Elder law attorneys advising clients with “crisis planning,” where a family member is currently in a nursing home, often have to choose between the use of a personal service contract or a gift and promissory note. Each of these post-Deficit Reduction Act (DRA) techniques has been the subject of a recent judicial opinion. The use of personal service contracts was addressed in Barbato v. New York State, 884 N.Y.S.2d 525 (App. Div. 4th Dept., 2009). The use of the gift and promissory note was addressed in Matter of M.L., 2009 N.Y. Misc. Lexis 2917 (Supreme Court, Bronx Cty). The equities now strongly favor the use of the gift and promissory note.
Personal Service Agreements
The personal service agreement is a contract between a person in a nursing home and a caregiver who agrees to provide care throughout that person’s lifetime, for a current, lump sum payment.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
