1. Retirement Housing Decisions

2. Housing Continuum Independent living for the healthy -Aging in place -Active adult community -Cohousing with friends or relatives More care: Continuing Care Retirement Community or continuing care at home Naturally Occurring Retirement communities (NORC) – independent living apartments where services are brought in. Assisted Living – for those who need extra care

3. Active Adult Communities Restricted by age eg. 55 plus Less expensive than current home or CCRC Do not provide healthcare options such as ssisted living or nursing care. Provide organized activities Provide Social Support –55+ (allows younger than 55) –62+ (does not allow under 62. What about caring for grandchild?)

4. Assisted Living ½ have dementia Average age is 83, female and needs some assistance with activities of daily living or dementia Shortage of staff and turnover because of job stress Hybrid arrangement. Healthcare aon assisted living.

5. Other Models Eden Alternative –More homelike, plants, pets, eating when you want, small clusters, caregivers act more as companions Beacon Place Models –Services are brought to client, people who live in the same neighborhood set up an organization that provides home care, transportation services and social services, people remain in own home without being socially isolated, no medical requirements.

6. Relocation Most do not want to move Move closer to children/grandchildren Move to ideal location (amenities relocation) Should consider: –Tax obligation (Consider tax on SS and pension income. No tax in Pennsylvania. IRS Pub 600 on locality tax.) –Cost of living –Services –Job opportunities for retirees –Lifestyle issues: cultural, recreational, transportation, healthcare, congenial, safety, climate, friends and family Retiring out of Country. Does not affect social security benefits.

7. Resources www.retirementliving.com National Association of Area Agency on Aging website –Eldercare locator – helps identify local community services –Senior housing locator (www.n4a.org)www.n4a.org Lending Age - non profit dedicated to aging with dignity including a directory of homes and services nationwide (www.leadingage.org) Village to Village Network – age in place (www.vtvnetwork.org)www.vtvnetwork.org Cohousing (www.cohousing.org)www.cohousing.org The MetLife Aging in Place Workbook: www.maturemarketinstitute.com

8. Taxes 1.No State Income Tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming) 2.Federal law preserves the client’s right to flee state taxes on 401(k) by moving out of original jurisdiction to a state that does not tax pension benefits 3.State Sales Tax: all but Alaska, Delaware, Montana, New Hampshire, Oregon 4.Inheritance Tax: Florida has no estate or inheritance tax 5.Nuisance Tax: real estate transfer tax, licensing fees 6.Look for relief provision for 65 or older, or income under a specific threshold, cushion for long term residents, tax deferral until property is sold or client dies, limit increases while property owner stays in place.

9. Tax Opportunities in Selling a Home Tax Code Sec 121 –$250,000 in gain (single) or $500,000 (MFJ) –Use test: Principal residence for at least 2 years during the 5 year period prior to the sale of the house –Ownership test: At least one spouse must own house 2 years in 5 preceding sale –If taxpayer is incapable of physically or mentally providing self care (eg. Moving to a nursing home), then the time spent in nursing home also counts. –Two year holding requirement once in any given 2 year period –Does not include vacation home