As a U.S. attorney who has drafted hundreds of caregiver contract agreements for families and private home care clients over the past 12 years, I know that a clear, written live-in caregiver contract is one of the most important steps you can take to protect both the care recipient and the caregiver — especially when the caregiver is a family member.
A well-drafted personal care agreement (sometimes called an elder care agreement or family caregiver contract) prevents misunderstandings, supports Medicaid eligibility planning, establishes fair compensation, and provides crucial documentation for tax purposes. Below, offer my completely free caregiver contract template (updated for 2025) along with detailed guidance on how to customize it for in-home care, live-in arrangements.
Download the Free Live-In Caregiver Contract Template Here:
Download Free Caregiver Contract Agreement (Word .docx)
Download Free Caregiver Contract Agreement (PDF)
Important Disclaimer: This template and article are for informational purposes only and do not constitute legal or tax advice. Laws vary by state. Always consult a licensed elder law attorney and tax professional in your state before finalizing any personal care agreement.
A caregiver contract or personal care agreement is a written contract between a care recipient (or their legal representative) and the person providing in-home care services. It spells out duties, work schedule, compensation, room and board value (for live-in caregivers), termination conditions, and other essential terms.
According to the IRS, payments under a legitimate personal care agreement are generally deductible as medical expenses on Schedule A (see IRS Publication 502) and may qualify as excludable from the caregiver’s taxable income if structured correctly under a “household employee” or “qualified personal care services” arrangement.
More importantly for Medicaid planning, a properly drafted agreement helps prove that payments to a family caregiver are for services rendered — not gifts — which prevents those transfers from triggering Medicaid’s 5-year look-back penalty (42 U.S.C. § 1396p(c)).
Based on hundreds of agreements I’ve prepared, here are the essential clauses:
| Section | Why It Matters |
|---|---|
| Parties & Effective Date | Clearly identifies care recipient and caregiver |
| Scope of Services & Schedule | Detailed list of ADL/IADL assistance; defines “on-call” vs. “sleep time” for live-in |
| Compensation & Payment Schedule | Hourly rate or monthly flat fee + fair market value of room & board |
| Room, Board & Utilities | Critical for tax and Medicaid documentation (use IRS fair market rental value |
| Time Off, Sick Leave & Holidays | Prevents burnout and FLSA disputes |
| Termination Clause | Notice period and conditions |
| Confidentiality & HIPAA Acknowledgment | Protects health information |
| Independent Contractor vs. Employee Status | Most family agreements treat caregiver as household employee (Form SS-8 guidance) |
Below is the exact text you can copy into Word or use the downloadable version above.
Date: [Insert Date]
Care Recipient: [Full Name], residing at [Address] (“Client”)
Caregiver: [Full Name] (“Caregiver”)
Relationship (if any): [e.g., Daughter, Non-Relative, etc.]
RECITALS
The Client requires assistance with activities of daily living due to age-related frailty / [diagnosis]. The Caregiver is willing to provide personal care services in the Client’s home on a live-in basis. The parties wish to formalize this arrangement in writing for clarity, tax, and potential Medicaid planning purposes.
1. Services Provided
Caregiver shall provide the following services (check all that apply):
□ Bathing, dressing, grooming
□ Meal preparation & feeding
□ Medication reminders
□ Toileting & incontinence care
□ Mobility assistance & transfers
□ Light housekeeping & laundry
□ Transportation & errand running
□ Companionship & supervision
□ Other: ___________________________
2 Schedule
Caregiver shall reside in the Client’s home 7 days per week. Caregiver is entitled to at least 8 hours of uninterrupted sleep per night and [X] private days off per month. All other time is considered “on-duty” unless specific breaks are scheduled.
3 Compensation
Client shall pay Caregiver $[Amount] per [week/month] for services, plus the fair market value of room and board estimated at $[FMV Amount]/month (supported by attached appraisal or local rental data).
Payments shall be made [weekly/bi-weekly/monthly] via [check/direct deposit].
4 Term & Termination
This agreement begins on [Start Date] and continues until terminated by either party with [30/60/90] days written notice, or immediately for cause.
5 Independent Contractor / Household Employee Status
The parties intend that Caregiver be treated as a household employee. Client shall withhold and remit applicable payroll taxes or Caregiver shall make estimated tax payments.
6 Governing Law
This agreement shall be governed by the laws of the State of [State].
Signatures
Client: _______________________________ Date: _________
Caregiver: _____________________________ Date: _________
(Full template download includes 12 additional protective clauses, notary page, service log template, and room-and-board valuation worksheet.)
Can use this template for a family member?
Yes — in fact, Medicaid specifically recommends written personal care agreements when compensating family caregivers.
Do need to charge fair market value?
Yes. Paying below-market rates risks the difference being treated as a gift with Medicaid penalty implications.
Can the caregiver be paid from a revocable living trust?
Absolutely. The trustee can sign on behalf of the care recipient.
A clear live-in caregiver contract or personal care agreement brings peace of mind to everyone involved. It protects the caregiver’s income, helps preserve the senior’s assets for Medicaid eligibility, and dramatically reduces family conflict.
Download the free template above, customize it with your specific terms, and have it reviewed by an elder law attorney in your state. The small upfront effort can save tens of thousands of dollars and years of stress later.
Stay safe, and thank you for caring for your loved ones at home.
This free caregiver contract template is provided for general informational purposes only and is not legal advice. Laws change frequently. Consult qualified counsel in your jurisdiction. © 2025 – All rights reserved.