Understanding Your Senior Living Contract
Are you the kind of person who avoids reading legalese or legal contracts at all costs? You aren't alone; more than 80% of people surveyed don't read contracts or agreements as well.
Well, when you are transitioning to a senior living community, you will want to break that habit.
It's a significant decision that often comes with essential contract elements that must be perused with a fine tooth comb.
This document outlines everything from the services provided to the financial obligations of both parties. This makes it crucial for seniors and their families to fully understand contract essentials before signing.
In this guide, we'll walk through the essential contract elements of a senior living agreement so you can make an informed decision.
Living Arrangements and Services
Retirement home agreements should clearly outline the type of living arrangement provided (e.g., private apartment, shared room), and the services included. These senior housing details can range from basic amenities like meals, laundry, and housekeeping to additional care services such as assistance with daily living activities (ADL) and recreational activities.
Pay close attention to which services are included in the base fee and which are considered extra. For example, while basic utilities may be included, additional fees may apply for cable TV, internet, or specialized healthcare services.
Levels of Care and Pricing
Many senior living communities offer different levels of care, such as independent living, assisted living, or skilled nursing. It's important to understand the cost structure associated with each level. Some communities operate on a tiered pricing system, meaning that as the level of care increases, so do the costs.
Ask the following questions regarding levels of care:
- What is included in each care level?
- How is care assessed and adjusted over time?
- What happens if a resident's needs change?
Ensure that you understand how much you'll be charged if additional services or higher levels of care are required in the future.
Entrance Fees and Deposits
Some senior living communities, particularly Continuing Care Retirement Communities (CCRCs), require a large entrance fee or deposit. This fee is often non-refundable and can range from tens of thousands to hundreds of thousands of dollars. In return, residents gain access to a range of services and a guarantee of care as they age.
Make sure you understand the terms surrounding entrance fees, including whether any portion is refundable if you leave the community. Additionally, inquire about what happens if a resident exhausts their financial resources.
Monthly Fees
In addition to any entrance fees, most senior living communities charge a monthly fee. This fee covers your rent, utilities, meals, and various amenities, depending on the community. However, some services may be billed separately, such as:
- Personal care assistance
- Access to off-site medical care
Understand what is included in the monthly fee and whether it's subject to annual increases. Some assisted living contracts include provisions that allow the community to increase rates, often linked to inflation or rising operational costs.
Health Care and Emergency Services
One of the key reasons seniors choose to live in a community setting is access to on-site healthcare, which could be as simple as a registered nurse available 24 hours a day onsite. Your assisted living contract should outline the healthcare services provided, including:
- Medication management
- Emergency services
It's important to know if the community offers these services in-house or if you need to arrange for outside healthcare providers. Also, clarify whether you'll be responsible for covering additional healthcare costs or if some services are included in the monthly fee.
Policies for Transferring or Leaving
There may come a time when a resident needs to transfer to a different level of care, move to a different community, or leave the senior living community altogether. The contract should explain the procedures and financial implications for:
- Transferring to a higher level of care within the same community
- Moving to a different senior living community
- Temporarily or permanently leaving due to hospitalization or other reasons
Inquire about the notice required to terminate the contract and whether any penalties or refunds apply if you need to leave earlier than planned.
Resident Rights and Responsibilities
Every senior living contract should clearly outline the rights and responsibilities of both the resident and the community. These typically include:
- The resident's right to privacy, dignity, and respectful treatment
- Rules and guidelines for community living, such as guest policies, pets, and quiet hours
- The community's responsibility for maintaining a safe, clean, and healthy environment
If there are specific senior living terms that concern you or limit your freedom, address them before signing. Some communities may be more flexible than others in allowing modifications to certain rules.
Dispute Resolution
In the event of a disagreement or dissatisfaction with the care provided, your contract should specify how disputes will be handled. Many senior living communities include an arbitration clause, which means that any legal disputes must be settled out of court through a neutral arbitrator.
Make sure you understand how the community handles complaints and concerns, and consider consulting with an attorney if the contract includes an arbitration clause.
Consulting Legal and Financial Experts
Before signing a senior living contract, it's wise to consult with professionals who can help you navigate the fine print. An elder law attorney can review the contract to ensure your rights are protected, while a financial advisor can help you understand the long-term financial impact of the agreement.
These experts can also help you plan for potential future costs, such as higher levels of care or inflationary price increases.
Essential Contract Elements - Peruse Through Them With Care
You only have to spend time going through the essential contract elements once and that's before you move to your new forever retirement home. Then you are good to go.
So make sure you go through them with the care that it requires or hire a lawyer to help you with the same.
In Zanesville, OH, Clay Gardens Place Assisted Living is the best-assisted living community you will find. We offer individual care plans to all our residents. Schedule a tour to see all the senior housing details for yourself.