Page 77

MA-2240, Transfer of Assets. Q. Continuing Care Retirement Community (CCRC) Entrance Fees A CCRC provides a continuum of care, including independent living, assisted living, and nursing facility care, under a contract for the life of an individual or for a period longer than one year. If the “entrance fees” are non refundable, do not determine fair market value. If entrance fees are refundable count the portion of the fee that can be refunded. Count the entire amount of the entrance fee at the time of application for institutional services when all of the following conditions are met: 1. The entrance fee can be used to pay for care under the terms of the entrance contract, either in portion or full lump-sum refunds, should other resources of the individual be insufficient; and It is unnecessary for CCRCs to provide a full lump sum refund of the entrance fee to the a/b. If portions of the fee can be refunded or applied to pay for care as required, the condition in 1 is met. 2. The entrance fee (or remaining portion) is refundable when the individual dies or terminates the contract and leaves the CCRC or life care community; and It is unnecessary for the a/b to actually receive a refund of the entrance fee or deposit. This condition is met as long as the resident could receive a refund were the contract to be terminated or if he dies. 3. The entrance fee does not confer an ownership interest in the community. To verify the amount of the “entrance fees”, and to verify if the entrance fees are an available resource, contact the center in which the a/b specifies he has paid an entrance fee. The Department of Insurance website, www.ncdoi.com/fed/se/documents/ccrc/ccrclist.pdf, contains a current list of the Continuing Care Retirement Communities. R. Total the Value of All Liquid Assets Total the value of all countable liquid assets including cash value of life insurance (when total face value owned by any financially responsible person is more than $10,000 for that person), trust funds and revocable burial trusts. XI. TRUST FUNDS A. Definitions 1. Grantor - An individual who uses his assets or funds to create a trust. The grantor may also be the beneficiary. 77