Yes, it’s true, and you’ll likely also have monthly-fee-related medical deductions of $5,000-10,000 per year thereafter. Most continuing care retirement communities (CCRCs) offer guarantees of life care in exchange for a sizeable entry fee. This guarantee is a type of long-term care medical insurance deductible in the year paid. Based on my experience and research, 20% to 40% of the entry fee and monthly fees is medical expense. The exact percentage depends on your contract type and the cost data of the CCRC.

Please contact me if you or your loved ones have questions about this. For greater details, please see my law review article.