In theory, assisted living facilities are places for older individuals to live before a nursing home is considered. Elderly family members can move into such a facility and be able to remain independent. Their family would feel less guilty because in these assisted living facilities, they would have access to medical care and treatment and be able to enjoy an active lifestyle. Some of these communities are so glamorous that they contain a clubhouse or golf course. “Adults only” or “50-plus” is how these facilities are often marketed.
Adult Children Need Not Apply
The term ‘assisted living facility’ is now passé. The new buzz word is continuing care retirement communities. Text “CCRC” for short. These communities are part assisted living facility and part skilled nursing home. The residents live independently. The same access to activities and ability to pursue certain interests and lifestyles are still present. Now, when family members visit their grandparents, they bump into their friends. After selling the family home, all the friends have moved in!
What CCRCs are and What They Cost
The CCRCs are single family homes, apartments, or condominiums for healthy adults. The operative word is healthy. All residents start living independently. As they age and develop medical conditions, they move into the assisted living or nursing care facilities.
Out of all the long-term care options, CCRCs are the most expensive. Entrance fees typically run between $100,000 and $1 million. There are monthly charges, as well, between $3,000 and $5,000 that increase as needs change. There are also additional fees for items such as meal service, housekeeping, transportation, and social activities.
According to the AARP, there are three basis types of contracts for CCRCs:
- Life Care or Extended Contract: This is the most expensive option, but offers unlimited assisted living, medical treatment, and skilled nursing care without additional charges.
- Modified Contract: This contract offers a set of services provided for a set length of time. When that time is expired, other services can be obtained, but for higher monthly fees.
- Fee-for-Service Contract: The initial enrollment fee may be lower but assisted living and skilled nursing will be paid for at their market rates.
Considering a CCRC? Contact Hackensack, NJ Elder Law Attorneys
The first place to start when considering a CCRC is conducting research and visiting the communities. Each of the options should be discussed as well as the long-term financial plan. It is crucial that an attorney review the contract and discuss long-term medical and financial plans, especially what happens when one of the spouses needs a higher level of care or dies.
The Giro Law Firm is a New Jersey and New York law firm located in Hackensack, NJ that handles a wide range of legal matters that affect the elderly and disabled populations, including retirement, guardianship, health care, long term care planning, Social Security, Medicare/Medicaid, among other legal services. To request a confidential consultation, click here or call (201) 690-1642 to discuss your family’s aging needs.