Hi, You may also want to check if they offer a refund on the payment if the person passes away within a certain amount of time. Some places offer this to appeal to an older demographic. For example, if the person passes away within 2 years the family might get a 50% refund, 25% at 3 years, and then nothing after that. CCRC's can be a good deal, but you need to 'buy in' at a reasonable age to reap the benefits, and make sure that they do offer a complete continuity of care. They can be a good deal for someone that sells their house and uses that money for the buy in and then monthly rent.
I have heard of something similar, once. Essentially, what it amounts to is the purchase of an annuity: you invest what I think most people would consider an enormous-ish amount of money, and the longer you live the better the theoretical return on your investment. In this case, you would purchase the right to be resident indefinitely in the facility, which has a cash equivalent of whatever the rental/ground rent currently is + whatever speculation leads you to believe it might become.
Only, as my sister put it with her inimitable frankness: "she might die [within two years], and then the money would be wasted." For us it never became a practical option anyway.
I wouldn't touch it with a stick unless: You have absolute and well-founded confidence in the provider's reputation. You have obtained reliable professional advice on the terms and conditions. There are ample funds to cover all of the factors which necessarily won't form part of the occupancy contract. The person or the person's family has fall-back options should the whole scheme blow up in your face for unforeseeable reasons.
The primary advantage would be having some of the biggest headaches and nightmares - where to live, what happens if the person's needs change, what if her investments crash, who's to manage her money, what if she goes on forever and the money runs out, what if there's a taxation revolution - off your mind permanently. Unless something goes horribly wrong.
Yes, if like Barb says it's a CCRC community. Meaning they have independent living, Assisted Living and Skilled Nursing. Its set up that the person can live independently then transition into Assisted Living and then Skilled Nursing if needed.
The one near me, once you enter skilled nursing 90% of the downpayment goes towards your care. Once gone, Medicaid is applied for. They are guaranteeing you care for the rest of your life.
Read the contract carefully. My GFs Aunt was still required to pay for her apartment. When she entered the Skilled Nursing after a stroke, her POA was billed for her care. The POA came back and said, no, you have her 90%.
The idea is that you have a place to live forever, from IL to AL to MC or LTC.
I would be very cautious though. I have heard of these places going bankrupt, selling and new owners not honoring contract (how they legally do that is beyond me) and people being moved into the next level of care, against their will to bring in another large buy-in.
You may also want to check if they offer a refund on the payment if the person passes away within a certain amount of time. Some places offer this to appeal to an older demographic. For example, if the person passes away within 2 years the family might get a 50% refund, 25% at 3 years, and then nothing after that. CCRC's can be a good deal, but you need to 'buy in' at a reasonable age to reap the benefits, and make sure that they do offer a complete continuity of care. They can be a good deal for someone that sells their house and uses that money for the buy in and then monthly rent.
Only, as my sister put it with her inimitable frankness: "she might die [within two years], and then the money would be wasted." For us it never became a practical option anyway.
I wouldn't touch it with a stick unless:
You have absolute and well-founded confidence in the provider's reputation.
You have obtained reliable professional advice on the terms and conditions.
There are ample funds to cover all of the factors which necessarily won't form part of the occupancy contract.
The person or the person's family has fall-back options should the whole scheme blow up in your face for unforeseeable reasons.
The primary advantage would be having some of the biggest headaches and nightmares - where to live, what happens if the person's needs change, what if her investments crash, who's to manage her money, what if she goes on forever and the money runs out, what if there's a taxation revolution - off your mind permanently. Unless something goes horribly wrong.
The one near me, once you enter skilled nursing 90% of the downpayment goes towards your care. Once gone, Medicaid is applied for. They are guaranteeing you care for the rest of your life.
Read the contract carefully. My GFs Aunt was still required to pay for her apartment. When she entered the Skilled Nursing after a stroke, her POA was billed for her care. The POA came back and said, no, you have her 90%.
The idea is that you have a place to live forever, from IL to AL to MC or LTC.
I would be very cautious though. I have heard of these places going bankrupt, selling and new owners not honoring contract (how they legally do that is beyond me) and people being moved into the next level of care, against their will to bring in another large buy-in.