You’ve got questions. We’ve got answers.
We’ve answered some of the most common financial questions we hear every day. Hopefully our answers – and our community – are exactly what you’re looking for. If you have questions not addressed here, please don’t hesitate to contact us for an opportunity to speak directly with a Sales Counselor.
Why is it a good investment to make a deposit at Searstone?
Making a deposit for the Highview Priority Club at Searstone is a great way to start making a plan for the future. The Priority Club deposit secures several benefits that could save more than $50,000 off the final cost at The Highview, and the deposit is low risk – $500 which is fully refundable. Searstone operates as a not-for-profit continuing care retirement community, and we are proud of the fact that all our financial decisions are made in the very best interest of our residents, and not for a larger financial interest. We’ve operated a successful budget since opening which has allowed us to serve residents in the high-quality way they’d expect, and kept overall cost increases in check.
What are some tax advantages of living at Searstone?
There are several components of the costs at Searstone that can be considered tax advantages. The Life Care fee component of the Entrance Fee may be considered a pre-paid medical expense, and the full amount of the Life Care Entrance Fee may be deducted the year a resident pays the fee to Searstone. Each year, a portion of the Monthly Service Fee may be considered a pre-paid medical expense. Our team provides an annual letter outlining the IRS code and the percentage the actuaries provide for the deduction. Because residents don’t own the property at Searstone they are no longer responsible for property taxes.
How will the construction of The Highview be financed?
The construction of The Highview will be financed through tax-exempt bond financing. Our finance partner, HJ Sims, will organize institutional investors and individual investors to participate in the bond financing. This is typically how not-for-profit CCRCs are financed, and this is how the first phase of Searstone was financed. In order for the financing to occur, the team at Searstone has a goal to have at least 70% of the apartment homes reserved. We expect this goal to be achieved by November of 2021.
Why is there an Entrance Fee to move into a CCRC?
Many residents fund the entrance fee with proceeds from the sale of their home. This model of entrance fee allows residents to enjoy the benefits of retirement community living with the added assurance of the full continuum of care provided at predictable costs. Residents can rest easy knowing that a portion, or all, of their entrance fee will be returned to them, their children or their estate in the future.
What’s included in the monthly fee?
For the most part, the monthly fee is roughly equal to or less than the monthly cost of living residents paid in their homes before moving to Searstone. This is especially true when one factors in all of the services, amenities and upkeep expenses. Life at Searstone means saying goodbye to homeowner’s insurance, utility bills, property taxes, home maintenance, yardwork and all the headaches of home ownership and saying hello to the comforts and convenience of complete peace-of-mind living.
Searstone is a Life Care Community. What if I have Long Term Care Insurance?
Your long-term care policy will work together with your care at Searstone and pay earned benefits directly to you as the policyholder in most instances. A Sales Counselor can help you better understand your policy and what benefits you would be eligible for.
Can you talk a little about the Development company you’re working with on The Highview?
Greenbrier serves as a boutique planning, finance, development and marketing firm dedicated to helping senior living clients throughout the US. Our organization was founded 14 years ago in the midst of one of the most challenging economic climates of modern times, and that experience has brought forward a culture of conservative future planning for our communities. Since its founding, Greenbrier has served over 75 clients in varying capacities, and has been involved in the development of senior living projects approaching $3M in value. The Board of Directors at Searstone relied on Greenbrier for a successful development and opening for Phase 1 and turned to Greenbrier again for the success of The Highview.
Searstone is a not for profit, we’ve toured a for profit CCRC, too. What is the difference?
While both for-profit and not-for-profit extend and provide the same services and care – from retirement living to personal and assisted care, the goals and the ways in which they utilize that income you pay for your care and services may differ.
Revenue and donations earned by not-for-profits go towards maintaining and operating their communities for the well-being of their residents instead of providing a financial return to corporate stakeholders and investors, such as for-profit CCRCs. Adhering to mission-based culture or faith-based groups is a plus to many seniors and find it a better value when moving into a CCRC. But this doesn’t mean that for-profit CCRCs do not show that same compassion or investment to the community and residents because they do, considering there are many successful for profit organizations across the country.
At the end of the day, it is important to do a detailed research to compare all of your options and see which one is best for you. Take into consideration the location, pricing, services and amenities that each community has to offer that will fit all your needs and more before you take that next chapter of your life. In the end, the priority is you.