Quick Answer: CCRC entrance fees are one-time upfront costs that secure your place in a continuing care retirement community and fund your future healthcare. Nationally, fees range from $100,000 to over $1 million depending on contract type, apartment size, and refund structure. In exchange, residents gain a lifelong home and access to care at every level, with no obligation to move again as needs change.
While CCRC entrance fees can look daunting at first, there are more options available to you than you might think. Different contract structures, refund policies, and payment strategies give prospective residents meaningful flexibility in how they approach this investment.
This article covers what entrance fees are, how different contract types compare, what happens in common "what if" scenarios, how to pay, and what tax deductions may be available to you.
Contents
- What Are CCRC Entrance Fees?
- Types of CCRC Contracts
- Refundable vs. Non-Refundable Entrance Fees
- Common "What If" Questions
- How Do People Pay the Entrance Fee?
- Are Entrance Fees Tax-Deductible?
- Medicaid Planning Considerations
- FAQs
What Are CCRC Entrance Fees?
CCRC entrance fees are one-time costs paid before moving into a continuing care retirement community. Unlike a traditional rental deposit, the entrance fee is not simply a security deposit. It funds your ongoing care, the community's infrastructure, and your future access to higher levels of support as your needs change.
In exchange, you receive the long-term right to live in your home and transition between care levels, from independent living to assisted living, memory care, or skilled nursing, without having to move to a new community.
Nationally, entrance fees range from approximately $100,000 to over $1 million, with most communities falling in the $200,000 to $500,000 range depending on location, apartment size, contract type, and refund structure. Contact our admissions team for current entrance fee information at Havenwood Heritage Heights.
The entrance fee also affects your monthly fee. A higher entrance fee under a Life Care contract typically locks in a lower, more predictable monthly cost, while a lower entrance fee under a Fee-for-Service contract shifts more costs to your monthly bill as care needs increase. At Havenwood Heritage Heights, monthly fees for independent living range from $1,825 to $5,595 depending on your residence type, from a studio apartment to a single-family home with a garage and basement. Should your needs change, assisted living starts at $4,400 per month for a one-bedroom apartment, and memory care at Melody Lane is $363 per day for a semi-private room and $420 per day for a private room. Both are flat rates that include dining, housekeeping, activities, specialized care, and more.
Types of CCRC Contracts
The contract type you choose determines what your entrance fee covers and how your monthly costs are structured as your care needs change. There are three primary contract types:
Type A: Life Care Contract
A Life Care contract (sometimes called an "extensive contract") is the most comprehensive option. Your entrance fee is higher upfront, but it covers most or all future assisted living and skilled nursing care at little to no additional cost beyond your regular monthly fee.
Best for: Residents who want maximum predictability and peace of mind. The community assumes the financial risk if your care needs escalate significantly.
Trade-off: Higher entrance fee. If your health remains strong for many years, you may not use the care coverage you've prepaid for.
Example: A Life Care contract might carry a higher entrance fee, but your monthly cost (which at Havenwood Heritage Heights ranges from $1,825 to $5,595 depending on residence type) remains essentially stable even if you eventually need memory care or skilled nursing.
Type B: Modified Fee-for-Service Contract
A Modified contract strikes a middle ground. Your entrance fee is lower than Life Care, and you receive some care services at a discounted rate, though not at the same bundled cost as a Life Care contract. Once you exceed your included care allotment, additional care is billed at a rate below market, but still at an added cost.
Best for: Residents in generally good health who want some coverage without paying fully for comprehensive care they may not need.
Trade-off: You assume partial financial risk if care needs are greater than anticipated.
Type C: Fee-for-Service Contract
A Fee-for-Service contract carries the lowest entrance fee. Care is available on campus, but billed at or near market rates when you use it. Your monthly costs in independent living are lower, but they can increase substantially if you transition to assisted living or skilled nursing.
Best for: Residents in excellent health, or those with long-term care insurance that will offset higher care costs if needed.
Trade-off: You assume the most financial risk. Monthly costs can be significantly higher if care needs increase.
Example: A Fee-for-Service contract carries a lower entrance fee, and independent living at Havenwood Heritage Heights starts at $1,825 per month, but if you later transition to assisted living, costs start at $4,400 per month for a one-bedroom, and memory care runs $363 to $420 per day depending on room type.
Refundable vs. Non-Refundable Entrance Fees
Most CCRCs offer both refundable and non-refundable entrance fee options. Understanding the difference is important, particularly if preserving your estate for heirs is a priority.
Non-refundable entrance fees are the most common option. Once paid, this fee is not returned when you leave the community or pass away. Non-refundable fees are typically lower upfront and are more likely to qualify for tax deductions (see the tax section below).
Refundable entrance fees return some or all of the fee to you or your estate when you leave. Common refund structures include:
- 90% refundable: you receive 90 cents on the dollar whenever you leave
- 50% refundable: returns half the entrance fee regardless of length of stay
- Declining balance: starts at 90% and decreases by a set percentage each year (e.g., 90% in Year 1, 80% in Year 2, and so on)
Refundable entrance fees typically cost 10–20% more upfront than non-refundable options for the same residence. Residents who want to preserve assets for heirs, or who are uncertain about their long-term plans and want financial flexibility benefit the most from refundable fees.
Common "What If" Questions
Many prospective residents have understandable concerns about what happens in uncommon but important scenarios. These are the questions we hear most often.
What if I need to leave within the first year?
Most CCRCs have a defined trial period (typically 30 to 90 days) during which you can leave and receive a full or substantial refund of your entrance fee minus pro-rated monthly fees. After that period, your refund eligibility depends on your contract type. Always ask for specifics in writing.
What happens to the entrance fee when I pass away?
For non-refundable contracts, the entrance fee is not returned to your estate. For refundable contracts, the remaining eligible balance is returned to your estate based on your refund structure.
Can my spouse remain in independent living if I move to skilled nursing?
Yes, in most cases. Each resident's care level is evaluated independently. Your spouse would continue in their current residence while you receive care in another part of the campus. Costs adjust accordingly based on your contract type.
What if I run out of money for monthly fees?
This is an important question, and one to ask directly of each community you're considering. Many nonprofit CCRCs, including Havenwood Heritage Heights, have benevolent care funds or financial assistance programs for residents who deplete their assets through no fault of their own. The specifics vary by community.
How Do People Pay the Entrance Fee?
The entrance fee is a significant cost, but most residents approach it by consolidating assets they no longer need once they move, particularly housing. Common payment strategies include:
- Selling a primary home: often the largest single source of funds; proceeds typically cover a significant portion of or the entire entrance fee
- Home equity line of credit: useful as a bridge loan if the home sale takes time
- Retirement savings and investment accounts: IRAs, 401(k)s, and brokerage accounts
- Liquidating other assets: vehicles, vacation properties, collectibles
- Long-term care insurance: some policies offset care-related costs, freeing other assets for the entrance fee
When you begin the process of moving into a continuing care retirement community, a financial counselor on staff can review your situation and help you develop a payment plan. At Havenwood Heritage Heights, we have resources to guide families through this process and help identify the best approach for your circumstances.
Entrance Fee Planning Worksheet
Use this simple worksheet to estimate what you have available.
| Source | Estimated Amount |
| Home sale proceeds | $_______ |
| Retirement savings allocated | $_______ |
| Investment liquidation | $_______ |
| Long-term care insurance proceeds | $_______ |
| Other assets | $_______ |
| Total Available | $_______ |
Are Entrance Fees Tax-Deductible?
A portion of your entrance fee may be tax-deductible as a prepaid medical expense, a benefit many prospective residents don't realize is available. A few key rules govern what qualifies:
- Only non-refundable portions qualify. Refundable entrance fees or refundable portions of an entrance fee cannot be deducted.
- The deductible portion is what's allocated to prepaid healthcare. Life Care and Modified contracts typically include a healthcare prepayment component; Fee-for-Service contracts generally do not.
- You can deduct it in the year you pay, even before receiving care. Because it's treated as an advance payment for medical services, you don't have to be receiving care at the time.
- On average, 30–40% of a CCRC entrance fee may be deductible, though the exact percentage is determined by your community's accountant and varies by contract.
- Monthly fees follow a similar pattern. A portion of your monthly fee (typically the same percentage as the entrance fee deduction) may also qualify as a deductible medical expense.
To claim medical expense deductions, you must itemize deductions on your federal return (not take the standard deduction). Under current tax law, medical expenses are deductible only to the extent they exceed 7.5% of your adjusted gross income (AGI). Given the size of entrance fees, this threshold is often easily cleared in the year of move-in.
We strongly recommend consulting a tax professional to determine exactly what is deductible in your specific situation.
Medicaid Planning Considerations
If you believe Medicaid may play a role in funding your long-term care, it's important to understand how CCRC entrance fees interact with Medicaid eligibility before you commit.
- Medicaid has an asset limit for eligibility. Paying a large entrance fee reduces countable assets, which can affect eligibility timing.
- Medicaid has a five-year look-back period. Transfers of assets within five years of a Medicaid application can trigger a penalty period of ineligibility.
- CCRCs and Medicaid have a complex relationship. Some CCRCs accept Medicaid for skilled nursing care once residents deplete their assets; others do not. This is a critical question to ask directly.
- Some CCRC contracts include protections for residents who exhaust their funds, particularly at nonprofit communities like Havenwood Heritage Heights.
This is an area where working with a qualified elder law attorney before signing any contract is strongly advisable. An elder law attorney can help you structure your assets in a way that protects your eligibility and your estate.
Questions to Ask About Entrance Fees
Before signing a contract with any life plan community, make sure you have clear answers to these questions:
- Is the entrance fee refundable? What percentage, and on what timeline?
- Which contract type do you recommend for my health situation and financial goals?
- How is the entrance fee allocated between housing and prepaid healthcare?
- What percentage of the entrance fee and monthly fee is typically tax-deductible?
- What happens to my spouse's residence and monthly fee if I transition to skilled nursing?
- What financial assistance is available if I outlive my assets?
- Do you accept Medicaid for skilled nursing care?
- How have monthly fees increased over the past five years, and what drives those increases?
Understanding CCRC Entrance Fees at Havenwood Heritage Heights
As one of just three accredited CCRCs in New Hampshire, Havenwood Heritage Heights provides seniors with a full continuum of care, from independent living through memory care and skilled nursing, on two campuses in Concord.
Our entrance fee and contract structure is designed to give you the information and support you need to make a confident decision. Our financial counselors are available to walk you through every aspect of the process, from comparing contract types to planning how to fund your entrance fee.
Ready to learn more? Contact us to speak with a member of our admissions team. You can also explore our NH senior living options or learn when it might be time to consider a CCRC.
