Reinstatement cost for retirement units

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fatsross

New Member
Good Morning

I am living in a church run organisation and concernment over reinstatement cost of unit when one either passes away or go into an aged care facility. The complex I am in they say the cost for this is around $82,000 but when we sell our unit this cost comes off of our settlement money but in their expenses they say the same amount. I can see why from the rented units they claim this amount.

Is this common practice in aged care retirement villages.
 

You don't say where you are. That can make a big difference. We are getting ready to move into a Retirement Community close to us and the "buy in" is in the 100's of thousands. They guarantee 100% of our "buy in" to be returned to our estate, or us - if we move out. We do not have to sell the unit - it is owned by the Community and they handle the sales. Most of these groups, usually, guarantee 85 - 95% back, keeping some for "refurbishment."
 
Please define reinstatement costs.

Does this mean when the person dies the landlords/owners need to renovate the unit and so they take the cost of that out of the deceased's estate funds, if they have any left?

Wow. How the heck do they legally finagle that? I guess they have the person sign something that says they are a co-inheritor to the estate?

In the U.S. we have something similar. If a person is on Medicaid (the medical insurance plan for the poorest and/or disabled) and they die, Medicaid can claw back some of what the system spent on the person's healthcare while they were on Medicaid.
 

fatsross said:
Good Morning

I am living in a church run organisation and concernment over reinstatement cost of unit when one either passes away or go into an aged care facility. The complex I am in they say the cost for this is around $82,000 but when we sell our unit this cost comes off of our settlement money but in their expenses they say the same amount. I can see why from the rented units they claim this amount.

Is this common practice in aged care retirement villages.
Click to expand...
I reside in Toowoomba Qld Australia
 
VintageBetter said:
Please define reinstatement costs.

Does this mean when the person dies the landlords/owners need to renovate the unit and so they take the cost of that out of the deceased's estate funds, if they have any left?

Wow. How the heck do they legally finagle that? I guess they have the person sign something that says they are a co-inheritor to the estate?

In the U.S. we have something similar. If a person is on Medicaid (the medical insurance plan for the poorest and/or disabled) and they die, Medicaid can claw back some of what the system spent on the person's healthcare while they were on Medicaid.
Click to expand...
I actually live in Queensland Australia. Reinstatement for units they actually take it back to bare boards and replace everything. I can't see the need for this myself as most unit are in very good condition when people pass over or go into aged care. Another way to make money. In our corporate fee we have to put money in for the reinstatement cost and also when the above happens the amount of reinstatement comes out of settlement cost. I call it double dipping myself.
 
fatsross said:
I actually live in Queensland Australia. Reinstatement for units they actually take it back to bare boards and replace everything. I can't see the need for this myself as most unit are in very good condition when people pass over or go into aged care. Another way to make money. In our corporate fee we have to put money in for the reinstatement cost and also when the above happens the amount of reinstatement comes out of settlement cost. I call it double dipping myself.
Click to expand...
If you write a letter or two to your local representatives about this, will it get laughed at?
 

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