When to Consult a Professional

Transitioning to an expensive retirement home requires rigorous planning. You should engage professional help under the following circumstances:

• Before Signing a CCRC Contract: Have an Elder Law Attorney review the residency agreement. You need to know exactly under what conditions you can be forced to move from independent living to a higher tier of care.
• When Liquidating Assets: If you are selling a primary residence to fund a $2 million entrance fee, consult a fee-only Certified Financial Planner to model out the capital gains tax implications and ensure your portfolio can still generate the required monthly cash flow.
• During Tax Season: Portions of your CCRC entrance fee and monthly fees may be deductible as prepaid medical expenses. Kiplinger and the IRS provide strict guidelines on this, and a CPA can ensure you maximize this massive tax advantage.