• What Are The Qualifications For A Senior Living Community?

    What Are The Qualifications For A Senior Living Community?

The qualifications for many communities are based on several factors related to their financial picture. Here are the most common:

Qualifications Considered

Age

The future is unknown. Therefore lifetime projection models rely heavily on historical statistics. Some of which are national and some regional. So, forecasting one’s ability to pay fees depends on how long they’ll live there. depends on the time frame that’s being considered.

The age in which a resident enters the community will be apart of the calculation.

Income

Your income should include all earnings. It’s important to report them because they provide a baseline for paying monthly fees.

  • Stable and ongoing income source – social security or a pension
  • Variable sources of income – dividends and capital gains

Share income sources that you draw annually because they will be taken into account as well. Be certain to include their planned end dates.

  • IRA (Individual Retirement Account) or 401(k)
  • Rental income or a structured settlement

So keep in mind, any type of income that gets reported to the IRS is included in the projection.

Assets

In addition, you’ll want to examine your assets. Typically, only liquid assets are considered for community qualifications. Assets most often include property, savings, and investments.

Assets are important to cover the monthly fees needed as residents move to higher levels of care. Especially if the community is a CCRC.

Most often, proceeds from the sale of the house/condo pay the entrance fee.

Accommodations

Fees may vary widely within a community. Factors that affect the fees include the size and location of the accommodation. Also, influencing fees are the number of occupants in the household. So someone may qualify for several or all of the accommodations. The full scope of your financial landscape will determine the accommodation options.

Know Your Numbers

Finally, take inventory of your current financial situation.

  • Familiarize yourself with your current income streams and assets. Consult your most recent investment statement and tax return. These are key elements to consider along with the entrance and monthly fees.
  • Research your house value. Most counties have a public website listing the house value for tax purposes. Unless you have a committed buyer and signed a purchase agreement, most communities will only use the tax value of your property because it is an objective estimate.
  • Create a lifestyle budget. Most communities include a package of services provided through the monthly service fees. These can vary and are based on the contract type associated with that community. Certainly, ask for a list if one is available.
  • Outside of what services are provided, consider what lifestyle you want. For instance, do you plan to travel every year? Eat out every night? Or purchase the car you’ve always wanted? Listing these expenses out will help you create your lifestyle budget.

Twin Towers is a continuing care retirement community in Cincinnati, Ohio, offering patio homes, apartments, rehab services and more. We’re focused on supporting the vibrant and active lifestyles of our residents so they can age well. For more information, contact Twin Towers online or at 513-853-2000.

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