Type B Modified Contract | Financial Strength | FAQ about Carol Woods' Contract

1. What financial qualifications do I have to meet to live at Carol Woods?
There is no set amount of money a person must have to live at Carol Woods. One important element of Carol Woods’ mission is to maintain its pricing structure to encourage access to as broad a market as possible. When you go through the admissions process, we will conduct a financial screening to qualify you for your desired accommodation. If you would like to have a financial pre-screening prior to entering the admissions process, please contact the Admissions & Public Relations department.

2. Do you require residents to carry long-term care insurance? Can I use it if I already have it?
Since Carol Woods is a type of long-term care insurance shared by residents who live here, no long-term care insurance is required. However, if residents have an existing policy and choose to keep it, they will be able to use those benefits at Carol Woods to further reduce their costs when they move to Assisted Living or the Health Center.

3. Do I buy my cottage or apartment? Do I retain equity in it?
No, you do not own or retain equity in your cottage or apartment at Carol Woods. However, because Carol Woods retains ownership, you are not responsible for property taxes.  Payment of the Entry Fee guarantees you a home on our campus that will meet your needs over your lifetime.  A portion of the Entry Fee also pre-pays part of the cost of future health care in today’s dollars.

4. What kind of refund is available?
Carol Woods offers a 2% declining refund. This means a total refund of your Entry Fee will be made if you leave within the first 90 days of occupancy. After 90 days, the refundablity will decline by 2% per month, with no refund after 50 months.

5. Why is this the only refund/equity option you offer?
A declining refund allows you to retain more of your assets to invest as you choose through a lower entrance fee. A lower entrance fee is also more affordable to a larger percentage of the population.  

A declining refund contract also means a substantial amount of the Entry Fee can be entered as a medical deduction on your federal taxes. This refund option has proven long-term stability and is actuarially sound. It also supports a continued quality of service and predictability of costs.

Some points to consider about refundable fee or equity contracts:

• Entry fees tend to be higher in order to offer a refund.

• Refunds will either be in depreciated dollars or, to gain appreciation, will be tied to the real estate market, with risk of re-sale borne by the resident or their estate.

• Because the refund is tied to the real estate market, there is no refund until the unit is resold.

• Re-furbishing and re-marketing costs are frequently deducted from the refund.

• Refundable fees are not eligible for medical expense tax deduction.

• Some have individual property tax exposure.

 6. Who owns Carol Woods?
Carol Woods is a private community-based not-for-profit corporation that is governed by a local Board of Directors, all of whom serve on a volunteer basis. The Board of Directors has final say on decisions involving Carol Woods. Carol Woods residents always hold two voting positions on the Board of Directors.