Can an Assisted Living Facility Require a Guarantor?

Yes, an assisted living facility can require a guarantor. Many communities have lengthy contracts and ask for one or more individuals to provide a third-party guarantee of payment as a condition for accepting a new resident. This is especially likely if the senior privately funds their care. This means that a family member or friend could become responsible for their loved one’s bills and debts if they run out of funds or stop paying.

Unlike nursing homes, no national law exists to prevent assisted living facilities from requiring a guarantor. Similar to other housing leases, assisted living agreements can include various contractual obligations, and individuals must usually accept these terms if they wish to reside there. While facilities can’t force anyone to act as a guarantor, they can refuse admission.

Policies vary between communities, so seniors and their families may find an alternative local provider that doesn’t attach such conditions. They can also attempt to negotiate the terms. Facilities may be more willing to remove guarantor requirements for seniors who provide proof of significant savings, pay in advance or are eligible for public assistance, such as Medicaid or VA benefits. Because of the length of assisted living contracts and their use of jargon, families may consult an elder care lawyer before signing. Additionally, if an assisted living facility admits a senior without a guarantor, it can’t later force third parties to take on financial responsibilities.

A guarantor accepts financial responsibility for another person in the case of default. Conversely, depending on the order terms, a legal guardian or conservator can make financial, medical and legal decisions on behalf of a senior the court deems incapable of making decisions in their best interests. While a guardian’s responsibilities may include using an individual’s resources to pay for their care, they aren’t bound to cover costs from their personal funds.In contrast, individuals voluntarily create powers of attorney while competent, delegating decision-making capacities to a third party if they can’t manage their affairs. Powers of attorney may cover financial matters, health care or both. Similar to guardianship, people with financial powers of attorney have the responsibility to use a senior’s funds appropriately; they don’t take on personal liability for expenses or debts.