The Standard Option prorates the refund to any resident leaving the community for any reason other than death within 48 months of occupancy. The Entrance Fee amortizes at 2% per month for each month of occupancy plus a 4% administrative charge. If death occurs within the first six months of residency, the estate would receive a refund less 2% for each month of residency.
The 50-Month Declining Balance Option prorates the refund to any resident leaving the community for any reason including death within 48 months of occupancy. The Entrance Fee amortizes at 2% per month for each month of occupancy plus a 4% administrative charge. If death occurs within the first 48 months of residency, the estate would receive a refund less 2% for each month of residency.
The 80% Refund Option prorates the refund to any resident leaving the community for any reason including death within six months of occupancy. The Entrance Fee amortizes at 1% per month for each month of occupancy through the 6th month plus a 4% administrative charge. The refund is never less than 80% of the original Entrance Fee paid. (The standard option is the lowest priced Entrance Fee option.)
