Continuing Care Retirement Community (CCRC) Considerations

[harllee]

Thanks! Just looked at it. Nice. Interesting that they ask that you have 2-3 times the entrance fee. I can see having a multiple of the monthly fee but why a multiple of the entrance fee? Probably they all do it but I don't understand it.

I think the 2-3 times the entrance fee requirement is simply to make sure it is unlikely that you run out of money. The monthly fees go up some every year so I guess that want to be sure you have a cushion. They do have a benevolent fund but I am sure they only want it used in extraordinary circumstances like the old ladies over age 100 who have used it in the past. When we got on the waiting list we had to give a financial statement.

I am delaying my Social Security to age 70 to make sure I will have enough income for the monthly fees.

 

[audreyh1]

I think the 2-3 times the entrance fee requirement is simply to make sure it is unlikely that you run out of money. The monthly fees go up some every year so I guess that want to be sure you have a cushion. They do have a benevolent fund but I am sure they only want it used in extraordinary circumstances like the old ladies over age 100 who have used it in the past. When we got on the waiting list we had to give a financial statement.

I am delaying my Social Security to age 70 to make sure I will have enough income for the monthly fees.

Isn’t there some kind of financial requirement - so that someone doesn’t buy into one of these places and then turn around and give the rest of their funds to heirs?

Is that what the 3x entry fee is for?

 

[harllee]

Isn’t there some kind of financial requirement - so that someone doesn’t buy into one of these places and then turn around and give the rest of their funds to heirs?

Is that what the 3x entry fee is for?

Don't know the answer to that question, not really an issue for us as we have no children or other relatives we want to give our money to. I am sure there are some restrictions on getting the assistance from the Benevolent Fund, like you could not give all your assets away and then ask for money from the Benevolent Fund but I don't know the specifics.

 

[audreyh1]

Don't know the answer to that question, not really an issue for us as we have no children or other relatives we want to give our money to. I am sure there are some restrictions on getting the assistance from the Benevolent Fund, like you could not give all your assets away and then ask for money from the Benevolent Fund but I don't know the specifics.

I don’t remember the terminology, but I thought there were often restrictions on gifting after entering a CCRC. Clearly there must be some minimum threshold before restrictions would apply - I would hope. I haven’t looked into this personally.

 

[mamadogmamacat]

My understanding is once one actually enters the facility, then a very substantial fee is required, several hundred thousand dollars in fact for the CCRC's i have looked into. Of course, this is promised to be refunded 90% if one leaves or passes away (refunded to estate/heirs in that case), at least it will be as soon as a new resident for one's cottage home/apt moves in.

For the waiting list, only a modest application type fee is required.

For those in the process, I'm curious as to what age you would suggest for getting on the waiting list?

 

[harllee]

We had to pay $1000 to get on the waiting list which will be credited toward our entry fee (I actually think we get a $2000 credit). Since all the CCRCs in our area have substantial waiting lists we got on the list at age 65. We plan to move in early 70s, assuming our health holds, that seems to be the average age for move ins at this particular CCRC. If we develop any potential health issues we will try to move in earlier. There is a substantial move in fee, exact amount depends on the type and size of the unit you want. There are some large stand alone villas with very large entry fees. We have our name in for a 2 bedroom 2 bath apartment, about the same size as the small house we living in now. The fee is much less for a smaller apartment as compared to a large villa. Since we have no family we want to leave an inheritance to we are going with the option that provides no refund to the estate since that substantially reduces the entry fee. We mainly want to be sure that the 2 of us (or the survivor) has sufficient assets to live on.

The tricky thing about these CCRCs is that you have to be in good physical and mental condition when you move in so you don't want to wait too late. We know a few folks that waited to late and could not get in. You have to pass a physical and a cognitive test that is surprisingly hard but we have been practicing.

We only live a few miles from the CCRC we have chosen and being on the waiting list allows us to go to activities and eating in the dining rooms (there are 3). We know quite a few people there, several go to our Church.

 

[athena53]

Our problem was that Mom had broken a hip earlier and it was dangerous for her to get up in the night. My sister was a slave to her needs for 5 years, and we ended up having 24/7 sitters watching after her which was very expensive. When she passed, she was down to her last $5k in cash.

They must all operate differently. My grandfather was in one and I believe that there was no extra cost for the "Health Center" (their euphemism for the nursing home), maybe because Grandpa was widowed and then he'd move out of the unit and they could re-sell it. He stubbornly insisted on staying in his unit but, like your mother, needed 24/7 sitters because he was frail and forgetful. He finally moved after Mom told him he was running out of money, and didn't last long after that.

 

[bmcgonig]

They must all operate differently. My grandfather was in one and I believe that there was no extra cost for the "Health Center" (their euphemism for the nursing home), maybe because Grandpa was widowed and then he'd move out of the unit and they could re-sell it. He stubbornly insisted on staying in his unit but, like your mother, needed 24/7 sitters because he was frail and forgetful. He finally moved after Mom told him he was running out of money, and didn't last long after that.

They do. No extra cost means that it's a Class A. Class B and C charge extra for nursing home part, but would charge less per month normally.

 

[bmcgonig]

Isn’t there some kind of financial requirement - so that someone doesn’t buy into one of these places and then turn around and give the rest of their funds to heirs?

Is that what the 3x entry fee is for?

It kinda demands that you have nearly a million before you even apply. Many people might not even be close but might have large pensions that can easily handle the monthly cost.

 

[Scuba]

Nationally, the average age of people who move into a CCRC is in the low 80’s. When to get on the waiting list depends on how long the waiting list is at the specific CCRC one wants. There is a very nice upscale CCRC right on the ocean in So CA that currently has a 7-year waiting list for oceanfront units. It depends a lot on economic cycles too. During the recession, many CCRC’s had no waiting lists and were offering substantial discounts on entrance fees and/or monthly fees.

 

[bmcgonig]

Nationally, the average age of people who move into a CCRC is in the low 80’s. When to get on the waiting list depends on how long the waiting list is at the specific CCRC one wants. There is a very nice upscale CCRC right on the ocean in So CA that currently has a 7-year waiting list for oceanfront units. It depends a lot on economic cycles too. During the recession, many CCRC’s had no waiting lists and were offering substantial discounts on entrance fees and/or monthly fees.

Which one is that?

 

[Scuba]

Which one is that?

Carlsbad by the Sea

 

[bmcgonig]

Carlsbad by the Sea

Thanks

 

[bmcgonig]

Carlsbad by the Sea

Having one with an ocean view there would be sweet

 

[Scuba]

Having one with an ocean view there would be sweet

Yes, I agree!