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Can Assisted Living Take Your Savings or IRA?
Date Updated: July 26, 2024
Written by:
Rachel Lustbader is a writer and editor with a background in healthcare and technology. Her work has been published on websites including HealthCare.com, BiteSizeBio.com, BetterHelp.com, Caring.com, and PayingforSeniorCare.com. She studied health science and public health at Boston University.
Both of Rachel’s grandmothers had very positive experiences in senior living communities, and Rachel saw firsthand the impact that kind, committed caregivers and community managers can have on seniors’ and their family members’ lives. With her work at Caring, Rachel hopes to help other families find communities, caregivers, and at-home products that benefit elderly loved ones and make life less stressful for family caregivers
Assisted living can’t take your savings or IRA if you can no longer afford to pay for care. These facilities don’t have access to your personal savings or retirement accounts. However, some states allow assisted living communities to take legal action for unpaid bills or require a caregiver or family member to assume financial responsibility if a resident can’t afford to pay.
What Happens if You Can No Longer Afford Assisted Living Expenses?
Assisted living communities may discharge residents who can’t afford their expenses. Laws vary by state, but facilities must provide written notice 30 days before the discharge date and create a discharge plan detailing resident health information and recommended next steps. Some communities offer benevolent care for residents experiencing financial difficulties. In these cases, benevolent funds cover the difference when a resident can’t afford the full price of care. Faith-based communities commonly offer benevolent care.
Additionally, residents can ask their family or friends for financial assistance or consider relocating to a more affordable community. They can also research financial assistance options to see if they meet eligibility requirements.