Families can handle Medicaid asset-transfer rules by using formal caregiving agreements for older relatives who need long term care, a law professor says.

LTC agreements increasingly are used to arrange formal payments for the tasks and duties that family members assume when providing in-home assistance for older relatives, according to an article in the Canadian Journal of Elder Law by Richard Kaplan.

Kaplan, who teaches at the University of Illinois law school, says elderly people who no longer can live on their own can use formal LTC agreements to get care from a trustworthy source. In return, he writes, family caregivers can receive remuneration from the senior relative’s assets

A formal agreement avoids triggering Medicaid rules meant to stymie transfers of assets to family members from individuals receiving Medicaid-paid care, Kaplan writes.