Continuing Care Communities Need Financial Screening

By: fedweek

Before you make such an important decision as choosing a continuing care community for yourself or a loved one, do your homework by checking the books. A retirement community must have financial statements showing assets, liabilities and net income. These statements should be audited by a reputable professional. Once you’ve obtained those statements, hire an accountant or a lawyer to evaluate them. It’s well worth paying a few hundred dollars in professional fees for some assurance that the community won’t go bankrupt after move-in. Don’t forget to read (and re-read) the contract. Before making any payment, make sure you know exactly what you’ll be shelling out and what you’ll be receiving in return. Don’t be reluctant to question any provisions that are unclear to you. What if a community won’t show you its current financials? Then walk away — and pronto!