Rethinking CCRC living

[Jerry1]

Many decades ago I memorized the US presidents & I can still recite the list pretty fast; I don't slow down till I get to JFK because that's where my memory-list ends, & I can only finish by actually recalling each one from my lifetime.

I had a cognitive test where they asked me who the president was and followed up with “and before that”. I got all the way back to FDR before I couldn’t remember the president. I said something like “how did I do”? He said great, I only needed three but I wondered how far back you could go.

 

[harllee]

If 30 is a good score, then whew! I was thinking more might be needed for a passing score.

I have no problem counting back by 7, but harllee's method is too complicated for me. And JoeW's explanation of reciting the alphabet backwards makes my head spin; easier for me just to memorize it. (Guess everyone's mind works in ways that are well-entrenched.) Many decades ago I memorized the US presidents & I can still recite the list pretty fast; I don't slow down till I get to JFK because that's where my memory-list ends, & I can only finish by actually recalling each one from my lifetime.

The only problem with memorizing counting backwards by 7s is that it is not always 7s, sometimes you are asked to count backwards by 8s or 4s etc.

 

[Dreamer]

I would have a hard time reciting the alphabet backwards. I would have to take my time. I always seem to get when did World War II end. I can never remember and have started to look it up before I go to the doctor.

 

[JoeWras]

I can't do the alphabet backwards. I never could. I struggle with waffle and wordle. I ace nerdle, though. Numbers and diagrams are my thing . So are maps. I can navigate by the sun, no GPS necessary.

But words and letters flummox me .

 

[Huston55]

I can't do the alphabet backwards. I never could. I struggle with waffle and wordle. I ace nerdle, though. Numbers and diagrams are my thing . So are maps. I can navigate by the sun, no GPS necessary.

But words and letters flummox me .

Do you have to use sunglasses?

 

[lucky penny]

I was totally joking! My "method" was utter nonsense.

Oh good! - it made no sense to me at all, but math was never my strong point (& neither, obviously, is recognizing a joke!)

 

[JoeWras]

Do you have to use sunglasses?

Only at night.

 

[bmcgonig]

Here’s a good list of CCRC companies considered the Best Places In Aging by employees of those companies.


https://fortune.com/best-workplaces-aging-services-senior-housing-care/

 

[Lewis Clark]

At one visit the Dr. asked FIL what hospital he was in, and he told them.

Doc asked "How do you know that?"

"It's written on your shirt."

When I was in the hospital and given a neurological exam, one question was the day of the week. I pointed out it was written on the status board behind the questioner. She told me seeing and reading the status board was part of the test.

 

[braumeister]

I've been getting progressively more serious about moving to a CCRC as time goes by, and I'v pretty much decided it will most likely be in about five years. Possibly even sooner, but time will tell.

I've done an enormous amount of research online, and have created a top 10 list of places I think would be pleasant, affordable, and worth examining more closely. I haven't actually visited any of them yet, but will probably get to most or maybe all in the next year or so.

My criteria are perhaps a bit different than most, since I don't handle heat very well, so anything in the South is totally out of consideration. Unfortunately, so many good places are in warm climates!

Looking at the OP's question, I have to say that while the cost is considerable, it's not unreasonable when you realize that it essentially eliminates 90% of my concerns about aging and includes an outstanding LTC policy by default.

 

[HarryHawk]

We are preparing to move into a CCRC in MIchigan, I also couldn't handle the heat in the south.

THere will be a significant monthly cost, but it pretty much covers most all reoccurring living expenses.

A big driver with me is that I, and more importantly my wife's medical needs will be taken care of in an environment which we will have both become familiar.

 

[nwsteve]

Looking at the OP's question, I have to say that while the cost is considerable, it's not unreasonable when you realize that it essentially eliminates 90% of my concerns about aging and includes an outstanding LTC policy by default.

While often overlooked in these conversations, CCRC (Type A at least) costs are partially offset by a significant medical deduction on ur federal return--ours is approximately 30%

 

[pacergal]

While often overlooked in these conversations, CCRC (Type A at least) costs are partially offset by a significant medical deduction on ur federal return--ours is approximately 30%

You can write off/deduct 30% your living expenses as medical at CCRC? That is pretty significant.

 

[audreyh1]

You can write off/deduct 30% your living expenses as medical at CCRC? That is pretty significant.

Yes it is. Friends we have living at one are able to do exactly this, because part of their monthly payment is considered as pre-pay for medical care.

 

[youbet]

You can write off/deduct 30% your living expenses as medical at CCRC? That is pretty significant.

It’s primarily the portion of your monthly fee that covers the LTCI aspect of your Type A contract.

 

[PatrickA5]

It’s primarily the portion of your monthly fee that covers the LTCI aspect of your Type A contract.

Who determines that percentage?

 

[youbet]

Who determines that percentage?

It’s not a percentage, it’s a dollar amount. The facility finance team provides it annually for your tax prep needs.

 

[braumeister]

While often overlooked in these conversations, CCRC (Type A at least) costs are partially offset by a significant medical deduction on ur federal return--ours is approximately 30%

That's nice, but with the standard deduction as high as it is now, I don't see any real benefit. Am I missing something?

 

[MichaelB]

That's nice, but with the standard deduction as high as it is now, I don't see any real benefit. Am I missing something?

I don’t think you’re missing anything. When the eligible deduction is 100% of the monthly cost of an assisted living there can be a meaningful tax benefit. When the medical expense is only 20%-30% or so, it’s likely not enough and there’s no benefit or tax advantage.

 

[harllee]

That's nice, but with the standard deduction as high as it is now, I don't see any real benefit. Am I missing something?

A portion of the move in cost in a Class A CCRC is also considered a medical expense. It could be a deduction of $100,000 or more.

 

[audreyh1]

Also, the current high standard deduction may go away in a very few years.

 

[nwsteve]

I don’t think you’re missing anything. When the eligible deduction is 100% of the monthly cost of an assisted living there can be a meaningful tax benefit. When the medical expense is only 20%-30% or so, it’s likely not enough and there’s no benefit or tax advantage.

Certainly, the amount deductible is unique to each individual's circumstances, but we have no problem exceeding standard deduction. With the expense of all our various medical insurances, copays, dental plus CCRC deductions, we easily clear the 25K threshold. Just to be clear the deduction is based on your individual CCRC's monthly fee for operating the property but excludes things like meals, personal services and special events you might attend. CCRC management advised each Jan what portion of our fees are eligible for inclusion for your medical deduction (don't forget, there is also a 7%(?) threshold that only the amount that exceeds 7% of your income is deductible. And the first year, the deduction is sizable since part of your entry fee also qualifies.