Before Michael Jackson's death and all the estate planning issues raised by his death, I had been covering the Continuing Care Retirement Communities. Picking back up with it today I will look at the payment options available in those communities.
Another key distinguishing characteristic of CCRC is the refundability of the entrance fee. The four basic types of entrance fee approaches are as follows:
Non- Refundable: The Entrance Fee is non-refundable in the event of the resident’s death. Non-refundable entrance fees are generally lower than the remainder of the Entrance Fee options described below.
Amortized: An amortized entrance fee generally offers the resident or the resident’s estate the ability to recoup a portion of the entrance fee paid during an agreed upon period.
Refundable: The term Refundable entrance fee is typically used to describe an entrance fee that offers the resident or the resident’s estate the ability to always obtain a specific refund amount – as a minimum.
Equity: Though less common, it is another payment option for some CCRC. The Equity approach represents entrance fee refund plans that offer the resident or the resident’s estate the ability to obtain a refund that reflects a portion of the appreciation of the resident’s living unit or apartment.
What are your thoughts regarding CCRCs? We would like to hear from you. Leave a comment or contact us at http://www.ythlaw.com/
Another key distinguishing characteristic of CCRC is the refundability of the entrance fee. The four basic types of entrance fee approaches are as follows:
Non- Refundable: The Entrance Fee is non-refundable in the event of the resident’s death. Non-refundable entrance fees are generally lower than the remainder of the Entrance Fee options described below.
Amortized: An amortized entrance fee generally offers the resident or the resident’s estate the ability to recoup a portion of the entrance fee paid during an agreed upon period.
Refundable: The term Refundable entrance fee is typically used to describe an entrance fee that offers the resident or the resident’s estate the ability to always obtain a specific refund amount – as a minimum.
Equity: Though less common, it is another payment option for some CCRC. The Equity approach represents entrance fee refund plans that offer the resident or the resident’s estate the ability to obtain a refund that reflects a portion of the appreciation of the resident’s living unit or apartment.
What are your thoughts regarding CCRCs? We would like to hear from you. Leave a comment or contact us at http://www.ythlaw.com/
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