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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP, make sure you see if the CCRC has any sort of safety net for when people run out of money. I was looking into a few options for my parents, and the communities had a special fund for exactly that. It's one of the reasons I plan on buying into a CCRC when I'm older. I don't want my kids to have to worry about moving me if I outlive my money.[/quote]

My parents CcRC functions like that.  The huge entry fee covers you if you “outlive” your money.  You live for free and they don’t include ss in it.

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You aren't living there for free.  You are prepaying.[/quote]

Yes it’s not free! You pay $1M or so as an entry fee.

We chose to avoid CCRC and pay monthly.

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We only paid ~$400K total for my parents entry into their 5 star facility. Yes, you prepay.  But the fee for service plan is only $120K less and the monthly fee is $2k less.   So yes you "save", about $24K/year and the $120K.   But here are the rates should you need advanced care:

$248/$290/$402 per Day (Assisted living, Memory care, nursing care)

And if you need to go to Nursing care or assisted living temporarily, you would still be paying for your apartment and the advanced care.  So $12K per month for nursing care and you might still be paying $5K/month for your IL apartment.  If either parents ends up in Nursing care, it will only take 3.4 months in a year to pay for the monthly price difference for the year.  
A year in memory care for one parent and the other staying in IL will just about pay the difference in entry fee, and 14 months for assisted living.  So we hedged our bets that we will pay less this way.  Not a guarantee, but highly likely.  Either way, happy to spend the extra $120K up front and the extra $2K /month for the comfort of knowing it wont cost us anything extra ever should 1 or both parents needs advanced care, and that we don't pay extra to keep one in IL apartment either.

The way I view it, the CCRC is most likely making money either way, but we come out ahead by prepaying.  My parents both come from families that live into their 90s+, even with very poor health.  My parents are much healthier than their parents were and they all lived to 90+.  So I can see 5+ years in "advanced care" for one or both of them.  And it will be nice to know they only pay $7K total per month (plus maybe an extra $300 each for food), not $12K+ EACH

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They are running a business.  The business will go bankrupt if all the people got more than they paid.   [/quote]

Obviously!  But we are happy to have my parents spend down all/most of their savings to provide excellent care(5 * life for the last 10+ years of their life).  Sure they are "overpaying" but they are living very nicely (much nicer than ever before in their life) and are well taken care of, even in IL.  I'd rather they spend on that than leave me an inheritance

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