Life Care and The Fellowship Fund

STAFF
Published: March 22, 2008

     
There are many different financial planning options you can choose in preparation for your retirement years. One is the financial strategy chosen by residents of Westminster-Canterbury of the Blue Ridge.

      A nationally accredited Life Care Community located on a 56-acre campus on Pantops Mountain, Westminster-Canterbury helps seniors live longer, healthier lives with less worry about their financial future. Two important programs, Life Care and the Fellowship Fund, provide financial security to those who call this community home.

      As a Life Care Community, residents pay a one-time entrance fee based on a selected cottage or apartment residence and a monthly fee. The monthly fee covers household expenses—utilities, housekeeping, fresh linens and all maintenance services, as well as community amenities, like an indoor pool and spa, fitness center, exercise classes, a health clinic, a library, gift shop, a chapel, meeting rooms for classes and lectures, a performing arts center, buses and vans for local transportation, and several meal options in both casual and formal dining areas.

      The advantage of choosing a Life Care Community becomes clear when a resident experiences a gradual or sudden need for health services. At Westminster-Canterbury, a variety of private assisted care and nursing care services are available. For example, a resident in an independent living apartment or cottage may find that he or she is no longer able to live independently and now needs assistance with medications, bathing, dressing and meals each day. The resident would have access to a private assisted living suite or studio where those services are provided by 24-hour staff.

      If that resident’s needs increased further and intermediate or skilled nursing care was needed, they could easily transfer to a private room in the Health Center. The monthly fee amount would remain the same, despite the increase in services from one level of care to the next. Not only does the resident enjoy the security of receiving care in their own community, in a private accommodation with familiar staff, there is no sudden doubling or tripling of monthly expenses even if their need for health services has doubled or tripled.

      Consider that the average cost of intermediate and skilled care in a private nursing home is currently $70,000 annually and this amount increases each year. This figure can also be influenced by the location and condition of a facility and whether or not one enjoys a private or semi-private room. If you own a home or pay rent for an apartment, you still have to cover those costs while you are away and pay all of your new health care and medical bills.

      By choosing Life Care, Westminster-Canterbury residents who need temporary assisted living or nursing care services aren’t suddenly charged more for their care needs. They continue to pay the same monthly fee even while continuing to maintain a cottage or apartment. If their need for care is permanent, the monthly fee still remains the same.

      This financial predictability enables residents to accurately plan their finances without concern for large nursing home bills depleting their savings in the future. Imagine the costs associated with a couple that might both require assisted living or nursing care. At today’s market rate, the annual costs could easily become $140,000 and there are no guarantees that a couple would even be able to reside in the same care facility. At Westminster-Canterbury, the combination of stable monthly fees and guaranteed access to a full continuum of care with private accommodations is invaluable.

      From a tax-planning perspective, a portion of the community entrance fee and a portion of each monthly fee paid may be recognized as a medical deduction by the IRS. This deductible portion of the Life Care entrance fee and monthly fee is viewed as pre-payment for future health care.

      Even better, part of the entrance fee paid is refundable, depending on the refund option selected. At Westminster-Canterbury, the refundable portion of the entrance fee is refunded in the unlikely event that a resident chooses to move out, or more common, is refunded to the resident’s estate. Selecting a guaranteed refund plan may also be one option for leaving an inheritance to family members. Alternatively, residents may choose to direct the refund to a favorite charity.

      As a non-profit community fostered by the Presbyterian and Episcopal churches, Westminster-Canterbury has always recognized the need to provide financial support to those residents whose resources may be depleted. This support is provided through the Westminster-Canterbury of the Blue Ridge Foundation, a 501(C)(3) non-profit organization, which gathers private support for the community’s charitable activities.

      A vital program of the Foundation is the Fellowship Fund, providing confidential financial assistance to ensure that no resident will ever have to leave the community due to changes in personal financial resources. Since inception, the Fellowship Fund has distributed more than $2.5 million to residents in need.

      Westminster-Canterbury offers a variety of estate planning options to residents, families or friends interested in supporting the community and the Foundation. Bequests, gift annuities, charitable lead and remainder trusts, as well as gifts of stock, real estate and personal property are just some of the available estate planning choices. An annual charity golf tournament is a fun way for residents, friends and community partners to support the Foundation. The 2007 golf tournament at Old Trail Golf Course in Crozet raised more than $23,000. The 16th Annual Golf Tournament will be held at Old Trail Golf Course on Friday, September 26, 2008.

      Westminster-Canterbury is the area’s only Life Care Community, and the only local retirement community to achieve CCAC/ CARF accreditation, an internationally recognized mark of quality and excellence. The community features a variety of residential options including two styles of apartments and three styles of cottages. The newest residences, the spacious Albemarle Cottages, are scheduled to be completed this spring.

      Finally, an important fact to remember is that seniors who move to communities like Westminster-Canterbury live longer, healthier lives, on average seven years longer, according to a referenced 1996 study by Duke University. So, when evaluating your estate plan and your future needs, strongly consider the advantages of choosing a non-profit Life Care Retirement Community. For more information about Westminster-Canterbury, call (434) 972-2622 or visit www.WestminsterCanterbury.org.