Central Parke at Victoria Falls, a 55+ Community in Laurel

Entrance to the clubhouse at Central Parke at Victoria Falls

As I wrote in my earlier article about 55+ Communities, there are actually many communities in the area to choose from.  I already wrote about Leisure World.  Another community that is very close to the DC area is Central Park at Victoria Falls in Laurel, conveniently located right at I-95 and I-200.

Victoria Falls was constructed beginning in 2006.  It contains a variety of home styles – 112 detached single-family homes, 247 attached villas, and 250 condominiums.  There are presently nine homes for sale at Victoria Falls.  These range from a 2-bedroom condo with 1673 square feet, listed at 250K, to a 4-bedroom detached single family home with a double garage with 2177 square feet, listed at 495K.  The single-family homes and villas all have a large master bedroom suite on the first floor, and at least a one-car garage.  The condos all have elevators and parking in a covered garage at the bottom of the building.

Central Parke at Victoria Falls has a wonderful clubhouse that contains a large indoor pool, a library with computers, a fitness center, several meeting rooms, and a ballroom.  The community also has a large outdoor pool, tennis courts, and walking trails.  There are activities scheduled each day for residents, as well as field trips to different area attractions several times a month.

The fitness center at Central Parke at Victoria Falls.

The community takes care of all outdoor maintenance of the homes, including snow removal, lawn care, and gutter cleaning.  And, from what the staff has told me, unlike many 55+ communities, people can live there who are under 55, as long as all members of the household are at least 19, and one member is over 55.  That offers some flexibility for families that might have adult children living with them.

Please contact me at Catherine.soffronoff@lnf.com or 202-352-4899 if you’d like to learn more about Central Parke at Victoria Falls, or other communities you could downsize into in the DC area.

Indoor pool at Central Park at Victoria Falls.  You an see the outdoor pool beyond it.

Thinking about Condo or HOA Fees

I work with many people who want to buy a condominium or townhome, often because they don’t want the trouble of caring for and maintaining a yard, and all that entails (mowing, snow removal, etc.).   Usually if you buy into a place with a management company (typically a condo or townhome), you will pay a fairly large condo or HOA fee.  It is rare that I see these fees under $300 a month.  These fees are not tax deductible, unlike your mortgage interest.  When thinking about buying a condo or townhome, you need to factor the monthly fee into your monthly payment, when trying to decide what you can afford.  So, high condo fees can sometimes depress what you might be able to buy.  They can also depress what you might be able to sell the condo for, when the time comes.  It is something to think about.

When you look at condo fees, it’s important to understand what they include.  A $300 dollar fee that only includes snow and trash removal, can be a worse deal than an $800 dollar fee that includes all utilities and your real estate taxes, in addition to the general services you would expect.  So, I wouldn’t necessarily advocate for a policy of only looking at homes with fees below a certain amount.  Look at each place you’re interested in separately, so that you can see what the fee includes.

Some examples of what the fee could include are a pool (indoor or outdoor), a fitness center, a party room, a rooftop deck, a 24-hour concierge, utilities, your real estate taxes, covered parking, etc.  Almost all fees include snow removal, trash removal, exterior building maintenance, and a master insurance policy for the building.  Many include water.   But think about what you want and what you will use.   If you buy a single-family home but are going to pay for a gym, a pool, and a lawn service, maybe what you'd pay would equal or exceed the condo fees of a place you’d like that has all of those things on-site or taken care of.

The other issue to think about is that condo fees rarely decrease.  They usually only go up.  They might go up very slowly over many years, or they might quickly increase.  When you put a contract on a condo or townhome, the sellers are legally required to order you a resale package (also known as condo docs) from the management company of the community.  These documents will tell you about the financial health of the community, how it is managed, the by-laws, etc..  They will detail what is covered by your monthly fee and what is your responsibility.   You have a certain number of days (it varies by state), to examine these documents and decide if you still want to follow through with buying the property.  It’s important to look carefully at these documents and ask the management company any questions that you have, before this time period ends. 

This article in the Washington Post does a good job of detailing how condo fees can get out of control with buildings that are old and need a lot of maintenance.  https://www.washingtonpost.com/local/md-politics/condominiums-in-crisis-financial-troubles-put-many-communities-at-risk/2016/09/17/07ba32ac-6972-11e6-ba32-5a4bf5aad4fa_story.html?utm_term=.3539c8333cdf

In the end, a condo might be the right fit for you.  But make sure you do your homework before you buy.

Steps to Buying a Home

1. Find a Real Estate Agent to Represent You

It can be intimidating to know where to begin when thinking about buying a home.  The first step is to find a good real estate agent!  If you think you might like to work with me, please give me a call or send me an e-mail.  I can come and meet with you and we can get to know one another, and see if we would be a good fit.  You can also meet real estate agents, and get a feel for working with them, at open houses.  Or, you can ask around for referrals.  If you don’t live in the DC metro area, feel free to contact me and tell me what you’re looking for in an agent, and I’ll do my best to connect you with a good one in your area.

2. Get Pre-Approved for a Loan

Your real estate agent can recommend to you good loan officers that you can contact about getting pre-approved for a loan.  In order to get pre-approved for a loan, you’ll need to provide the loan officer with various financial information so they can see how much money you are qualified to borrow.  They’ll want to see pay stubs, W-2s, bank account statements, etc.  They will be looking at your credit score, your debt-to-income ratio, what funds you might have for a down payment, etc. to decide you if can qualify for a loan.   There are many programs available to help people buy a home, so don’t assume you won’t be able to qualify for a loan.  Once you qualify, you’ll know how much you can afford to spend on a home, and you’re ready to get out there and start looking!

3. Find a Home you Want 

Once you’re pre-qualified for a home, you can start house hunting!  Think about how many bedrooms and bathrooms you want and need, and where you might want to live.  Think about what you want to spend (it might very well be less than what a bank or mortgage broker says they will loan you).  Then, get out there and start looking.  Keep an open mind, and be prepared for the possibility that you’ll change your mind about what you want in a house and where you want to be.  Sometimes you have to see several homes to better narrow down what you want.  I recommend not seeing more than 4 or 5 homes at a time, so that you can keep them straight in your head and not get overtired.  I also recommend thinking critically about each home as you finish looking at it.  What did you like about it?  What didn’t you like?  How would you rate it on a scale of 1 – 5?  I’ve had buyers buy the first house they looked at, and I’ve had buyers who have looked for years without buying anything.  But in general, once you’ve seenaround 15 homes, you should have a good idea of what’s out there in your price range, and know when you’ve seen something you really like.  Then it’s time to…

4. Write an Offer

We are currently (as of my writing this in March 2017) in a seller’s market.  That means if you find a home you really like, chances are there are several other buyers who feel the same way about the home.  So, by having the pre-approval letter already, you can write an offer on a home you like right away.  Your realtor can look at comparable homes and help you figure out whether the home is over or underpriced.  They can help you structure your offer in such a way as to be competitive with other offers as possible.  And they can help you decide what contingencies you should place into the contract (like home inspection, financing, and appraisal contingencies).  They also help sell your offer to the selling agent and the sellers.

5. Work through the Contingencies

Usually when you buy a home, your agent will put into the contract that you will do a home inspection within a few days of the sellers accepting your offer.  This is a blog topic on its own, but basically you want an inspector to check and make sure there are no major issues with the home you’re buying.  If issues do come up, you can either ask the seller to fix them, or cancel the contract.  If you’re getting a loan, you’ll also need time built into the contract to make sure your loan is secured, and time to get the home appraised and make sure the home is worth the money you have offered for it (the appraisal is done by a professional appraiser).   If it’s a detached home (not a condominium), you should also get a termite inspection.  In general you need at least 30 days from the time a contract is accepted until you can close on and move into a house, because you need to have time for these contingencies.

6. The Walk-through

Within a few days of settlement, you’ll walk through your new home with your agent and make sure everything looks the same as it did before (generally at the time you did the home inspection, though it’s flexible as to what “before” you are specifying).  You want to make sure the seller didn’t take anything that was supposed to stay with the house, that everything is still in working order, and that it is cleared out and “broom clean.”  This is just an extra step to make sure no adjustments need to be made before settlement. 

7. Settlement

This is the day you officially get the keys to your new home!  Most settlement companies now expect the money for the home and your closing costs (closing costs include taxes, title, deed, and loan charges, generally about 2 to 3% of the price of the home) to be wired to them the day before the settlement.  They will tell you exactly how much you owe (cost of the home plus closing costs) about 3 business days before you go to settlement.  So, at the settlement itself, you are just signing all of the relevant paperwork—there’s a lot!—and getting the keys for your new home.  Often, in these days of e-mail and texting, it’s the first time you will meet the sellers of the home, though sometimes they’ve arranged to settle at a different time or do their signing through the mail, if they’ve already moved away.  In any case, this is an exciting day!  Plan to spend about an hour at settlement.  Then, you officially own the home and you can move in whenever you like!

Leisure World of Maryland

Leisure World

Leisure World is the only 55+ community in Montgomery County, MD.  It’s located about 10 minutes north of the last stop on metro’s Red Line (Glenmont), and is about 30 – 45 minutes north of downtown Washington, DC by car.  It is a very popular place for seniors in the area to live.

In order to live in Leisure World, at least one homeowner must be at least 55, and any other person living with the homeowner must be at least 50.  There are more than 8000 residents in Leisure World, living in a variety of homes, from 1 bedrooms in high-rise buildings to 3 or more bedrooms in large detached homes.  Prices range from the low 100Ks to the 500Ks or more.  Every homeowner must pay a monthly homeowners association fee (which varies according to where you live), which includes basic cable tv, utilities, real estate taxes, snow removal, trash removal, yard care, and much more.

What else does the fee include?  There are two clubhouses on the property, which house 3 restaurants, a fitness center, several indoor pools, an outdoor pool, an auditorium, game rooms, meeting rooms, and a ballroom.  Outdoor activities include tennis courts, shuffleboard courts, lawn bowling, bocce, and croquet.  There is also a beautiful 18-hole golf course and a driving range.

There is a medical center right on campus, with various doctors and nurses (and they take lots of different insurance plans).  There is also a bank and a post office, and a shuttle system that brings you all around Leisure World.  Right outside the Leisure World gates is a shopping plaza with a grocery store, a beer/wine/liquor store, and several restaurants, among other things.

Within Leisure World there are tons of clubs and activities to take part in.  There are card-playing groups, drama and comedy clubs, political organizations, service organizations, gardening clubs, art groups, book clubs, etc.  It is easy to make friends and stay busy at Leisure World.

It’s important to note that Leisure World is not an assisted-living community.  Residents can bring in their own home health aides if they wish, but if they need care above and beyond what they are able to bring in, they might need to move to an assisted living community (there are several nearby ones, if residents don’t want to go too far from the friends they’ve made at Leisure World).

If you’d like to learn more about Leisure World, or see what’s available there, please feel free to contact me!

If Elderly or in Poor Health, Consider Moving BEFORE Putting Your Home on the Market

This past fall, I was showing homes to a couple who were looking for a bigger home for their family.  We went to go and see two homes on the same street that were the exact same lay-out and design (this happens a lot in the DC area).  The price of the homes, however, was 150K different, and we were curious as to why.  The first home was vacant and the kitchens and bathrooms had been redone.  That was the higher-priced home.  They liked it a lot.  We went into the second home with high hopes that they could buy it for a lot less and redo what they wanted to redo in their own style and taste.

The agent of the second home had told me that the seller would be home, along with a housekeeper.  There were no cars in front of the home, but we knocked several times and waited.  Then we decided the seller must have left for the showing, and I used the key from the lockbox to enter the home.  I called out “Realtor! Hello?” when entering, as I always do in an occupied home.  No answer.

This home was obviously lived in, and nothing had been done to prepare the home for sale.  There were mounds of papers and knick-knacks piled on every available surface.  The house was dark.  My buyers felt ill-at-ease, but wanted to give the place a chance.  After a few minutes of looking at the kitchen and family room, one of my buyers headed down the hall to look at the bedrooms.  She came back in a terrible hurry.  “There’s a man in the bed back there!” she whispered.  The buyers immediately wanted to leave, so we did.   Out in the front yard we ran into the “housekeeper” who was actually a home health aide.  She had left for a few minutes and was just returning.

The listing agent for this home was obviously not used to working with elderly clients.   Rather than simply telling me someone would be home, she should have explained the situation to me, i.e. there’s a bed-ridden man living there and he will be in such and such bedroom.  Then I could’ve prepared my clients and it wouldn’t have been such a shock.  Also, she had said the house would be messy, as they were preparing for an estate sale.  I think it would’ve been better to do the sale and then put the home on the market.  It is very hard for most buyers to look past a ton of clutter in a home.  It is not an advantage to put a home on the market a few weeks earlier in the fall if the home is not really ready to be shown.

Perhaps it just wasn’t financially feasible for the man to move (I assume to an assisted living or long-term care community) before the house went on the market.  But most of the time someone can swing a couple of months of a house payment (if there’s still a mortgage on the home), and a couple of months of assisted living.  Then, they don’t have to worry about leaving any time the home is shown (which is extremely hard for many elderly or ill people).  And they don’t have to worry about being home when buyers are coming to look at the home, which is an awkward situation for everyone.  Also, the house is likely to be empty, or at least emptier, which will show much better than a cluttered home.  As at the listing agent, if an elderly person is still living at home, I am very reluctant to move any furniture around for staging purposes, because I don’t want them to trip and fall because of the new furniture arrangement.

In the end, I think the elderly person makes up for briefly paying for the old home and the new home at the same time, because the home they’re selling will sell faster and for more money if it isn’t cluttered and no one is home during the showings.  So if you or a loved one is in the situation where you need or want to move, consider moving before your home goes on the market.

If you have any questions or would like to talk further about this or other senior moving issues, please contact me at Catherine.S@lnf.com or 202-352-4899.

Brightview West End - Coming Soon

Brightview is opening a new senior living community in the heart of downtown Rockville.  It will open in August 2017.  A few weeks ago I met with Wendy Papuchis, the sales director, to learn about the lifestyle and service offerings the community has to offer.

Brightview West End will be walkable to many spots in downtown Rockville,including the library and the metro.  It will have four different retail spaces of its own that can be used by residents as well as customers from outside the community.  These include a café, a restaurant, and a salon.  The community’s goal is to integrate itself into the city of Rockville.  They hope to adopt a nearby elementary school and partner with them for various events.

There will be 195 apartments in total in the seven-story builiding.  The community will include independent living, assisted living, and dementia care floors.  There will be an underground parking garage for residents.  Independent living will be on floors 4 – 7, and the seventh floor will be a concierge floor, with 24-hour concierge service and a turn-down service each evening.  Assisted Living will be on floors two and three and include Enhanced Care, which is the highest level of care that assisted living communities can contain.

Brightview West End will be a leasing community.  There is no large entrance fee.  Residents will pay month-to-month, and simply need to give 30-days notice if they’d like to move out.  The monthly rent is all-inclusive and includes all activities, transportation, housekeeping and linen service, and a flexible meal plan (for independent living the rent includes 30 meals a month (lunches or dinners) as well as a meal credit at the café for breakfast or lunch.  Assisted Living and Dementia Care residents receive a full meal plan in addition to personalized care.  A nurse will also be available 24 hours a day.

I look forward to visiting Brightview West End again when construction has been completed!

Using a "Whole" Life Insurance Policy as an Alternative to Long-Term Care Insurance

When planning for retirement you may face many uncertainties. How much income will you need year to year? Will you and / or your spouse experience a chronic illness? Or will you die prematurely? Many people rely on life insurance to provide a death benefit. But, did you know that some life insurance policies can also provide “living benefits”? A “whole” life insurance policy can do several things:

(1) it can accumulate money over time that may be taken out tax free in retirement,

(2) it can provide an increasing death benefit for a surviving spouse, thus allowing a retiree to spend and enjoy more of their wealth during retirement and

(3) a portion of the death benefit may be “accelerated” and used for costs associated with a critical / chronic illness.

If none of these scenarios arises, the death benefit can be used to leave a legacy to family, friends, or favored charity / education institution. Multiple solutions from one policy can simplify family finances and add value.

Using an accelerated death benefit to pay for costs associated with a chronic illness is an attractive feature for many retirees. Chronic illness onset and severe cognitive impairment are age‐related conditions – about 40% of those over age 85 have some form of cognitive impairment. It is estimated that by 2020, 81 million people (the majority older than age 65) will have two or more chronic conditions. The financial burden of care can be significant for family members and Medicare / Medicaid rules related to long term care are complex.

A life insurance policy with a long term care supplement can help a family cope with the costs of a chronic illness. Rather than spend from accumulated wealth ‐‐ IRAs, 401ks, investments – policy owners can simply take an “advance” on the death benefit.

Although rare, chronic illness can strike at a younger age. This long term care benefit is available to policy owners beginning at any age and can be accessed quickly and easily by completing a simple claim form. Many features make a life insurance policy more attractive than a long term care insurance policy. A “whole” life insurance policy has a guaranteed fixed premium for the life of the policy, whereas long term care insurance policy premiums may not be guaranteed fixed and can become unaffordable over time. Also, some owners of long term care insurance may never actually use the policy – and premiums paid will have been “wasted.” A “whole” life policy will always pay out – either for long term care, as a death benefit, or as a source of income in retirement.

This has been a guest post by Kathleen Finn, CFP®, EA.  If you'd like to learn more about this topic, please contact Kathleen at  kath@kfinnfinancial.com / 202-262-6085

Five Star Premier Residences of Chevy Chase

A lounge in the Five Star Premier Residences of Chevy Chase

During the first week of January, I got the opportunity to tour the Five Star Premier Residences of Chevy Chase.  It’s located on Connecticut Avenue, just inside the beltway.  Cindy Miller, a sales counselor there, was my able tour guide.  Cindy has worked at Five Star for more than 22 years!

Five Star is a high-rise apartment building with one floor of assisted-living apartments, and the rest independent-living apartments.   The independent-living floors have four different floor plans to choose from- a one bedroom, a one bedroom with study, a one bedroom with den, or a two bedroom apartment.  Despite its location close to the city, many of the apartments have gorgeous wooded views of the property, or of their neighbor, Columbia County Club.  Five Star is a leasing community—rates currently run from around 4,000 a month up to about 7,700 a month, depending on the size of the apartment.  There’s a one-time community fee (currently $4000), when you move in.  As with most senior leasing communities, residents can choose to move out with only 30 days notice.

Five Star has many different amenities located in the building.  There is underground parking, an indoor pool, a beauty salon, a convenience store, an arts studio, a fitness center, and more!  There’s a health center where doctors and physical therapists make regular visits to see residents.  Independent Living has 24-hour concierge service available, and bi-weekly linen service and housekeeping.  In order to make sure their independent living residents are safe, there are motion detectors in each apartment, as well as pull cords.  Residents can also wear a pendant that has a button to push if they need help.  Breakfast and dinner are provided daily to all residents in Five Star’s lovely dining room.  Residents can also purchase lunch there, or choose to make their own lunch (as each apartment has a full kitchen).  There is also a full calendar of activities and trips so that residents have lots of options for things to do.

The indoor pool at Five Star

Assisted Living is one floor in the building, and is generally filled by residents who need to move there from independent living.  Assisted living residents can no longer live on their own safely, but also do not require complex, round-the-clock medical care.  They are provided with assistance with the activities of daily life, such as personal care, transportation, and medication reminders.

A unique option that Five Star offers is a chance to try out life there without making a commitment.  They have a couple different furnished apartments available for someone that might want to come and live there for a month to see if it’s for them.  The person can stay for a month (and pay the month’s rent), and then decide if they’d like to move there permanently.  I’ve met so many people who have a loved one who they think would be happier in a senior residence, but their loved one is reluctant to give up everything they know for the unknown.  This is a great way to give someone a taste of life in this community without them having to make an immediate commitment.

Finally, I should mention that I got to have lunch in the dining room, and the food was delicious.  I had a greek salad and a brownie sundae(!) but there were many options available.  Five Star’s head chef formerly was a chef at Jaleo in the District.

For more information or to schedule a tour, please go to www.fivestarpremier-chevychase.com or call 301-915-9217.   Or, if you’re thinking of downsizing and just want to discuss your options, feel free to contact me!

55-Plus (Active Adult) Communities in the Washington, DC Metro Area

There are so many options of where and how to live once you become a senior.  I’ve already written lots of posts detailing different independent and assisted living communities in the area.  I’ve also written about senior villages, which offer you a way to stay in your home or move to one-level living in a mixed-age neighborhood, but still be able to take advantage of activities and resources for seniors.  Now I’d like to examine more closely the 55-Plus (or Active Adult) Communities in the Washington, DC Metro Area.

55-Plus communities are for seniors who are in reasonably good health, and can live independently.  At least one owner or resident must be 55 or older in order to qualify to live in a 55-plus community, and many have rules that prohibit children from living in the community.   55-plus communities offer seniors a way to be free of many home maintenance chores, to enjoy convenient classes, groups, and amenities that are aimed at them, and to make new friends with other like-minded people.  Typically people would buy a home (or condo) in a 55-Plus community just like they would buy a home in a multi-age neighborhood, but the home association or condo fees are higher, in order to pay for the many amenities and services available in the community.  There are also usually rentals available in 55-Plus communities, by individual owners.

I live in Montgomery County, MD, and many of the people around here are under the impression that there are no 55-plus communities in the area, other than Leisure World in north Silver Spring.  There are actually lots of 55-plus communities in this area, but they are almost all 30 minutes or more from downtown Washington, DC.  I will cover many of the communities in detail in future posts, but for now I just want to give you an overview of where they are.

In Maryland, there are 55-plus communities located in Silver Spring, Ellicott City, Laurel, Columbia, Odenton, Annapolis, Gambrills, Fallston, Marriottsville, Elkridge, Jessup, White Plains, New Market, Dowell, Bel Air, Waldorf, Catonsville, Severna Park, Frederick, Upper Marlboro, and Edgewater.  As of now, there are at least thirty-five 55-plus communities located in the Washington-Baltimore Metro Area in Maryland.  In the Metro Washington DC area in Virginia there are at least twenty 55-plus communities.  They are in Fairfax, Woodbridge, West Springfield, Sterling, Lorton, Manassas, Ashburn, Bristow, Dumfries, Gainesville, Haymarket, Lansdowne, and Warrenton.

So, if you are willing to live in the suburbs of Washington, DC, there are a huge number or 55-plus communities to choose from.  Please contact me with any questions or if I can help you begin a 55-plus (or other) home search in the DC area.

AlfredHouse

The lobby of House 5 at AlfredHouse.

Shortly before the holidays I toured several homes of AlfredHouse, a boutique assisted living community based in Rockville, MD.  AlfredHouse provides care for people experiencing aging cognitive challenges such as dementia, Alzheimer’s and Parkinson’s.  Rhonda Thomas, the Marketing and Family Relations Director, was my enthusiastic and able tour guide.

AlfredHouse is somewhat unique in that it’s actually made up of a series of small homes—it is not one big building or complex.  There are six homes in Rockville, two homes in Silver Spring, and one home in Derwood, with another under construction.  These small homes have a more intimate, family-like feel than larger assisted living communities often do.  That might make them a better fit for some people who are suffering from cognitive decline.  The homes range in size from those that have 5 apartments, to their newest home, under construction, which will have 34 apartments.  The apartments come in a range of different sizes and layouts.  All of AlfredHouse’s homes have a staff-to-resident ratio of 1 to 4, so there is plenty of personal care and attention for each resident.  There are daily activities for all residents, as well as home-cooked meals and snacks.

While at AlfredHouse, I was able to tour their newest (under construction) home, which is called Symphony House.  Symphony House is unique in that it is designed for elderly people who have mental health challenges as well as cognitive challenges.  Its design tries to incorporate as much natural light as possible.  There will be a therapy room to deliver music, light, and massage therapy to residents.  AlfredHouse will partner with CounterPoint Health Services, a leading behavioral health and memory care provider, to provide care to residents.  Symphony House will be opening in early 2017.

There are large windows in each apartment of symphony house to bring in an abundance of natural light

Before leaving I was able to spend some time with Dr. Veena Alfred, the founder and Chief Executive Officer of AlfredHouse.  Her passion for AlfredHouse and its mission was evident.  AlfredHouse is definitely worth a look if you or a loved one might prefer a smaller-scale assisted living community, with an emphasis on a high staff-to-resident ratio.

Why Your Trust Should Own Your Home - A Guest Post by Anthony Carducci, Esq.

Ways to Own Your Home

When you buy a house, you can title (i.e. own) your home in different ways, but each has its own advantages – and disadvantages that you, as a homeowner, should know. You can own the home in your name, with your spouse, or with someone(s) else. Here I shall discuss the pluses and minuses of when more than one person owns a home. When you own the home with another person and you each own 100% of the home, we call that joint ownership. Owning your home with your spouse (tenants by the entireties) is a form of joint ownership. When you own 75% of the home and someone else owns the other 25%, for example, that is known as owning the property as tenants in common. Each of these forms of ownership has drawbacks. First, if you own the home jointly with someone, the home is subject to creditors of either party. So, if your friend gets into a car accident, is sued and loses, the winner of that lawsuit might be able to force a sale of that home. Also, all of the owners have to agree to any proposed use of the property. Second, if all of the owners pass away then the house will go through probate. Probate is a lengthy process (at least nine months in Maryland) where creditors or unhappy friends/family can sue your estate. Additionally, the person in charge of your estate has lots of confusing paperwork to complete and file with the court under tight deadlines all while grieving over your passing.

What can you do to avoid these problems?

Consider a Trust

A trust is very similar to a Limited Liability Company (LLC) or a corporation. The trust is simply a way of holding assets and determining what happens to those assets in the future. Usually, the trust is designed so that children, loved ones, or a charity will benefit from the assets in the trust at some point in the future. The trust is managed by a trustee, who is usually the initial creator of the trust.

You should have your trust own your home because the trust protects the home and your other assets from probate. If the trust is structured properly, you might be able to eliminate capital gains tax on the sale of your home. An additional reason to move your home and other assets into your trust is to ensure that your children or loved ones inherit these assets and do so at the right time. One of the worst things that parents sometimes do is to leave their assets for their kids to receive all at once, and then they inherit when they are too immature to handle those assets.

If you are considering buying a home, you should speak with an attorney who specializes in trusts first so that we can properly establish your trust before you buy the home. Why? Because you are paying for the title company to properly list the owner of the home on your deed. If your trust is established before you buy the home, you can have the title company list your trust as the owner. If you buy the home in your name and then want to put your home into your trust, perhaps five years later, you will have to pay for a deed a second time.

In summary, the best way to own a home is in your trust. Through a trust, you can ensure that your heirs inherit the home at an appropriate time for them. A trust enables you to avoid probate and, in some situations, protect the home against creditors. Please give me a call (240-235-5070) or send me a note (anthony@carducciandbraggs.com) if you would like my law firm to help you find an ideal solution for owning your home.

Walkable Communities in the Washington, DC Metro Area

Many people I’ve talked to want to downsize from the home where they raised their children, but they don’t yet need the extra support of a Continuing Care Retirement Community or an Assisted Living Community.  Many active seniors want to move to one-level living and be within easy walking distance of lots to do.  They are thinking ahead to when stairs and driving might become difficult, but they also just want to really enjoy their retirement and/or empty nests.

In the DC area, there are many places that also have active Senior Villages.   You can follow the link to read my blog about these (specifically the Capitol Hill Village), but basically, these are organizations that offer plenty of clubs and activities for seniors, in addition to volunteers who can help or support seniors when necessary.  So, what areas in the greater DC metro area might be a good fit if you’re looking for these things?

In Maryland, the metropolitan centers of Friendship Heights, Rockville, Bethesda, and Silver Spring all fit the bill.  They each have walkable areas that include grocery stores, restaurants, and shopping.  They all have metro stops.  They also each have senior villages (Rockville's is currently being developed), or community organizations that act as senior villages.  The cost of real estate in these areas does vary somewhat, with Friendship Heights and Bethesda being more expensive, and Silver Spring and Rockville being less so.

Washington DC itself has many walkable areas, of course, and it would be hard to narrow down your options to just a few.   But the areas with active senior villages include Capital Hill, Cleveland and Woodley Park, Dupont Circle, East Rock Creek, Far Southeast, Foggy Bottom West End, Georgetown, Glover Park, Mount Pleasant, Waterfront, Palisades, and Northwest.  If you’re thinking about living in DC itself, it might help to narrow down your options by thinking about what you most like to do.  Waterfront is a great area if you want to go to a lot of Nats games, Capitol Hill and Foggy Bottom are great if you want to go to museums frequently, etc.

In Virginia, the walkable areas in Arlington include Ballston-Virginia Square, North Rosslyn, and Courthouse-Clarendon.  In Alexandria, the King Street Metro/Eisenhower Ave, Old Town, and Braddock Road metro areas all earn top marks according to Walkscore.com.  There is an Arlingon Neighborhood Village and an Alexandria Senior Village, in addition to other senior villages in Northern Virginia.

So, there are definitely lots of options for people in the DC Metro Area who want to downsize and move to a more walkable community.  I’ll examine some of these areas more closely in future blogs.  Also, this is by no means an exhaustive list, so feel free to send me an e-mail if you think I've left an area out.  

Please let me know if you’re thinking of downsizing and buying in a walkable community.  I’d be happy to help!

Top Five Tips to Begin Downsizing

Often I meet with people who know they want to move to a smaller place, but they’re totally intimidated by how much stuff they have.  They know they need to begin going through their things and paring them down, but they just don’t know where to start.  If you’re in that situation, here are some tips for getting started.

1.    Start with the smallest or least-used room in your house.

There are two reasons behind this.  First of all, it is less intimidating than starting with a large room, or a room you use a lot.  Secondly, once you have finished the downsizing process in that room, you can use it as a storage space for boxes, etc. that you’ve packed, without disturbing your daily life or routines.

2.    Make a realistic daily goal for yourself

The hardest thing about downsizing is getting started.  Make a daily goal to get yourself motivated.  Tell yourself that you will do one drawer a day.  Or that you will work on downsizing for half an hour a day—something like that.  Make sure it’s a realistic goal, so that you can really stick to it.

3.    Divide your things into three piles

The three piles I recommend are keep, throw out, and give away.  You might decide to have two give-away piles—one for charity and one for items you want family or friends to have.  Don’t let yourself have a maybe pile!  Try to touch everything just once, and make a decision that way.  I should add that if you think you have a number of things that could be valuable, don’t hesitate to call in an estate sale person and ask their opinion on your possessions.  I know of some great estate sale people or organizers who can help you determine if it might be worth it to sell some of your things.  Feel free to contact me for more information.

4.    Remember your Motivation

For many people, the main thing that stops them from moving to a smaller place is not wanting to let go of their possessions.  Even knowing they might be happier in a home with no stairs or in a senior living community is not enough to help push them to pare down their things.  Don’t let your possessions weigh you down.  Allow yourself a small box of sentimental items, but beyond that, consider giving the things that are sentimentally important to you to family or friends.  Remember, you will have to pay to move everything you decide to keep. By letting go of things, you will have a cheaper, easier move, and have more room for living in your new place.

5.    Clear as you Go

As you sort through your things, store packed boxes you plan to move in the rooms you have finished packing.  But make an effort to put the throw-out pile by the curb once a week.  Give a bag to charity as soon as you fill it.  Have a family-and-friends get together where you display all of the things you’d like them to have and let them choose what they’d like (have them pick numbers and pick things in turn if you don’t have specific people in mind for each item).  Seeing your rooms looking cleaner, more organized, and emptier will serve as continuing motivation for you to keep downsizing.

If after reading these five tips you still can’t get started, consider hiring a professional.  An organizer, senior move manager, or estate sale person can come in and help you decide what to keep, sell, or throw away.   If you’re not sure that you want to hire someone, it doesn’t hurt to bring in someone and talk to them about what they could do to help.  Then you will have a better idea of where to go from there.  I am also always happy to come and meet with you in your home to help give you an idea of how to get started or whom you might want to bring in to help.  Please don’t hesitate to contact me.  Good luck and happy downsizing!

Olney Assisted Living - Memory Care by Design

Earlier this month I was able to tour Olney Assisted Living with Rhonda Thomas, their Marketing and Family Relations Director.  Rhonda was extremely knowledgeable and friendly, and would be a great resource for anyone who wants to learn more about Olney Assisted Living.

Olney Assisted Living is an all-memory-care community.  Its Executive Director is a Certified Dementia Practitioner.  It has 64 beds in total.  The Community is divided into four houses, with 16 residents each.  Each house has its own dining area and lounge.  There is 24-hour nursing care, and programming throughout the day to keep residents active and engaged.

Olney Assisted Living is somewhat unusual in that 60% of its residents are male, and there are quite a few residents there with early onset dementia.  They have great, secured outdoor space to make sure the residents are getting the exercise and fresh air that they want and need.  There is a walking path, and even an outdoor putting green.

Outdoor Putting Green at Olney Assisted Living

Olney Assisted Living is a fairly new community—it’s only been open for a couple of years.  So the building and facilities are in great shape.  It’s a leasing community, meaning you don’t have to buy anything to live there.  You just pay an initial community fee (currently around $4500) and then pay monthly for your apartment and care.   There is also a respite stay program, where you can have a loved one stay there for two weeks to a month.

Many thanks to Rhonda for taking the time to meet with me and show me around the community!

Brighton Gardens

Outdoor seating area at Brighton Gardens

Last week I had the pleasure of touring Brighton Gardens, an assisted living community, with Sue Erim, the Director of Sales.  Sue has been at Brighton Gardens since it became a Sunrise Senior Living Community thirteen years ago.  Her love of the community and passion for seniors was obvious throughout the tour.

Brighton Gardens has 106 assisted living apartments and 24 memory care apartments (those are located on a special memory care floor).  There are seven floors, but each floor has a large terrace, and there is common outdoor space on the first floor (there are even raised garden beds for residents to use).  Many of the residents are still very independent.

An outdoor terrace at Brighton Gardens

Perhaps the most special thing about Brighton Gardens is its location.  It is located in the heart of Friendship Heights.  Residents can easily walk to grocery stores, restaurants, and the metro.  It is also right next door to the Friendship Heights Village Center.  The Village Center is a community center for all ages, but many of the activities reminded me of what senior villages offer.  Books clubs, exercise classes, lectures, concerts, etc. go on there every day of the week.  Brighton Gardens has its own vast array of offerings, but if residents want to go off site, they merely need to go next door for lots more to do, with people of all ages.

There is a farmers market at the Village Center on Saturday mornings, and outdoor concerts every Wednesday when the weather is nice.  If residents are unable to walk to the concerts, Brighton Gardens will even bring them out in their wheelchairs.  Shuttle transportation to various places is offered through the Village Center and through Brighton Gardens.

Brighton Gardens is a leasing community, meaning there is no buy-in to live there.  You can rent an apartment month-to-month.  There is an initial one-time move-in fee of $7500.  The monthly fees were very similar to other places I’ve visited—base rent starts around $7000 a month (the exact rent depends upon the size of the apartment), plus extra monthly fees for residents that need extra help.  The base rent includes three meals a day, afternoon social hour, weekly housekeeping (plus daily making of the bed and emptying trash).  There’s also a weekly towel and linen service.

There’s an emergency lifeline pendant provided to each resident, and RNs and LPNs are in the community twenty-four hours a day, seven days a week.  The daily bed-making and trash emptying service has the added benefit of someone checking on residents in their apartments in an unobtrusive way every single day.

All kinds of doctors and therapists come to Brighton Gardens, so that residents don’t need to leave the community for doctors’ appointments.  They even have a lab come twice a week for residents that need bloodwork or urinalysis.  Even if a resident is nearing the end of his/her life, they are able to bring in hospice to help care for the resident, so that the resident doesn’t have to leave the community.

Brighton Gardens offers great assisted-living amenties, while its location allows one to still be quite independent.

Senior Villages - Capitol Hill Village

Have you heard of senior villages?  They are usually organized around neighborhoods.  Their purpose is to help seniors who want to age in place.  For a yearly membership fee—which is typically a few hundred dollars—the village coordinates volunteers that can help seniors.  The senior can have a volunteer drive them places, go to the doctor with them, or even help around the house.

Villages also typically have social and education components to them.  They organize talks, book clubs, and other get-togethers to keep seniors socially connected and intellectually stimulated.  There are currently 190 villages across the country, and 48 of those are in the Washington, DC region.

Last week I had the pleasure of meeting with Molly Singer, the Executive Director of Capitol Hill Village, which is the second-oldest village in the country (the oldest village is in Beacon Hill, in Massachusetts).  Capitol Hill Village has over 400 members, and is located, of course, in Capitol Hill, in Washington, DC.  There are two full-time social workers at Capitol Hill Village.  They visit seniors at home or in the hospital, and help make sure that their needs are met.   Molly told me that there are even four members of Capitol Hill Village that are over 100!  They are still living at home, and are able to age in place.

Various village members head up different social and educational options within the village—there is a group that goes out to dinner, a walking group, several book clubs, a travel club, a group that goes to see plays together, etc.  The list is only limited by what groups members want to organize.  Here’s a photo of the July calendar, just to give you an idea of what is offered.

In Montgomery County, I know of senior villages in Bradley Hills, Burning Tree, Cabin John, Chevy Chase, Potomac, Silver Spring, Kensington, and Takoma Park, among others.  If you’re interested in learning if where you live has a village, you can look here: http://www.montgomerycountymd.gov/HHS-Program/ADS/Villages/villageslist.html, http://dcgis.maps.arcgis.com/apps/webappviewer/index.html?id=cd1880a5e3d44b128116622f25676df1, or just google your county or city and the phrase senior villages and see what comes up.  If your area doesn't have a village, maybe it's time you started one!

Why Use a Senior Real Estate Specialist, Part 2

Part of the reason I chose this specialty is based on my own experience, and learning of the experiences of others.  There is a real need for senior real estate specialists.   I gave one example here.  This is another example from my own family.

My husband’s grandparents lived into their nineties, and when they were in their mid-eighties, his family realized they needed the help that only an assisted-living senior community could provide.  My mother-in-law was their only child, and she lived a distance away.  Her parents were insistent that they didn’t want to move at all, but if they had to move, they wanted to stay in their town. They wanted to stay near their friends, and what they had always known.

But what ultimately happened is that they outlived their friends, and they were almost two hours away from their daughter.  This left them very isolated.  Their daughter did her best, driving to see them at least once a week, but it was a tough situation.  If they had used a senior real estate specialist when selling their home, they might have been able to hear about similar things happening to other people, and been able to make a more informed choice about where to live.  The senior real estate specialist might have been able to add a neutral third perspective to the situation, and been able to talk to my husband’s grandparents and help them see why it might be important to live near their daughter.

This is not a situation where the home sellers or their children would usually think to call in someone for advice.  If you’ve never been through the situation before, how would you even know to think through common pitfalls?  So it’s very helpful if the real estate agent selling the family home knows and has experience with common problems that might crop up when downsizing.

If you live in Maryland, DC, or Virginia, I’d be happy to work with you.   If you don’t live in my area, I’d be happy to refer you to a senior real estate specialist in your area.  Please give me a call or e-mail me if you’d like more information.

Forest Hills of DC

The courtyard at Forest Hills of DC

A few weeks ago I was able to tour Forest Hills of DC, a not-for-profit assisted living,  rehabilitation, and long-term care community located in NW, off Connecticut Ave.  Jennifer Brown, the Director of Admission and Marketing, was my tour guide.   Forest Hills also has another community called Forest Side, which specializes in Memory Care.  It is located nearby on Military Rd.  Forest Hills of DC was founded in 1926 as the Methodist Home of DC, though it is no longer affiliated with the Methodist Church.

Forest Hills is a leasing community, meaning residents pay by the month to live there, rather than buying into the community.  There are 57 studio, one-bedroom, and three-room assisted living apartments in the community, as well as 50 long-term care beds.    On-site services and amenities include a library, a full-service beauty salon and barber shop, a gift and convenience store, a professional clinic, including a furnished dental suite— and a well-equipped fitness and rehabilitation center.

Its location is ideal for residents who want to enjoy city living, as it’s an easy walk to restaurants, a pharmacy, and a bookstore.  There are also regularly scheduled trips to see and do things in the city.  As with the other assisted living and long-term care communities I’ve visited, there’s a dining hall that serves three meals a day, and a calendar full of activities to keep residents as busy as they’d like to be. 

A unique feature of Forest Hills of DC is that the Northwest Neighbors Village is located there.  You may have heard of the village concept—they are basically organizations that cater to seniors who want to age in place.  So the Northwest Neighbors Village holds activities, classes, and talks inside the Forest Hills community, which means the seniors in the neighborhood get to mingle with the residents of Forest Hills and attend one another’s activities.

The long-term care section of the community is in the same building as the assisted living section, which makes it easy for residents to visit friends in one section or another.  It also means if an assisted living resident has to make a temporary or permanent move to the long-term care part of the building, they don’t have to go far or get used to a new place.

I enjoyed touring Forest Hills of DC very much, and I appreciate all of the knowledge and time Jennifer Brown shared with me. 

A living room in an assisted-living apartment at Forest Hills of DC

3 Questions to Ask When Touring a Senior Living Community

I’ve had enough experience touring senior living communities, and speaking with people who’ve had experience living in them, that I thought it would be helpful to share a few questions I think are important to ask when touring a community.  These might be less obvious than the questions that naturally come to mind.

1.    Do you have a way of making sure your residents are okay?

I have a sad personal story that motivates my asking this one.  My Grammie was living in an independent senior living community well into her nineties.  My parents lived very nearby and usually saw her several times a week, but they had been travelling.  When they returned, they called her for a couple of days but didn’t get an answer.  My Dad finally went over there and had the management key in, and they found her collapsed and unconscious.  Her neighbors and friends there felt terrible.  They had noticed her missing at meals for a couple of days but assumed she was just busy.  She had suffered a stroke.  She was able to partially recover but she was not the same.

Different places I’ve toured have different methods of checking to make sure residents are okay.  Riderwood has a lever outside of each door that security goes around and pushes down each night.  By mid-day the next day, a staff member walks past and checks to make sure the levers have moved (the doors have been opened).  If one hasn’t, they knock on the door and check on the person.  Kensington Park, Brightview Fallsgrove, and Brooke Grove each request that residents wear a pendant, and they can push a call button on it if they need help.  Forest Hills of DC watches to make sure everyone who is supposed to attend lunch or dinner is there.  If someone doesn’t come a staff member goes to check on the person.  Personally, I think it's important that even independent living communities have a way to regularly check on their residents to make sure they're okay.  Otherwise, it's not that much different than living on your own.

2.    What happens if a resident runs out of money?

If someone runs out of money and they’re elderly, Medicaid usually will kick in and pay for a bed in a nursing home.  But not every senior living community accepts Medicaid or has Medicaid beds.  And often, you need to already be living in a community in order to be given one of their few Medicaid beds.  So if you or a loved one might run out of funds sometime in the future, be sure to think through what your plan would be.  And don’t move into a senior living community until you understand how they deal with this issue.

3.    What if a resident want to move out?

Sometimes a senior moves to a senior living community and decides it’s just not a good fit. Other times a senior moves to a senior living community to be close to a relative, and then the relative moves away.  What happens then?

Some senior living communities are leasing communities, and some are buy-in communities.  Most leasing communities are fairly easy to move out of, but buy-in communities are sometimes not.  Understand what their policy is if you want to move out.  How much of your money would you get back?  How much notice do you need to give? 

•••

If you sell your home using a senior real estate specialist, he or she should be able to help you think through these kind of questions when planning your next move.  If you live in the Washington, DC area, and you're thinking of selling your home, please don't hesitate to contact me.  If you live outside the DC area and are thinking of selling your home, I'd be happy to help you find a senior real estate specialist in your area.