Payment for services by attorney-in-fact

1. For purposes of determining an individual's eligibility under this chapter, if payment is made by the individual to the individual's attorney-in-fact for services or assistance furnished to the individual by the attorney-in-fact, the department may not treat the services or assistance furnished as consideration for the transferred income or asset unless: a. (1) The payment is made pursuant to a valid written contract entered between the individual and the attorney-in-fact prior to the attorney-in-fact rendering the services; (2) The contract was executed by the individual or the individual's fiduciary who is not the provider or services or assistance under the contract; (3) Compensation is reasonable and consistent with rates paid in the open market for the services actually provided; and (4) The services are necessary and reasonable; or b. The prior course of dealing between the individual and the attorney-in-fact included the individual paying compensation to the attorney-in-fact upon the attorney-in-fact's rendering of services or assistance to the individual, or within thirty days thereafter. 2. Reasonable payments are allowed as a spend-down of assets but not as a deduction from income.