Heron Point of Chestertown Pricing

A Continuing Care Retirement Community (CCRC) entrance fee is an upfront cost paid by residents when they move into the community. This fee, which can reach several hundred thousand dollars, 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 in part 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.

Put simply, the resident moves in while entirely independent, ready to enjoy the community's amenities. When a higher level of care such as assisted living is required, the resident receives it on campus without any direct increase to their monthly fee. They have prepaid much of their long-term healthcare in today’s dollars, avoiding future 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 electric or natural gas, 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 and fitness opportunities, swimming pools and other amenities, enrichment programs and hobbies, 24-hour security, and more

If you or your loved one find yourselves unable to pay the monthly fees for a Continuing Care Retirement Community (CCRC), some possible solutions include downsizing the resident’s living arrangement and/or seeking assistance from a community benevolent fund, if one exists. Such a fund exists to ensure residents can continue living on campus even if they outlive their assets through no fault of their own. When considering retirement communities, it is highly recommended to ask about their policy for those who outlive their assets and if the community offers a benevolent fund. A thorough financial assessment should typically be completed before residency, helping the resident to prepare for budgeting expenses while a member of the community.

Maryland is the eighth most expensive state to retire in 2024 due to its high state taxes and cost of living. According to NetCredit, you need just over $673,000 to retire comfortably in Maryland.

The average cost of living in a retirement community in Maryland varies depending on the type of care and the specific community. The National Investment Center for Seniors Housing & Care reports that the typical monthly cost of living in a retirement community is $3,960. Maryland's cost of living for retirees is relatively high. However, the state has numerous retirement communities with top-notch amenities and services that can make the expense worthwhile for many.

Retirees in Maryland face several taxes, including state income tax rates and additional local income taxes. While Social Security benefits are exempt, income from pensions, 401(k)s, and IRAs are taxable, with a partial exclusion for seniors. Maryland has high property taxes, and both estate and inheritance taxes, though there are certain exemptions for close relatives. Retirees may also encounter vehicle registration fees and personal property taxes on specific assets.

At a Continuing Care Retirement Community (CCRC), many long-term healthcare 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.