Continuing Care Retirement Communities in the U.S. have become a staple of everyday living and a common topic of conversation among seniors trying to determine whether they should stay at home or move to an environment specially adapted to provide for their needs as they age.
There is no lack of opportunity to learn generally about communities in the immediate area or in desired new locations including those locations closer to friends and family or those with perceived better climate or amenities. However, for individuals and couples who have lived often many years in the homes where they raised their children the decision whether and when to move has real consequences and is not to be taken lightly. For most individuals and couples it is deciding where he/she/they will live for the rest of their lives. Here are some things to know or at least anticipate before you begin your search.
A CCRC Agreement Is a Contract and Should Be Treated as Such
It is an excellent idea to ask questions in advance and obtain documents to be signed to be reviewed in advance including by an attorney who regularly works in the field advising elder clients and by an experienced financial advisor. Statements by marketing representatives are not, generally speaking, legally binding. You do not want to learn your rights and obligations only after the fact and you want to be prepared.
CCRC’s in Pennsylvania fall under the jurisdiction of the Pennsylvania Insurance Department and there are detailed regulations for providers. The regulations require providers to deliver a “disclosure statement” prior to the execution of a contract to provide continuing care 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 then 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” and what conditions you can expect going forward.
Significant Issues to Consider
Here are some important ones:
• Provisions regarding return of entrance deposits and escrow. These can relate to whether you change your mind or are unable to proceed before admission or after. Also death. Many agreements amortize the entrance deposit and return a portion depending on the period of time the person has been a resident. See below on this. You could wait.
• Important — 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 have your own caregivers or would you use others endorsed by the community?
• If you divorce, marry or remarry are there provisions regarding this and moving to a larger or smaller unit?
• Before you move in, is there provision for you to make changes to the unit?
• 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 — Deciding When Is the Best Time
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.
Here is the “Goldilocks” question. If you are comfortable where you are you might not feel the tug of disposing of years of accumulated belongings (I know people who handle “cleanouts” for a living and refuse to move unnecessary property) and packing for a move. Neighbors and friends may have moved or be close by. Your family might be thrilled to visit at a new location or might be far away.
Another side of the story is waiting too long. If your health deteriorates, you or you and your spouse might not be accepted for admission. You can stay or leave. The choices are yours. If you need help making decisions that affect your future, help is available.
Janet Colliton, Esq. is a Certified Elder Law Attorney recognized by the American Bar Assn and Pa. Supreme Court and limits her practice to elder law, estate planning and administration, retirement planning, Medicaid and special needs, with offices at 790 East Market St., Suite 250, West Chester, 610-436-6674. She is a member of the National Academy of Elder Law Attorneys and, with Jeffrey Jones, CSA, co-founder of Life Transition Services, a service for families with long term care needs.
