Continuing care retirement communities have many perks, but there are some aspects that should be taken into consideration before signing a contract. The federal government does not regulate CCRCs, however the Continuing Care Accreditation Commission, or CCAC, does provide accreditation. This private non-profit group reviews the center’s finances, operations and resident well being to determine accreditation.
There is a major financial commitment to signing up with a CCRC, typically in the six-figure range. Many seniors deplete their life savings to become a resident. Because of this, you must make as reasonably sure as possible that the CCRC is financially stable, or risk losing your savings and being without care.
Always have an experienced elder law attorney review any contract for a CCRC before signing, especially when the contract involves a large sum of money up front. Also, your local attorney will know which facilities are good, and which are bad, and can be a valuable resource when choosing a CCRC.
Keep in mind the following when shopping for a CCRC:
- What circumstances are required for a contract to be cancelled?
- Is the entrance fee refundable, and for what period of time?
- Under what circumstances can monthly service fees be raised?
- What services are covered by the fees?
- If you run out of money, does the facility have options, such as benevolence funds or residence assistance funds to protect your ability to stay in the facility?
- If you use those funds, to what extent does that impact your estate?
