Potential Tax Benefits for Seniors at New Pond Village

The costs of retirement communities can seem overwhelming, but there are valuable tax benefits for seniors who choose a Type A continuing care retirement community (CCRC) like New Pond Village. That is because Type A CCRCs offer Lifecare plans.

At New Pond Village, Lifecare provides access to a continuum of care, with on-site Assisted Living and Mind & Memory Care at a more predictable monthly rate—based on what you pay for Independent Living. This type of contract not only ensures little to no increase in costs beyond standard inflationary adjustments but also provides seniors with specific tax deductions that can significantly reduce overall expenses, making the transition to retirement living more affordable than you might expect.

How Lifecare Can Offer Tax Savings

When considering the tax benefits of selecting a Lifecare plan at New Pond Village, it’s important to consult with a tax and estate planning professional. However, several potential tax savings are available to seniors. These savings can significantly reduce the cost of living in a Lifecare community while providing financial security for your future.

Entry Fee Deductions

• A portion of the non-refundable entry fee may be deductible as a pre-paid medical expense.
• If you choose the Lifecare plan with a 90% refund option, the remaining 10% may qualify as a medical expense deduction.
• If your spouse or partner joins you, their additional non-refundable entry fee may also be deductible.

Monthly Service Fee Tax Deductions

• Typically, 20–25% of your monthly service fees can be deducted as medical expenses.
• For example, if your fees total $100,000 annually, you may deduct up to $25,000 on your taxes.
• If you transition to Assisted Living, the deduction may increase, depending on the level of medical care received.

Long-Term Financial Security

A Lifecare plan provides financial predictability by covering residential services, amenities and care with minimal fee increases beyond inflationary adjustments. This helps you better plan for future care costs without worrying about rising healthcare expenses or eligibility concerns.

At New Pond Village, residents benefit from a variety of services, including housekeeping, linen services and home maintenance. Enjoy a wide range of amenities right outside your door, such as a fitness center, billiards room, library and beauty salon/barbershop, among others.

To qualify for Lifecare, it is essential to plan early while you are still healthy and independent. Waiting until a health crisis may limit your options, so it’s important to make decisions proactively to secure long-term care with more predictable costs.

When Partners Have Different Care Needs

Another important benefit of Lifecare is its ability to support couples with differing care needs, allowing them to stay together in the same community. If one spouse needs Assisted Living while the other remains independent, they can continue sharing their home and community, paying just one monthly fee. This arrangement ensures they can stay connected, enjoy each other’s company and maintain a sense of stability and support.

How Long-Term Care Insurance Factors In

Many long-term care insurance policies help cover service fees in Assisted Living and Skilled Nursing. However, deduction amounts depend on factors like:

• The resident’s age.
• Policy type and coverage.
• Potential tax savings compared to out-of-pocket expenses.

It’s essential to evaluate long-term care insurance options in conjunction with the tax benefits of a Type A CCRC to make an informed decision.

Discover More About Lifecare and Tax Benefits

While tax benefits for seniors are an important consideration, they are just one of many advantages of moving to a Type A CCRC like New Pond Village. Discover the many benefits of a Lifecare community, including the confidence knowing that future care needs are covered. Our community offers premier services, engaging programs and a vibrant social atmosphere.