A nursing home agreement is a binding contract that typically involves a large amount of money. It is wise to have an attorney review the agreement before you sign it, so you can understand exactly what your rights and responsibilities will be. That can be especially true if you are signing a contract for an aging relative.
In a recent Connecticut case, Judy Andrien signed an admission agreement with a nursing home on behalf of her mother.
Judy signed the contract as a “responsible relative,” and she agreed to pay the nursing home out of her mother’s assets and assist in arranging for Medi-Cal coverage. The contract stated Judy could become personally liable if she did anything that interfered with her mother’s Medi-Cal eligibility, or if she failed to arrange payment to the home from her mother’s assets.
Eventually a dispute arose, and the nursing home sued Judy personally for payment. Judy argued she was protected by a state law that says a nursing home cannot require a third party to guarantee payment as a condition of admission. According to the court, the agreement was valid because it did not directly require Judy to guarantee payment. Judy could still be sued personally for ‘breach of contract” if she failed to live up to her promises to pay the home out of her mother’s assets and assist in obtaining Medi-Cal benefits.
Before you sign any contract with a nursing home, be sure you fully understand what your obligations are and what might happen to you if something goes wrong.
Ms. MacDonald’s practice is limited to Estate Planning, Probate, Elder Law & Trust Administration. Ms. MacDonald maintains her practice in the Santa Clarita Valley at 25115 Avenue Stanford, Suite B-124 in Valencia, California. She can be reached at 661-294-6464.