in the grantor’s presence.


That is not etiquette. Estrangement is no longer a rare family concern. Karl Pillemer’s national survey for Fault Lines found that about 27 percent of American adults reported a current cutoff from a relative, on the order of 67 million people, and that about 10 percent reported a cutoff from a parent or child. Pillemer called it a problem hiding in plain sight. Once the informal social brake is gone, the remaining child is easier to isolate, easier to turn into the only narrator, and easier to position as the only person who “really” cares. Isolation through manufactured conflict is a known pattern in exploitation cases. It is also how a paid caregiver, even a well-meaning one, becomes the gate.


Some people should be excluded from decision-making, financial access or control, and in rare situation, access to a vulnerable family member.  These decisions should be made in advance by the principal (e.g., the parent or grantor of the trust) and should be explicit. 


Writing the prohibition against alienation down before anyone is angry is the family getting ahead of that trend instead of discovering it after the phone has gone quiet. The same instinct shows up later in administration, when grief and money turn old alignments into rifts. Harmony is not a mood. It is a set of rules about information, access, and who does not get to cut the others off.


The anti-isolation language gives the grantor a written defense against the specific tactic, isolation through conflict, that shows up again and again when an older adult still has money and a house.


Advantages


Aside from protecting a senior, the senior's decisions, and the senior's family, planning of this sort has real advantages: 

  • Real work becomes visible: The person who left a job, cut hours, or spent the evenings on care is absorbing a cost. Paying them at a documented rate is usually fairer than leaving one child to subsidize the others.

  • Orientation and Consideration of Services: Home care, companion care, meals, transportation, medication management, caregiver training, resilience training, and household help are the services that delay a facility. The trust lists them because they are the plan.

  • Record-Keeping: The family has writing to point to instead of competing memories of who agreed to what. Payment for documented services at a defensible rate is compensation, not a gift, which matters if Medicaid appears inside five years.

  • Management: Care management can be paid as care management.  Care management can be, in some cases, the most single valuable service, since it ensures the integrity of all other tasks, services, and needs. 

  • Integration: The agreement gives distant siblings a role that is not “write a check and wait for bad news”: communication rights, appointment notice, access to information, a ban on being frozen out.  Rather than making the distant feel more so, and less than, they are invited, integrated and valued, even if the role they can or actually play is limited. 

Disadvantages


None of this runs itself. The compensation piece requires bookkeeping, not a signature and a shrug. Payments are usually taxable income to the caregiver, which means self-employment tax or household-employer obligations if they are treated as an employee. Naming one child as the paid caregiver, however justified, reads as favoritism if the reasoning is not explained while the parent can still explain it. If the paid caregiver receives means-tested benefits of their own, new income can affect eligibility. That is worth checking before anyone signs.


A family relationship becomes, in part, an employment relationship. Warmth can cool when invoices appear.


The agreement cannot restore the career, the marriage, or the school events the caregiver missed. The sandwich problem does not disappear because there is a contract. Distance makes the layers thicker, not thinner.


Limitations: Where These Fail in Practice


Medicaid will not honor a sloppy pay arrangement. The federal look-back generally examines transfers during the 60 months before a long-term-care Medicaid application. Transfers for less than fair market value produce a penalty period. States often start from a presumption that family care was given out of love. To rebut that, the family usually needs a written agreement signed before the paid services begin, specific duties rather than “help Mom,” a rate that can be justified against local market rates, evidence of actual need, contemporaneous logs, and payments that match the contract.


Retroactive contracts are routinely rejected. Lump-sum “lifetime care” contracts priced off life-expectancy tables are high-risk; if the care is never delivered or cannot be valued, the whole payment can be recharacterized. Paying a family member the full rate of a 24-hour licensed agency when they are not providing 24-hour licensed-agency service is a classic failure.


The 2015 New Jersey decision in E.A. v. Division of Medical Assistance and Health Services is still the object lesson. Mother and daughter had a 2006 care agreement with a monthly fee based on a private home-health company’s rate. The daughter took larger withdrawals than the contract allowed and kept no record of the services. When the mother entered a nursing home and applied for Medicaid, the state disregarded the agreement, treated $244,510 as a transfer, and imposed a 936-day penalty. The Appellate Division affirmed: the parties did not follow their own contract, the daughter was not entitled to the agency rate because she did not provide the same full-time services, and the record was too thin to value the work.  


That case is old. The pattern is not. Families still lose on rate, timing, and documentation. Sacrifice-based pay, unreviewed, is how a generous family walks into the same trap with a bigger number.


Other limits are structural. The memorandum cannot keep someone at home after home is unsafe. Cognitive decline, unsafe wandering, two-person transfers, night needs, or caregiver burnout still force a move; when they do, the trustee’s job shifts to choosing an institution with some discipline, not improvising. The agreement cannot stop a guardianship petition. It can show that care and decision-making were already organized. It cannot rewrite remainder beneficiaries; an agent may not use a care contract as a back-door amendment of who takes the residue. Capacity matters. The older adult must be able to enter the compensation contract, or a duly authorized agent must sign within the scope of authority. An agreement signed after incapacity, by someone without clear authority, is an invitation to later attack.


Fair market value is not “whatever the family thinks is fair.” The IRS and the Medicaid agency are not bound by the family’s label. The agreement is evidence. A reviewer can still revalue the services, ignore extra draws, or treat part of the rate as a gift.

How to Use the Structure Without Stepping on the Rake


Put the intention in the trust while the grantor can still participate. Do not wait for a crisis and then paper over the past.


If money will move, execute a separate compensation agreement before the paid work begins. Price the work against local non-medical home-care rates for the services actually provided. If someone left a job, treat wage replacement as a separate, counsel-reviewed decision—not as an excuse to use an inflated aide rate. Assume sacrifice-based pay will be the number a reviewer attacks first.


Keep time logs and payment records from day one. Pay from the grantor’s or the trust’s account on a schedule that matches the contract. Do not take extra draws.


Use a well-crafted trust and the advanced directives therein as the coordination document: who is in the room, how fast people answer, who gets appointment notice, who may call the grantor, what counts as a threat of withdrawal. Do not ask that document to do Medicaid work it was written not to do.


Coordinate both writings with the financial power of attorney and the health-care power of attorney so the people who can write checks are the people the plan assumes will write them.


Review the arrangement when needs change. A contract written only for transportation and meals will not support a later claim for total personal care.


If Medicaid is a realistic path, have an elder-law attorney in the relevant state draft or review the pay contract before money moves. State practice is not uniform. Ohio waiver programs that pay family caregivers—PASSPORT, consumer-directed services, Structured Family Caregiving—are a different pathway. Do not confuse them with a private contract funded from the grantor’s own assets.

Bottom Line

A private care agreement, in the ordinary sense, is how families pay for care without inventing a gift. In a trust or estate plan built for aging in place, that contract is only one of three pieces. The statement of intention says the grantor wants to stay home, and on what terms. The compensation clauses say the person doing the work is not the family’s unpaid infrastructure, and they warn, or should warn, that making someone whole for a lost career is the standard most likely to blow up on look-back or review. The personal care agreement keeps the other people in the grantor’s life from being shut out while that work is being done.
Used that way, the paperwork behind “I’ll just help Mom out” is not a form. It is how an aging-in-place plan survives contact with siblings, distance, money, and time. Used as a single vague contract with an agency rate and no logs, it is how a family buys a penalty period, unwanted tax issues, and family discord.




Friday, October 2, 2026

Protecting a Deceased Person's Identity


At a Glance-

  • Thieves target the weeks right after a death, when no one is watching the accounts.
  • The first steps cost nothing and need no court order: a careful obituary, a secured home, a protected phone line, and controlled death certificates.
  • Credit bureau notices, mail control, and account changes follow as soon as someone has authority.
  • Never "close" a retirement account. Notify the custodian and let the beneficiaries handle the transfer.
  • Keep a log. If fraud surfaces later, it shows the estate acted promptly.

Why the Weeks After a Death Are Dangerous

Identity theft does not end with death. The weeks after a death are among the most vulnerable for a person's personal and financial information. Criminals read obituaries, scan public records, and exploit the delays that come while a family grieves and an estate is organized. A stolen Social Security number, a redirected piece of mail, or an overlooked online account can be used to open credit, file a false tax return, drain accounts, or even attempt a forged deed.

The reason is simple. The victim can no longer watch the accounts or dispute charges, and the family is overwhelmed. The longer the gap between the death and the lockdown, the bigger the opportunity. Acting early is far easier than unwinding fraudulent accounts, defending collection actions, or recovering stolen funds later.

Who Has Authority, and When

A fiduciary owes the estate reasonable care, loyalty, and confidentiality. In practice, reasonable care includes prompt, sensible steps to keep the decedent's identity and assets out of a thief's hands.

The catch is authority. A power of attorney ends at death, and so does a guardian's authority to act. After a death, the people who can act are the successor trustee, for assets held in a trust, and the executor, administrator, or commissioner appointed by the probate court.   In Ohio, the court may appoint an executor, an administrator, or a commissioner; the paper is Letters of Authority.  In Missouri, the he court may appoint an executor or an administrator; the court paper is the court paper is Letters Testamentary or Letters of Administration.

If there is a trust, the successor trustee should be able to monitor, track, and document activity on the trust's assets right away. If that isn't sufficient, for whatever reason, consider early the appointment of a commissioner, administrator, or executor through the probate court, but seek legal counsel. Common reasons include assets outside the trust, an institution that insists on court papers, and the post office, which forwards a deceased person's mail only for an appointed executor or administrator. 

Until someone is appointed, the family can still do a great deal. The steps below are grouped by timing, starting with the ones that need no authority at all.

The First 72 Hours

These steps need no court order.

  • Write a careful obituary. Leave out the full date of birth, the mother's maiden name, the street address, and other details that answer common security questions. Never publish the home address alongside the service times.
  • Guard the home during services. Burglars watch for funerals and visitations. Have someone stay at the house.
  • Secure the residence. If the home will be vacant, tell the insurer, because many policies limit coverage after a period of vacancy. Remove valuables and papers, change or add locks, use timers and outside lighting, and consider cameras. When the house is listed for sale, avoid lockboxes that hold keys.
  • Collect the wallet, checkbooks, and cards. Lock them up. Note who else had access to cards, keys, or passwords, such as caregivers, cleaners, or relatives.
  • Keep the phone line active. The decedent's cell number often receives the login codes for bank and email accounts. Keep paying the bill, and ask the carrier for a port-out PIN or number lock to block SIM-swap theft.
  • Secure devices, but don't wipe them. Phones, computers, and tablets hold photos, records, authentication apps, and sometimes crypto keys. Wiping them can destroy estate property. Store them safely until the contents are preserved and the fiduciary approves.
  • Control the death certificates. Many states print the Social Security number on the certificate. Order only the certified copies you need in a single request, and have them delivered to the funeral home or the fiduciary rather than to an empty house. You should request return of the originals, even if mailed, but in the latter case enclose a self-addressed stamp envelope for return.  Keep track of who has one.  Ohio law says the certificate contains the SSN. In practice, copies issued to the general public omit it for five years unless the requester is eligible and asks for it.
  • Confirm that Social Security knows. The funeral home usually reports the death to the Social Security Administration. Benefits are paid a month behind, so the payment that arrives in the month after death must be returned. Don't spend it.

The First Two Weeks

  • Notify the credit bureaus. Write to Equifax, Experian, and TransUnion. Include a copy of the death certificate and proof of your authority. Ask that the file be marked "Deceased – Do Not Issue Credit," and request a copy of the decedent's credit report. Each bureau says it passes the notice to the others. Write to all three anyway, and confirm. Bureaus accept a spouse or an executor; ask whether they will accept a successor trustee.
  • Don't forget the fourth bureau. Innovis will add a deceased statement on request.
  • Ask about a freeze. The deceased notice is the main tool. Some bureaus will also place a security freeze on a decedent's file. Ask.
  • Flag the specialty agencies. ChexSystems and Early Warning Services track checking and savings accounts. NCTUE tracks phone, cable, and utility accounts. Send each a death certificate and proof of authority, and ask for a deceased notation or a freeze.
  • Review the credit reports. Look for unfamiliar accounts and recent inquiries. They may show that fraud is already under way.
  • Take control of the mail. This step needs an appointed executor or administrator. The Postal Service redirects a deceased person's mail only in person, and only with proof of appointment; a death certificate alone is not enough (USPS). Ask the post office about any holds or forwarding orders the family did not request.
  • Sign up for property fraud alerts. Many Ohio counties will email you when any document is recorded under a name you enroll, including Franklin, Summit, and Stark. Enroll both the decedent's name and the trust's name. Check with your county recorder or fiscal officer.
  • Cancel the driver's license and passport. Surrender the license or state ID to the BMV so a duplicate can't be issued. Mail the passport to the State Department with a copy of the death certificate to cancel it.
  • Cancel automatic payments. Stop subscriptions, automatic payments, and recurring transfers that are no longer needed.

The First 90 Days

Most of these steps need formal authority.

  • File Form 56. IRS Form 56 tells the IRS who the fiduciary is.
  • Handle joint accounts correctly. A joint account with survivorship belongs to the survivor. Retitle it in the survivor's name; it does not go to the estate.
  • Retitle estate and trust accounts. Individual accounts with no beneficiary designation move to the estate or the trust. Ask each institution to mark the decedent's records "Deceased."
  • Do not close retirement accounts. IRAs, 401(k)s, and annuities pass to the named beneficiaries. Cashing one out can trigger all the income tax at once and wipe out the beneficiaries' options. Notify the custodian, and let the beneficiaries handle the transfer. Investment accounts should generally be transferred, not sold in a hurry.
  • Close the credit cards. Close individual credit cards, ask that each be marked "Deceased," and destroy the cards.
  • Notify insurers, pension plans, and annuity companies.
  • Notify other agencies as needed. These include the Department of Veterans Affairs, professional licensing boards, and, where relevant, U.S. Citizenship and Immigration Services. Voter rolls are usually updated from death records; contact the board of elections if they aren't.
  • Secure the online accounts. Email is the gateway to password resets. Keep the main email account open only as long as it is needed for login codes, then close it. Change passwords and turn on two-factor authentication for any account that must stay open during administration, and close the rest. Memorialize or remove social media profiles; public profiles supply personal details and photos thieves use. For more, see my articles on digital assets in your estate plan and the digital assets inventory instructions.

Through the First Year

  • File the final return promptly. A filed return is the best defense against a fraudulent refund claim. If the IRS rejects an e-filed return because the Social Security number was already used, file on paper with Form 14039, the Identity Theft Affidavit.
  • Watch the IRS mail. Look for notices about returns no one in the family filed.
  • Review medical statements. Check Medicare Summary Notices and supplemental-plan statements for services billed after the date of death. Report them to Medicare at 1-800-MEDICARE.
  • Recheck the credit reports. Pull them periodically for at least a year.
  • Report fraud quickly. If fraud surfaces, report it at IdentityTheft.gov and to local police. Send the creditor a written dispute with a copy of the death certificate.
  • Keep a log. Record every institution notified, the date, the method, and the confirmation number. If fraud surfaces later, the log shows the estate acted diligently.

The free notices above block most new accounts. The tools below add an early warning. Some are free; some are paid subscriptions.


Tools That Watch for Fraud After a Death

Tool What it watches or blocks Cost Who can use it Watch out for
Equifax, Experian, TransUnion “Deceased” notice on the credit file blocks new credit; you can request the decedent’s report Free Spouse or executor; send a death certificate and proof of authority by mail Each bureau says it shares the notice with the others. Write to all three anyway, and confirm.
Innovis Fourth national credit bureau; adds a deceased statement to the file Free Spouse or legal representative; court papers if not named on the death certificate Often overlooked because it isn’t one of the “big three”
ChexSystems and Early Warning Services Checking and savings account applications and history Free Fiduciary with a death certificate and proof of authority No published process for decedents; call or write and ask for a deceased notation or a security freeze
NCTUE New phone, cable, and utility accounts Free Fiduciary with a death certificate and proof of authority No published process for decedents; ask for a freeze
County property fraud alerts (for example, Franklin, Summit, Stark) Emails you when any document is recorded under a name you enroll Generally free Anyone; enroll the decedent’s name and the trust’s name Covers one county only; people with the same name trigger false alerts
Home Title Lock Monitors title and mortgage records; offers help restoring title after fraud $19.95 a month, or $227.40 a year Homeowners; ask whether it will enroll a property held by an estate or trust Despite the name, it does not lock the title. It alerts. A free county alert may cover the same ground.
EverSafe Flags unusual activity across bank, investment, and credit card accounts, credit files, and real estate Monthly subscription Marketed to older adults, families, and fiduciaries Built for monitoring during life. Confirm it can be used during estate administration before you subscribe.
Bank and brokerage alerts Texts or emails for withdrawals, transfers, address changes, and new payees Free The fiduciary, once the accounts are in the estate’s or trust’s name Turn on every alert type offered, not just the defaults
DMAchoice Deceased Do Not Contact Removes the name from marketing lists, including pre-approved credit offers Free online; $1 by mail Family member or fiduciary Can take up to three months to take effect

Most commercial monitoring services were designed for living customers. Before paying for one, confirm that it will enroll a deceased person's name, an estate, or a trust. Prices and terms are as posted by each provider and may change.

Bottom Line

Families already dealing with grief should not have to become full-time fraud investigators. You don't need to do everything on the first day. Start with the free steps that need no authority: the obituary, the house, the phone, and the death certificates. Then the credit bureaus and the mail. Then the accounts. If the trust can't reach everything, seek a court appointment early rather than late, BUT CONSULT WITH AN ATTORNEY; there are many estates that benefit from waiting six months from the date of death to open.  That's a whole different article.

A focused effort in the first days and weeks prevents the far larger problems that come when identity theft is discovered months later. It protects both the decedent's dignity and the estate's finances, and it leaves a clear record that the fiduciary acted with care.