‘It’s our money’: Milwaukee family disputes $200K fee delay at St. Camillus
Milwaukee family disputes $200K fee delay at St. Camillus
A Milwaukee-area family is waiting for a $200K entrance fee refund from St. Camillus, years after their mother’s death.
MILWAUKEE - The transition into senior living can be costly. It also requires careful planning.
There are campuses to tour, contracts to read and checks to write.
One family discovered how the best-laid plans can go astray.
The plan
What we know:
Debbie Ricciardi says it took convincing to get her parents, Robert and Rena Martin, to move into a life plan community in 2008.
"My parents kept saying, "no," said Ricciardi. "Then my mom broke both of her legs, and my dad was in early-stage dementia. I said, "there's no option guys. We have to do this."
Sometimes called "continuing care," a life plan community offers independent living but also higher levels of care on one campus.
The Martins chose St. Camillus, a faith-based non-profit in Wauwatosa.
St. Camillus has a four-star rating on Charity Navigator and an A+ rating with the Better Business Bureau.
Life at St. Camillus
What we know:
Robert Martin passed away one year after their move, but Ricciardi says her mom thrived at St. Camillus.
"Everything was great," said Ricciardi. "My mom loved it. She was head of the social committee. Everybody knew her."
Ricciardi says her mom died in 2023 at 93-years-old. What followed her death prompted Ricciardi to write to Contact 6.
"I don't think we can be the only people in this situation," said Ricciardi.
The entrance fee
What we know:
Back in 2008, when the Martins moved off a waiting list and into an 850 square foot apartment at St. Camillus, they paid an entrance fee of $199,900.
"It's just to get you through the door," said Ricciardi. "From there, you pay a monthly rent."
Ricciardi says her parents assumed the entrance fee would be refunded after their deaths. That hasn't happened.
"Two and a half years later, they have $200,000. It's our money," said Ricciardi. "My parents paid that money with the idea that it would go to us, the kids."
The contract
Dig deeper:
Contact 6 reviewed the Martin's contract with St. Camillus. The contract says the entrance fee will be refunded, but only after the unit is vacated and the next resident moves in.
It says a refund "shall be made no later than 30 days after the Sponsor receives payment in full of the Entrance Fee from the next resident of the apartment..."
As far as the Martin's children know, the apartment unit is still vacant.
"We have no recourse whatsoever," said Ricciardi. "We have an iron clad contract."
The big picture
What we know:
Elder law attorney Carol Wessels of Wessels and Liebau says the entrance fee refund policy is not unusual.
"I've seen a fair amount of contracts with that language," said Wessels. "One of the most concerning parts of that contract is when they say, "you'll get it back after we re-rent it."
Wessels says in that case, there's no guarantee families will get their money back.
"If this place is that good, that's the way you want to move in, then that's your value," said Wessels. "That's your judgment. If you love it, live there and be happy."
Wessels says there are other reasons entrance fees may not be refunded, such as a business going bankrupt.
"Reasonable effort"
Dig deeper:
The Martin's contract says St. Camillus must make a "reasonable effort" to find a new resident for the unit.
"That doesn't mean they have to offer your place first," said Wessels. "Reasonable" could mean they show it among the ten other places that they have available."
Wessels says it's important for families to understand the circumstances under which an entrance fee will be refunded. In some cases, the language can be negotiated.
St. Camillus responds
What we know:
A St. Camillus spokesperson tells Contact 6, "For more than a century, St. Camillus has been a trusted, faith-based nonprofit Life Plan Community ... Since the late 1980s, St. Camillus has operated with a contract model that is standard within the senior living community."
The waiting continues
Dig deeper:
"My parents would be so upset about this," said Ricciardi.
Ricciardi says she doesn't know the state of her parents' unit, how often it's being shown or whether a newer residential tower at St. Camillus is drawing prospective residents away.
"The last time I spoke to the CEO, I said, "I would like to see the unit," said Ricciardi. "(They said) "well, we don't do that."
Ricciardi says she wants other families to understand the risks of paying a large entrance fee.
"Have somebody else look at the contract. Go into it with your eyes wide open because it could happen to anybody," said Ricciardi.
Where the money goes
What we know:
LeadingAge Wisconsin is a membership association for nonprofit corporations serving aging adults. It tells Contact 6, "Most Life Plan Communities across the nation require a one-time entrance fee."
LeadingAge Wisconsin says entrance fees support housing, amenities, staffing, social and education activities and healthcare services. The fees also secure lifetime housing and care as residents' needs change.
Other communities
Dig deeper:
Contact 6 emailed seven other senior living communities in Southeast Wisconsin about their entrance fees. Only one responded. Its spokesperson says its "Residency Fees are 90% refundable" one year after the unit is vacated, or when a new occupant moves in, whichever happens first.
St. Camillus full statement
What they're saying:
For more than a century, St. Camillus has been a trusted, faith-based nonprofit Life Plan Community dedicated to enriching the lives of seniors through compassionate, mission-driven care and exceptional service. Since the late 1980s, St. Camillus has operated with a contract model that is standard within the senior living community.
-St. Camillus spokesperson
Statement from Leading Age Wisconsin
What they're saying:
Life Plan Communities, sometimes called Continuing Care Retirement Communities, are designed to offer older adults both independence and long-term security. Residents move in when they are active and healthy, knowing they will have access to a full continuum of care on one campus as their needs change.
Most Life Plan Communities across the nation require a one-time entrance fee. This fee secures a residence within the community and helps ensure residents have priority access to assisted living, memory care, or skilled nursing care if needed in the future. In addition to securing lifetime housing and care, entrance fees help maintain the long-term financial stability of the community — supporting housing, amenities, staffing, social and educational activities along with health care services.
There are several types of entrance fee contracts. Some are refundable, where a portion of the fee is returned to the resident or their estate, while others are non-refundable or partially refundable, with a lower initial cost. Families can choose the option that best fits their financial and personal goals. It’s always important for prospective residents to understand the terms of their contract, including any refund provisions, before signing.
Nonprofit and faith-based care providers, which represent the majority of LeadingAge Wisconsin members, operate on a mission-driven model rather than a profit-driven one. In contrast to for-profit entities, who focus on ensuring shareholder value, nonprofits continually reinvest in communities, programs, and services. This is what makes LeadingAge Wisconsin members known for high quality housing and care.
LeadingAge Wisconsin encourages families to:
1. Ask questions about what the entrance fee covers and how refunds work.
2. Review all documents carefully, ideally with a financial advisor or attorney.
3. Visit communities in person and talk with current residents to understand the culture, care, and values of the organization.
Moving into a care community is a significant decision, and families deserve complete transparency and peace of mind. LeadingAge Wisconsin member Life Plan Communities are designed to provide exactly that through lifelong security, compassionate care, and a true sense of community for Wisconsin's older adults.
The Source: Information for this report comes from Debbie Ricciardi and Carol Wessels. Ricciardi provided Contact 6 a copy of her parents' signed contract. St. Camillus and LeadingAge sent statements. Additional information was found on websites for the BBB and Charity Navigator.