Many luxury homeowners in Philadelphia and South Jersey eventually consider two very different paths for downsizing: moving into an age-restricted 55+ community, or moving into a Life Plan Community, also known as a Continuing Care Retirement Community, or CCRC. The two are often confused, but they work in fundamentally different ways, and the distinction matters enormously when deciding whether, and when, to sell a long-held home.
What Makes a Life Plan Community Different
A standard 55+ or active adult community is, at its core, age-restricted housing — single-family homes, twins, or condos with amenities like clubhouses and golf, but no formal healthcare component built into the purchase. A Life Plan Community is structured around a contract that typically includes independent living now, with guaranteed access to assisted living, memory care, and skilled nursing later, often within the same campus, should the resident’s needs change. That continuum is the entire premise of the model: residents pay an entrance fee and ongoing monthly fees in exchange for housing plus a pathway through higher levels of care without having to search for a new facility during a health crisis.
How the Financial Structure Works
Life Plan Communities generally offer a small number of contract types. Some return a portion of the entrance fee to the resident’s estate; others do not. Some bundle healthcare costs into a fixed monthly fee regardless of the level of care needed; others charge separately as needs increase. Because these contracts are complex, legal and financial documents rather than simple purchase agreements, prospective residents should have an elder law attorney or financial advisor review the contract terms before committing, and should understand exactly what portion of the entrance fee, if any, is refundable and under what conditions.
Timing the Sale of Your Current Home
One of the biggest questions luxury sellers face is sequencing: whether to sell the family home before, during, or after moving into a Life Plan Community. Many communities require proof of financial resources as part of the application, which sometimes means a sale needs to be well underway before a resident can move in. Others allow a longer runway. Because entrance fees at the luxury end of this market can be substantial, many sellers use the proceeds from their home sale to fund some or all of the entrance fee, which makes coordinating the two transactions — the home sale and the community move-in — an important planning exercise rather than something to figure out at the last minute.
Where to Find These Communities in the Region
The Philadelphia area and South Jersey both have an established base of Life Plan Communities, ranging from campuses on the edge of the city to suburban and semi-rural settings in Montgomery, Chester, Delaware, and Bucks counties, as well as Burlington and Camden counties in South Jersey. Location matters for reasons beyond price: proximity to adult children, to a preferred hospital system, and to familiar social and religious communities often weighs as heavily as the physical campus itself.
What to Evaluate Beyond the Price Tag
Financial strength and management history of the operating nonprofit or company matter as much as the amenities. Prospective residents should ask for the community’s financial disclosure statements, occupancy rates, and how long the organization has operated in the region. It’s also worth touring at different times of day, speaking with current residents rather than only staff, and understanding waitlist timelines, since many desirable communities and unit types have multi-year waiting lists.
How This Differs From a Standard 55+ Move
If your primary goal is simply less maintenance and a lower-upkeep home while you remain fully independent, a standard 55+ community or a smaller single-family home may be the simpler and less expensive path. Life Plan Communities make the most sense for buyers who specifically want to lock in future healthcare access now, while they are healthy enough to qualify for entry, rather than waiting until a health event forces a faster decision under less favorable terms.
Preparing the Home You’re Leaving Behind
Because many long-held homes at this level come with decades of furnishings, art, and personal collections, sellers moving into a Life Plan Community often need more lead time for downsizing than a typical seller does. It’s common to work through what moves with you, what goes to family members, and what needs to be appraised, donated, or sold separately, well before the home ever goes on the market. Starting that process early, alongside a conversation with your agent about likely timing and pricing, tends to make both the sale and the move itself far less stressful than trying to compress everything into the weeks after a community accepts your application.
Frequently asked questions
What’s the real difference between a 55+ community and a Life Plan Community?
A 55+ community is age-restricted housing with no built-in healthcare guarantee. A Life Plan Community bundles housing with a contractual pathway to assisted living, memory care, and skilled nursing, typically in exchange for an entrance fee plus ongoing monthly fees.
Do I need to sell my home before I can move into a Life Plan Community?
It depends on the community’s financial requirements and the buyer’s own resources. Some communities require proof that funds, including expected home sale proceeds, will be available by a certain point; others are more flexible. This is worth clarifying with the community’s admissions team early, and coordinating closely with your real estate agent on timing.
Are entrance fees at Life Plan Communities negotiable or refundable?
Contract terms vary widely by community and contract type. Some plans refund a declining or fixed percentage of the entrance fee to the resident’s estate; others are non-refundable in exchange for lower monthly fees. Because these are legally binding contracts, prospective residents should have the terms reviewed by an attorney familiar with elder law before signing.
If you’re weighing a move to a Life Plan Community and need to think through the timing and sale of your current home, James Kennedy can help you map out a plan that fits your goals. Reach James at 215-267-8479 or jameskennedy@unlockedteam.com.
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