June 19, 2006
One relatively recent residential opportunity for older adults is the option to live in an assisted living facility. These are not skilled nursing facilities, like nursing homes, but they do offer residents many more opportunities to live independently. Many assisted living facilities offer independent living in separate units, and some offer the opportunity to live in a larger community-type facility where there are independent apartments. This type of congregate living provides residents the opportunity to share meals and also have other services provided.
An assisted living facility primarily allows a person to live independently with the benefits of having staff available, enjoying the convenience of certain prepared meals, and living in a "community" where there are many other similarly situated elders.
Normally, monthly payments are made to the facility, as well as an entrance fee. Some facilities increase the lump sum deposit for up front expenses, thereby reducing monthly costs. The up front deposit is normally refundable at either a declining rate based on the number of months one stays in the facility, or possibly a flat amount. For example, 90% of the refund may be returned to the resident if he or she leaves at the time that the unit is re-rented. In the event that the resident either moves to a long-term care unit or passes away, the balance of the refund may be sent to family members or a trust, if the beneficiary or designated owner of the deposit is in fact the trust.
Assisted living facilities are normally fully private paid facilities. This means that once a person's funds are totally exhausted, the resident may have to find alternative living arrangements. However, some facilities have endowments...
You may read more at the link below.
by: Hyman G. Darling, Esq.