Indecision and Decision – Continuing Care Retirement Communities
If you are approaching retirement or have already arrived you probably have received one – or several – invitations to come to a social and consider a new or established Continuing Care Retirement Community. The choices can be daunting.
When I first began my elder law practice years ago choices were more limited. Today, especially for applicants in the higher income/asset category, it may be difficult to differentiate one from the other. The first choice is whether to move or stay home. The second might be is where.
You might not think of a CCRC agreement as a contract – it is – and the contracts have become more lengthy and complicated over time but with some standardized provisions. You might not have considered having an attorney review it prior to signing but attorneys working in the field, including myself, do this on a regular basis. There is a structure to this. Pennsylvania CCRC’s fall under the jurisdiction of the Pennsylvania Insurance Department which specifies certain provisions and requires the community to provide certain information to applicants. We know what kinds of information will be provided and what the choices are.
The Process of Deciding to Move. Choice matters. I have known clients and friends who reached the decision to move when it became too difficult to climb the stairs at home or when there was too much unused and unnecessary space. Parents often choose to move closer to their children and grandchildren. The decision can be made on a whim or, more often, after a lengthy weighing of alternatives. Appearance and amenities are important. Timing is important. One thing to know is that, under today’s conditions, many clients first sign onto a waiting list with a deposit and do not need to make a final decision until later, sometimes months or even years later when the final decision can be made.
The process of deciding to stay. If you have lived in the same house for all of your married – or adult – life the process of uprooting yourself or you and your spouse, tossing old belongings, sorting through years of collectables, hiring movers, possibly losing nearby friendships and contacts can be daunting. Timing is important too. You want to be healthy enough to move.
The CCRC Agreement. CCRC’s in Pennsylvania fall under the jurisdiction of the Pennsylvania Insurance Department and there are detailed regulations. Providers are required to deliver a “disclosure statement” prior to the execution of a contract or at any time prior to the transfer of money, whichever comes first. The disclosure statement can be very helpful in providing answers to questions regarding the community. A legal review can be very helpful. Typical Agreements begin with an Application Fee followed later with a Deposit and only later the Entrance Deposit/Admission Fee which is sizeable. Communities will want to know the state of your health and the extent of your resources. You want to know whether this will be a good “fit”.
Significant Issues to Consider.
- Provisions regarding return of entrance deposits and escrow. These can concern whether you change your mind or are unable to proceed before admission or after. Also on death. Many agreements amortize the entrance deposit and return a portion depending on the period of time the person has been a resident.
- How are matters handled if you are unable to pay?
- What additional fees might be charged above the monthly charge? How often might increases be anticipated?
- How is the community governed? Is there participation by residents?
- What is the procedure on moving to higher levels of care? Do you decide or others? Can you hire your own caregivers or do you use theirs?
- If you divorce or remarry are there provisions regarding this and moving to a larger or smaller unit?
- What are the provisions regarding modifications before moving in?
- If you die how long would your estate need to wait before receiving any balance on the admission deposit? Note that often your unit would need to be resold/reoccupied before a refund would be received. This can and has delayed receipt especially when new units are being offered for occupancy. Finally. The Decision. I have met and discussed change with many individuals and couples trying to decide not only whether to move but also when is the best time. Also consider involvement of your financial advisor and estimates regarding cost. The choices are yours. If you need help making decisions, help is available.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.