The ABC’s of Asset Preservation:
Cornwall Manor offers a variety of residential options including one- and two-bedroom apartments and single and duplex homes. Residents pay a one-time entrance fee to live in a residential apartment or home as long as they are living independently and have the assurance that higher levels of care are available when needed. One option for entrance fees Cornwall Manor offers is the Asset Preservation Plan.
Cornwall Manor’s Asset Preservation entrance fee plan allows for 50% of the entrance fee paid by the resident to be credited as a Health Care credit utilized for the care and services upon permanent transfer to a higher level of care (personal care or skilled nursing care). This credit remains at its full value regardless of your length of residency. If the credit is not used for health care, a refund of this credit would be returned to the estate.
The other 50% of the entrance fee paid is the amortizable portion. This amount is reduced at rate of 2% per month over the first 50 months of residency. After 50 months, no part of this portion is available for health care needs or goes to the estate.
Here’s an example:
Total Entrance Fee under Asset Preservation: $268,000.00
Health Care Credit (50% of total) $134,000.00
Amortized Portion (reduced over 50 months) $134,000.00*
*The amortized portion reduced as follows:
Amortized Portion $134,000.00
Less- non refundable reservation deposit $ 5,000.00
Balance amortized over 50 months $ 29,000.00
The amount of $129,000 is reduced at a rate of 2% a month for 50 months. After the 50 months this amount is reduced to 0.
In addition to the entrance fee there is a monthly service fee living in residential living. The monthly service fee includes a wide range of services and amenities such as utilities (except for telephone, cable and internet), water, sewer, garbage collection, snow removal, lawn maintenance, interior and exterior maintenance, property taxes, property insurance, security, transportation, fitness center, swimming pool and much more! Housekeeping is included in apartments only but is available to all house residents at a prevailing fee.
3/30/2023
