Legal Definitions - life-care contract

A life-care contract is an agreement between two parties where one party transfers their property to the other party in exchange for guaranteed care and maintenance for the rest of their life. This type of contract is often used by elderly individuals who want to ensure they will be taken care of in their later years.

An elderly woman transfers ownership of her home to a retirement community in exchange for guaranteed care and maintenance for the rest of her life. This means that the retirement community will provide her with housing, meals, medical care, and other services for as long as she lives.

Another example could be a person transferring ownership of their property to a family member or caregiver in exchange for guaranteed care and support for the rest of their life.

These examples illustrate how a life-care contract works by showing how one party transfers ownership of their property in exchange for guaranteed care and support for the rest of their life.