What is an entrance fee and how does it work?

An entrance fee, what most people think of as the purchase price, is a one-time payment that secures residency and access to healthcare services. When moving to a Moorings Park community, you are not purchasing the residence but rather securing a life-lease, along with long-term health care. A portion of your entrance fee is refundable, to you or your estate, depending on the contract selected. Refundability options include 70%, 50%, and 0% contracts. And because the IRS views your entrance fee as a prepaid health benefit, there is a sizable one-time deduction on your entrance fee (there is also an annual deduction on your monthly services fees). There are also no real estate taxes, condo assessments, or property insurance requirements (other than renter’s insurance). Residents should consult their tax advisor.