CCRC

Investing Strategies Retirement Investing
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I hear this term often although I admit I’m not 100% sure what it is. My parents sold their house and moved into a retirement community. The place required a large “deposit” of 6 figures and then a monthly rent/fee which covered 2 meals a day and heat/ac/water but not tv/internet/phone. The facility also had a rehab center and an assisted living center.

Would a place like that be considered a CCRC?

While it worked out well for them, post death I found a few things that seemed like a money grab although if you sign a contract, it is what it is.

For example after their deaths, you obviously need a few weeks to empty the apartment, then the facility takes another 3 months of rent AND a fee to fix the place up. This literally ran a good $30,000. And to make it worse, you don’t get the deposit back until the exact same apartment is rented again to new residents. This means they may be holding the money for a long time.

Is this typical?

I don’t need the money but it just kind of strikes me as a horribly one sided deal. From my father’s comments when he was alive, I don’t think he realized just how much money would be taken by the facility. Not that it would have changed things much. I"m guessing almost no one would have a contract like this reviewed by an attorney.

Thanks
Rich

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I"m guessing almost no one would have a contract like this reviewed by an attorney.

Thanks
Rich

One thing you can count on when some entity offers you a contract to sign, the terms of that contract are guaranteed to favor and protect the party that drafted the contract. Read carefully and beware.

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I don’t need the money but it just kind of strikes me as a horribly one sided deal.

Absolutely. I’d prefer a month-to-month rental over any kind of arrangement where I’m giving up hundreds of thousands of dollars up front. Once they have your money, you’ll lost your leverage.

intercst

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Ask malaoshi or the Count. Both live in such places.

To my knowledge what you describe is not typical. You do pay a large fee upfront, but a chunk of that is refundable to your heirs. Leases are year to year, so I understand. You can leave anytime with standard lease terms (i.e. you’ll probably have to pay if you leave before lease renewal until they rent out the space again).

1poormom had no issues leaving her old place. Though they didn’t have an upfront fee.

If it sounds shady, pay a lawyer for an hour of his time to review it.

1poorguy

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I googled “What is a CCRC?” and found that the AARP site has a pretty good overview:
https://www.aarp.org/caregiving/basics/info-2017/continuing-…

…it worked out well for them…
That’s the bottom line, isn’t it? How many places have you toured? I suggest you visit a bunch of places before getting all suspicious that your parents didn’t get their money’s worth from this one. Maybe they did, maybe they didn’t, but as someone who’s done eldercare and then investigated almost a dozen places before selecting a suitable (not perfect, none of them is perfect) place to move my dad to, I’m feeling that your understanding of what exactly these places do for their residents is not particularly thorough.

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richnaz: Would a place like that be considered a CCRC?

A CCRC is defined as a Continuing Care Residential Community. In California this is supposed to mean that you don’t have to move to another place if you get sick or need additional care as you age. Your parent’s situation sounds very much like our place near San Juan Capistrano. Yes, we had to agree to return the place to its original condition when we leave (for any reason.) Yes, we pay extra for TV, internet, and phone. I’m not sure the apartment needs to be re-rented before the deposit is refunded. (Note to self: Check this out.)

This is definitely not an eleemosynary institution.

CNC

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eleemosynary

Made me look. Wow, that’s a real word, and one I’d never seen before, despite having read every single one of Dickens’s novels.

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They are now referring to CCRC as Lifestyle Community homes.

I participated in a group wanting ideas about alternative names for CCRC’s. CCRC is a mouthful. That was about 5 yrs.ago. I got $100 bucks and I knew someone who lived in one and they had me on a list of possibles so I did it.

The whole idea is appealing to me….just move once and as I need help, it’s there and they move me to a new section or unit.

The negatives are enclosed community, the positive is the people you don’t like will pass eventually. :slight_smile:

The other negatives are increasing fees and encouraged tipping during the holidays

I reckon it all evens out financially. The biggest risk is management of CCRC can change and my safety and security goes out the window….but maybe then, I won’t know what’s happening.

Life is risk. I’m not at that point yet to move anywhere.

Lucky Dog

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YewGuise: Made me look. Wow, that’s a real word, and one I’d never seen before, despite having read every single one of Dickens’s novels.

I’d like to thank Miss Smith, my 7th grade math (and home room) teacher for learning me that word.

CNC