Every family should factor legal and financial considerations in dementia care.
Dementia is a term that describes a group of symptoms affecting memory, thinking, and behavior. It can be caused by various diseases, such as Alzheimer’s, vascular dementia, Lewy body dementia, etc.
Dementia can affect a person’s ability to make decisions, communicate, and perform daily activities. Therefore, planning for the legal and financial issues that may arise as the disease progresses is essential.
Key Takeaways
Legal Planning
Legal planning involves preparing documents that communicate a senior or other person’s wishes and appointing someone to make decisions on their behalf when they can no longer do so.
Some of the standard legal documents include wills, trusts, powers of attorney, and advance directives.
Financial Planning
Financial planning involves managing a person’s income, assets, expenses, and debts. It also involves applying for benefits and programs that can help cover care costs.
Common financial issues include budgeting, banking, taxes, insurance, and long-term care.
Getting Help
There are many sources of help and support for people with dementia and their caregivers. These include healthcare professionals, social workers, lawyers, financial advisors, and community organizations.
They can provide information, advice, guidance, and referrals to appropriate services.
Dementia can affect a person’s ability to make decisions, communicate, and perform daily activities. Therefore, planning for the legal and financial issues that may arise as the disease progresses is essential.
Legal Planning for People with Dementia
Legal planning is an essential part of dementia care. It allows a senior, or other person with dementia to express their preferences and values and choose someone they trust to act on their behalf when they can no longer do so.
Legal planning can also help avoid conflicts and confusion among family members and caregivers.
Some of the standard legal documents that those with dementia should consider are:
- A Will – A will is a document that states how a senior wants their property and assets to be distributed after their death. It also names an executor who will carry out the instructions in the will.
- A Trust – A trust is a legal arrangement that allows a senior to transfer their property and assets to a trustee who will manage them to benefit one or more beneficiaries.
A trust can help avoid probate, reduce taxes, and protect assets from creditors. - A Power of Attorney – A power of attorney is a document that gives a family member or other caregiver the authority to make decisions on behalf of a senior with dementia.
There are different types of powers of attorney, such as financial, health care, or general.
A power of attorney can be durable, meaning it remains valid even if the person becomes incapacitated. - An Advance Directive – An advance directive is a document that states a person’s wishes regarding their medical care and end-of-life decisions.
It may include a living will, which specifies what treatments the person wants or does not want in certain situations.
It also includes a health care proxy or surrogate, which names someone who will make health care decisions for the person with dementia if they cannot do so.
It is essential to prepare these documents while seniors with dementia still has the mental capacity to understand and sign them.
The person should also regularly review and update them as their situation and preferences may change.
To prepare these documents, the senior with dementia should consult a lawyer specializing in elder law or estate planning.
The lawyer can help explain the legal options and implications, draft the documents according to the state laws, and ensure they are valid and enforceable.
Seniors should also share copies of these documents with their family members, caregivers, doctors, lawyers, financial advisors, and anyone else who may be involved in their care or affairs.
This can help ensure that everyone is aware of the person’s wishes and respects them
Financial Planning for People with Dementia
Financial planning is another important aspect of dementia care. It involves managing someone’s income, assets, expenses, and debts.
It also involves applying for benefits and programs that can help cover care costs.
Some of the common financial issues that people with dementia should consider are:
- Budgeting – Budgeting is the process of creating a plan for how to spend and save money.
It can help a person with dementia track their income and expenses, prioritize their needs and wants, and avoid overspending or running out of money.
- Banking – Banking uses financial institutions such as banks or credit unions to store and access money. It can help a person with dementia keep their money safe and convenient.
Some banking services that may be useful for senior’s with dementia include direct deposit, automatic bill pay, online banking, debit cards, joint accounts, or trusts.
- Taxes – Taxes are fees paid to the government based on a person’s income, property, or purchases. They can affect a person’s financial situation and obligations.
Some of the tax issues that may be relevant for people with dementia include filing tax returns, claiming deductions or credits, paying taxes, or getting refunds.
- Insurance – Insurance is a type of protection that covers the risk of loss or damage to a person or their property. It can help a person with dementia pay for unexpected costs or emergencies.
Some of the insurance types that may be beneficial for people with dementia include health insurance, long-term care insurance, life insurance, or disability insurance.
- Long-term care – Long-term care is a term that refers to the services and support that help a person with chronic or disabling conditions meet their personal and health care needs.
It can include home care, adult day care, assisted living, nursing home, or hospice care.
Long-term care can be expensive and not covered by Medicare or other health insurance plans.
To plan for these financial issues, seniors with dementia should consult a financial advisor specializing in elder care or retirement planning.
A financial advisor can help assess a senior’s current and future financial situation.
They can create a realistic and sustainable budget, recommend appropriate banking and insurance products, advise on tax matters, and explore options for paying for long-term care.
Seniors should also involve their family members, caregivers, lawyers, doctors, and anyone affected by their financial decisions.
This can help ensure everyone is on the same page and works together to protect the senior’s interests and well-being.
Getting Help and Support for Dementia Care
Dementia care can be challenging and overwhelming for the person with dementia and their caregivers. Fortunately, many sources of help and support are available to assist them along the way.
Some of the sources of help and support for dementia care are:
- Health care professionals – Healthcare professionals provide medical care and treatment for people with dementia. They include doctors, nurses, pharmacists, therapists, and social workers.
They can help diagnose the cause and type of dementia, prescribe medications and therapies, monitor the person’s health and progress, and coordinate care among providers.
- Social workers – Social workers help people cope with problems in their everyday lives. They include case managers, counselors, advocates, and others.
They can help assess the person’s needs and preferences, provide information and education about dementia and its impact, link them to appropriate services and resources, offer emotional support and guidance, and advocate for their rights and interests.
- Lawyers – Lawyers are people who provide legal advice and representation for seniors with dementia. They include elder law attorneys, estate planning attorneys, guardianship attorneys, and others.
They can help prepare legal documents such as wills, trusts, powers of attorney, and advance directives.
In addition, they can advise on legal issues such as guardianship, conservatorship, or elder abuse; and represent the person in court or other legal proceedings.
- Financial advisors – Financial advisors provide financial advice and planning for people with dementia.
They include certified financial planners (CFPs), certified public accountants (CPAs), certified elder planning specialists (CEPS), and others.They can help create a budget and financial plan, recommend banking and insurance products, advise on tax matters, and explore options for paying for long-term care.
- Community organizations – Community organizations are groups that offer services and support for seniors with dementia and their caregivers in their local areas.
They include Alzheimer’s associations, senior centers, adult day centers, respite services, and support groups.
Additionally, there are home care agencies, assisted living facilities, memory care homes, nursing homes, hospices, and others.
They can help provide information and education about dementia, offer socialization and stimulation activities.
They may also provide temporary or permanent care, offer emotional support and peer support, and improve the quality of life of people with dementia.
To find these sources of help and support for dementia care, the person with dementia or their caregiver can ask their health care professional for referrals, contact:
- Their local Area Agency on Aging (AAA)
- Aging Disability Resource Center (ADRC)
Visit websites such as:
- Alzheimers.gov
- Eldercare Locator
Or, call toll-free numbers such as:
- 1-800-272-3900 (Alzheimer’s Association)
- 1-800-677-1116 (Eldercare Locator)
Or, you can ask their family members, friends, neighbors, or faith community for recommendations.
Conclusion - Legal and Financial Considerations in Dementia Care
Dementia is a complex condition that affects not only a person’s memory, thinking, and behavior, but also their legal and financial affairs.
Therefore, planning for the legal and financial issues that may arise as the disease progresses is essential.
Legal planning involves preparing documents communicating a person’s wishes and appointing someone to make decisions on their behalf.
Financial planning involves managing a person’s income, assets, expenses, and debts.
It also involves applying for benefits and programs that can help cover care costs. Getting help and support from various sources can make dementia care more accessible and practical.
By planning, people with dementia and their caregivers can ensure that their legal and financial affairs are in order and that their needs and preferences are respected.
If you are looking for dementia care in Denver, or other parts of Colorado, reach out to Applewood Our House.
FAQ
Q: What is dementia?
A: Dementia is a term that describes a group of symptoms affecting memory, thinking, and behavior.
It can be caused by various diseases, such as Alzheimer’s, vascular dementia, Lewy body dementia, and others.
Q: What are the signs and symptoms of dementia?
A: The signs and symptoms of dementia vary depending on the cause and stage of the disease.
Some common signs and symptoms include memory loss, confusion, difficulty with language, changes in personality and mood.
There are also problems with judgment and reasoning, difficulty with daily activities, and hallucinations or delusions.
Q: How is dementia diagnosed?
A: There is no single test that can diagnose dementia. The diagnosis is based on a comprehensive assessment that includes medical history, physical examination, laboratory tests, brain imaging, and neuropsychological tests.
The assessment aims to rule out other possible causes of cognitive impairment and to identify the type and severity of dementia.
Q: How is dementia treated?
A: There is no cure for dementia, but there are treatments that can help manage the symptoms and improve the quality of life of people with dementia and their caregivers.
The treatments may include medications, non-drug therapies, lifestyle changes, and supportive care. The treatments may vary depending on the type and stage of dementia, the person’s preferences and values, and the availability of resources.
Q: Why is legal planning important for people with dementia?
A: Legal planning is essential for people with dementia because it allows them to express their preferences and values and choose someone they trust to act on their behalf when they can no longer do so.
Legal planning can also help avoid conflicts and confusion among family members and caregivers. Legal planning involves preparing documents such as wills, trusts, powers of attorney, and advance directives.
Q: Why is financial planning important for people with dementia?
A: Financial planning is vital for people with dementia because it involves managing their income, assets, expenses, and debts. It also involves applying for benefits and programs that can help cover care costs.
Financial planning can help people with dementia track their finances, avoid overspending or running out of money, reduce taxes and fees, protect their assets from creditors or fraudsters, and pay for long-term care.
Q: Where can I find help and support for dementia care?
A: There are many sources of help and support for people with dementia and their caregivers. These include healthcare professionals, social workers, lawyers, financial advisors, and community organizations.
They can provide information, advice, guidance, referrals, education, counseling, advocacy, care coordination, and emotional support.
To find these sources of help and support, you can ask your health care professional for referrals, contact:
- Your Local Area Agency on Aging (AAA)
- Aging Disability Resource Center (ADRC)
Visit websites such as:
- Alzheimers.gov
- Eldercare Locator
Call toll-free numbers such as:
- 1-800-272-3900 (Alzheimer’s Association)
- 1-800-677-1116 (Eldercare Locator)
Or ask your family members, friends, neighbors, or faith community for recommendations
