Legal Definitions - life-care contract

A life-care contract is a formal legal agreement where an individual transfers significant assets, such as property or a substantial sum of money, to another party. In return, the receiving party commits to providing comprehensive care, maintenance, and support for the individual for the remainder of their life. This typically includes housing, meals, personal assistance, and access to medical or nursing care.

• Example 1: Retirement Community Agreement

  An elderly individual, Mrs. Henderson, decides to move into a continuing care retirement community. She signs a life-care contract with the community, agreeing to transfer a large upfront payment and a portion of her estate to the facility. In exchange, the community guarantees her a private apartment, daily meals, housekeeping services, social activities, and access to on-site assisted living and skilled nursing care should she need it, all for the rest of her life.

  This illustrates a life-care contract because Mrs. Henderson transfers substantial financial assets (property/money) to the retirement community, and in return, the community assures her of comprehensive care and maintenance, including housing and medical support, for her entire remaining lifespan.

• Example 2: Family Support Arrangement

  Mr. Chen, an aging widower, transfers the deed to his family home to his adult daughter, Sarah. In a formal life-care contract, Sarah agrees that in exchange for the property, she will move in with her father, manage all household expenses, provide personal care, arrange for his medical appointments, and ensure his well-being and comfort for as long as he lives. The contract specifies that she cannot sell the house or evict him.

  This demonstrates a life-care contract because Mr. Chen transfers his property (the family home) to his daughter. In return, Sarah commits to providing him with lifelong care, maintenance, and support within his home, fulfilling the terms of the agreement.