If a family or non-family member will be available to provide personal service to the nursing home patient, then the patient or his/her power of attorney can enter into an agreement for remuneration (money) to the person providing the service. The agreement must be for no longer than the life expectancy of the confined patient. Essentially the agreement pays the average hourly rate for personal service in the geographic area and then pays the entire amount in advance discounted for the time value of money. The personal service provider is required to report the amount as income on their tax return. However, strategies may be available to minimize the tax effect. A competent tax advisor should be consulted.