05/02/2025
As we age, finding a living situation that balances independence with access to care and support becomes increasingly important. Life Plan Communities, also referred to as Continuing Care Retirement Communities (CCRCs), are a financially smart retirement living option tailored to the evolving needs of seniors – with value built into the plans.
These communities provide access to a continuum of care all in one place. By choosing a Life Plan Community, residents can protect themselves from the rising costs of long-term care while securing access to care that adapts to their changing needs. With predictable monthly fees and a clear financial structure, Life Plan Communities allow individuals to plan for the future, protect their assets and enjoy peace of mind knowing that both their lifestyle and care needs are accounted for.
Life Plan Community Financial Agreements
All Life Plan Communities require an entrance fee. The differences come in the details of the community’s contract and what the residents get in return for their fees. This article will cover the differences between standard entrance fees and the unique Equity Ownership model.
Standard Entrance Fee Communities
Under an entrance fee model, residents pay a one-time entrance fee when they move in, along with a monthly service fee. This fee secures a place in the community and ensures priority access to higher levels of care, if ever needed. Some communities offer partially refundable entrance fees, which can be returned to the resident or their estate if they are no longer living at the community. The portion of the entrance fee that is eligible for return usually decreases the longer the resident lives at the community.
This model offers predictability, with bundled monthly fees that cover housing, amenities and future care. A standard entrance fee model often appeals to those seeking simplicity and who want to divest themselves of homeownership.
For individuals who prefer a financial investment with more potential to increase in value, the equity ownership model becomes a more attractive option.
The Equity Ownership Model
Under the equity ownership model, residents purchase the residence they live in, which offers a unique advantage: real estate ownership and stakeholder status in the retirement community. What sets this model apart from standard entrance fee communities is that residents gain a tangible asset that may appreciate over time and can be sold. Instead of receiving a partial refund of your entrance fee, your investment has the potential to appreciate, allowing you or your estate to get more back than you put in, not less.
While monthly fees still apply to cover services like maintenance, amenities and community programs, residents often find the overall financial picture to be advantageous.
This model appeals to those who prefer an investment opportunity of homeownership while still enjoying the benefits of a supportive community environment.
Own your retirement future at The Forum.
The Forum at Rancho San Antonio stands out as a senior living option that combines the advantages of homeownership with the peace of mind that comes from access to on-site care. As one of the few retirement communities to offer an equity ownership financial model, The Forum allows residents to invest in their future while enjoying an active, independent lifestyle. With well-appointed residences, exceptional amenities and a focus on wellness and social connection, The Forum is more than a beautiful place to live – it’s a place to thrive socially, holistically and even financially.
If you have questions about unique ownership model at The Forum, click here to read more or contact us today.
