Beneficent Care at CBTS
What happens if you outlive your assets or your funds run out?
|Excerpt from Revenue Ruling 72-124||"Thus, an organization,...which devotes its resources to the
operation of a home for the aged will qualify for charitable status [if
it satisfies the needs of aged persons]...for housing, ... for health
care, and ... for financial security...".
"The need for financial security, i.e., the aged person's need for protection against the financial risks associated with later years of life, will generally be satisfied if two conditions exist. First, the organization must be committed to the established policy, whether written or in actual practice, of maintaining in residence any persons who become unable to pay their regular charges. This may be done by utilizing the organization's own reserves, seeking funds from local and Federal welfare units, soliciting funds from its sponsoring organization, its members, or the general public, or by some combination thereof."
|Excerpt from a sample contract||
VI. DEFAULT AND POSSIBLE SUBSIDIZATION
3.Substitution of Your Residence. If you seek public assistance or any other alternative payment arrangement under this Section, Front Porch reserves the right to transfer you to an alternate Residence, if appropriate.
4.Increase in Assets; Preservation of Assets; Repayment Instruments.
To maintain any alternative payment arrangement with Front Porch, you
must do all of the following:
(1) report promptly to Front Porch any material increase in your
assets or their value, whether the increase occurs by way of gift,
inheritance, appreciation in value, or otherwise;
(2) refrain from transferring any assets for less than their fair
(3) make arrangements, at Front Porch request, for the preservation
and management of your property by others, including conservators and
(4) execute any instruments (such as promissory notes, assignments,
security agreements, and deeds of trust) that Front Porch deems
necessary to evidence or secure its claim for repayments of any sums due
under this Section.
5.Repayment of Front Porch. You agree that any deferral or subsidization of your Monthly Fees or other charges under this Section VI.B shall be deemed a loan to you by Front Porch, shall be a first lien against your estate, and shall be deducted from any refund that Front Porch may owe you or from any repayment of your Entrance Fee to which you would otherwise be entitled under Section IX below. If your financial situation improves while you are at Carlsbad By The Sea, Front Porch's subsidy to you will be decreased or eliminated, as determined by Front Porch in its sole discretion. If your financial situation improves to the extent that you are able to repay all or part of Front Porch's subsidy to you, you will be required to make such repayment at a rate and on terms established by Front Porch in its sole discretion.
|Fund raising to offset cost of beneficent care|
|Governance of the California Lutheran Homes Foundation|