Magnolia Trace Pricing

A Continuing Care Retirement Community (CCRC) entrance fee is an upfront cost paid by residents when they move into the community. This fee is typically designed to help prepay for future healthcare needs in today’s healthcare dollars, rather than the inflated costs down the road. The entrance fee also secures a residence within the community. It acts as an investment in the resident's future care, helping to subsidize the cost of higher levels of care, such as assisted living or skilled nursing, if needed.

In other words, the resident moves in when entirely independent, ready to take advantage of the amenities offered by the community, and when a higher level of care such as assisted living is needed, the resident receives it, right on campus, for no increase to their monthly fee. They have already prepaid it in today’s dollars, avoiding years or even decades of inflation and uncertainty.

The specific terms and coverage provided by the entrance fee can vary depending on the type of contract chosen. 

The services and amenities that the monthly fee pays for includes but is not limited to:

• Utilities such as water, standard cable television, and wireless internet
• Taxes like property taxes
• Maintenance including repairs, replacement of equipment, exterior cleaning, groundskeeping and lawn service, and snow removal.
• Personal services including chef-prepared meals; recreation, fitness, aquatics areas and enrichment programs, 24-hour security; 24-hour access to resident nurses; medical alert system; annual apartment inspection and cleaning; scheduled local transportation; additional storage; educational seminars, classes, hobbies; and more.

If you or a family member are having difficulty affording the monthly fees for a Continuing Care Retirement Community (CCRC), there are several potential options to consider. One solution is to downsize the resident's living space. Another option is to seek assistance from a community benevolent fund, if available, which can help ensure residents can remain in the community even if they exhaust their financial resources. When evaluating retirement communities, it is important to ask about their policies for residents who outlive their assets and whether they offer a benevolent fund for financial support.

Alabama is one of the most affordable states for a comfortable retirement due to its low cost of living and tax-friendliness. According to NetCredit, you need just over $536,000 to retire comfortably in Alabama.

The average cost of living in a retirement community in Alabama varies depending on the type of care and the specific community. According to Genworth’s 2023 Cost of Care Survey, the average cost of assisted living in Alabama is $4,143 a month.

Alabama is one of the most tax-friendly states for retirees. Alabama exempts Social Security benefits from state income tax, no matter their income level. The state also exempts retirement income like traditional IRAs and 401(k)s from state income tax. However, pension benefits are typically subject to federal taxation.

At a Continuing Care Retirement Community (CCRC), medical expenses are integrated into your contract, so you don’t need to establish whether they are tax deductible. Additionally, residents who itemize deductions can deduct a significant portion of CCRC fees as a prepaid medical expense, including both the one-time entrance fee and the monthly fee.