What Families Ask Before Signing an Assisted Living Contract

Signing an assisted living contract is a significant commitment. The agreement governs how care is provided, how costs change over time, what happens if your loved one’s needs increase, and under what circumstances either party can end the arrangement. Families who review it carefully before signing avoid surprises later; families who sign without reading it sometimes face difficult situations they were not prepared for.

Here is what experienced families, and elder law attorneys, say to look at closely.

What the Base Rate Covers

The monthly rate is usually described as a base rate, but what that base actually includes varies considerably from community to community. Some communities include virtually all personal care in the base. Others include a minimal level of service and charge additionally for almost everything beyond that.

Before signing, ask for a written breakdown of exactly what is included in the base rate: number of meals per day, which personal care tasks, medication management, laundry, transportation, activities. Then ask what triggers an additional charge. If you get a vague answer, ask for the fee schedule in writing. A good community will provide it willingly.

How Care Level Changes Work

Ask directly: how does your community determine when a resident needs a higher level of care, and who makes that determination? What is the process for notifying the family? How much notice is given before the new rate takes effect?

The contract should describe this process, but the specifics matter. Some communities provide 30 days notice of a rate change; others provide as little as a week. Some use objective assessment tools; others leave more room for discretion.

Also ask: what is the highest possible monthly rate if your loved one’s needs become significant? Understanding the ceiling helps you plan.

Move-Out Conditions

One of the most important sections of the contract is the part that describes when the community can require a resident to leave. Every contract has one. Read it carefully.

Common grounds for required move-out include: care needs that exceed what the community is licensed to provide, behavior that poses a safety risk to other residents or staff, and failure to pay. These are reasonable provisions, but the specifics vary. How much notice is required? What happens if a resident is hospitalized and unable to return immediately? Is there a process for appealing the decision?

Also review the family’s right to give notice. What is the required notice period if you decide to move your loved one elsewhere? What happens to any advance deposits paid?

Refund Policies and Deposits

Some communities require an upfront deposit, a first and last month’s payment, or a community fee. Understand exactly what these payments cover and whether any portion is refundable under what circumstances. The contract should specify this clearly. If it is vague, ask for clarification in writing.

Rate Increase History and Policy

Ask how often rates have increased historically and by how much. Ask whether the contract caps annual increases or leaves them fully discretionary. A community that has historically raised rates by 3 to 4 percent annually is a different financial picture over five years than one that has raised rates by 8 to 10 percent.

The contract may not guarantee a specific rate increase limit, but asking shows you are paying attention and gives you information for financial planning.

What Happens During a Hospitalization

If your loved one is hospitalized, will their room be held for them? For how long? Does the monthly rate continue during the hospitalization, or is it adjusted? This is particularly important for residents who are likely to face periodic hospitalizations due to their health condition.

Grievance and Dispute Resolution

The contract should describe a process for raising concerns and disputes. Wisconsin requires licensed CBRFs to have a grievance procedure. Understand what it is and how to use it.

Also review whether the contract includes a binding arbitration clause, which requires disputes to be resolved through arbitration rather than through the courts. These clauses are common in many contracts across many industries, and they have implications for what options you have if something goes seriously wrong.

Who to Involve Before Signing

If the terms are complex, if the financial commitment is significant, or if there is anything in the contract that is unclear, an elder law attorney can review it. The cost of an hour of attorney time is small relative to the commitment you are making.

At minimum, read the full document yourself rather than relying on a verbal summary. Ask about anything that is unclear. A community that is reluctant to explain its own contract is worth approaching with caution.

At Adava Care communities in Glendale and Milwaukee, we want families to feel fully informed before they sign. The contract is a partnership document, and both parties should understand what they are committing to. Bring your questions, ask them, and take the time you need.