senior living buy in
Hi Terry! Could you explain what the buy-ins (minimum $250,000) are all about at senior living facilities? I have heard they can be nonrefundable. And after handing over the ?deposit? you continue to pay rent while they ?hold? your money.
Love listening to you on WGN,
Terry Says
I think this recent column will help you understand the issues:
https://www.terrysavage.com/continuing-care-retirement-communities/
Key points: EVERYTHING is in the contract — have an attorney read it.
Also, you are not “depositing” this money in a bank; they typically use it to maintain the facilities. AND, if you die or move out, the “deposit” likely won’t be refunded until they can find someone else to make a deposit and take your apartment.
AND, some of these “deposits’ are non-refundable after you start using the care that may be promised in the deal.
All in, this is a very individualized contract by each continuing care community — and part of what you’re looking at is the financial strength of the community — to keep providing promised services, and for eventual (if contracted) future repayment of your deposit.
