Many not-for-profit senior living communities require an entrance fee. Or at the very least, offer an entrance fee option. The entrance fees can be viewed as a membership fee paid as you move into a community. It’s what provides you peace of mind and grants you access to accommodations and services you may need in the future.
Answers to Four Entrance Fee FAQ’s
1. Is it the Same as a Home Purchase?
No. There are a few ownership models outside of Ohio. But most Life Plan Communities (which may also be referred to as Continuing Care Retirement Communities) retain the ownership of the homes. This model helps to preserve your assets during residency. If and when you move from the home, a partial refund of the entrance fee is issued to the resident or their designated beneficiary.
The advantage to the individual is that the community has the responsibility to maintain the property, not you. Freed from homeownership, you won’t ever need to sell a house again. Or worry about real estate market fluctuations.
2. So What Am I Paying For?
Briefly, it’s priority access to the continuum of care, sometimes offered at discounted rates:
- Assisted living
- Nursing care
- Inpatient and/or outpatient therapy
So, you have access to services and any level of care that you may need as you age.
This one-time fee is paid upon entry into the community based on the size and location of the selected accommodation, and the number of people residing there.
Many not-for-profit Life Plan Communities include the assurance that care will be available, even if an individual outlives their financial assets. At Concord Reserve, this is achieved through our Foundation’s Benevolent Care Fund. Therefore, we ensure that if a resident of Concord Reserve has exhausted their resources, they will continue to reside within our community.
3. How Do Most People Pay The Entrance Fee?
Most people use the proceeds from the sale of their house or condo to pay their entry fee although some use savings or liquidate investments.
Timing the sale of a house and paying an entrance fee for your first choice future home in a community can be tricky. To simplify the process, a community may ask for a deposit towards the entrance fee to begin the application process, giving the prospective resident ample time to handle the sale of their current home.
4. Do I Still Pay A Monthly Fee?
Yes. The monthly fee furnishes the comprehensive package of services associated with the level of care in which you live.
Whether you’re looking for the security of an entrance fee or the flexibility of renting, Concord Reserve has options to suit your preferences. To learn more about our new, beautifully appointed apartment homes please give us a call at 440-961-3693.