### Question
How is the "continuing care contract" defined?


### Answer
The term **continuing care contract** is defined in *26 U.S.C. § 7872* as follows -

> a written contract between an individual and a qualified continuing care facility under which—



(A) the individual or individual's spouse may use a qualified continuing care facility for their life or lives,



(B) the individual or individual's spouse—



(i) will first—



(I) reside in a separate, independent living unit with additional facilities outside such unit for the providing of meals and other personal care, and



(II) not require long-term nursing care, and


  


(ii) then will be provided long-term and skilled nursing care as the health of such individual or individual's spouse requires, and


  


(C) no additional substantial payment is required if such individual or individual's spouse requires increased personal care services or long-term and skilled nursing care

#### Citation:
  - *26 U.S.C. § 7872*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 80-GENERAL RULES > Subchapter C-Provisions Affecting More Than One Subtitle**

