The IRS considers Life Care to be a prepaid medical expense, so tax deductions are often available for portions of the upfront entry fee and monthly service fee — generally up to 40 percent of the fee. Because deductions may vary state to state, it’s wise to check with your personal tax advisor to learn more about your specific tax benefits. Entering a Life Care community can also affect your estate planning. A Life Care contract takes care of the portion of your planning that would address funding your health care needs. The contract ensures your healthcare needs will be met even if you run out of money (through no fault of your own). You can also choose a refundable contract that returns a portion of your entrance fee to your designated beneficiary after you pass away. *The Life Care guarantee is subject to the terms and conditions of the Residency Contract. This option is subject to availability at the Life Care community. Available care levels vary by community.