Dementia can be a challenging and often overwhelming diagnosis for both the individual living with the disease and their loved ones. One aspect of care that is often overlooked is financial and legal planning. It is important to begin planning early to ensure that the individual with dementia is protected and financially secure. In this article, we will explore the steps you can take to plan for the financial and legal needs of someone living with dementia.
Establish a Power of Attorney
One of the first steps in financial and legal planning for someone living with dementia is to establish a power of attorney. A power of attorney is a legal document that allows someone to make financial and legal decisions on behalf of the individual with dementia. It is important to establish a power of attorney while the individual with dementia is still able to make decisions and communicate their wishes.
Create a Living Will
A living will is a legal document that outlines an individual’s wishes for medical care and treatment in the event that they are unable to make decisions for themselves. This is important for someone with dementia as they may eventually lose the ability to make decisions about their own medical care. A living will can ensure that their wishes are respected and followed
Evaluate Financial Needs
It is important to evaluate the financial needs of someone living with dementia. This includes assessing income, expenses, and assets. It may be necessary to seek the assistance of a financial planner or elder law attorney to ensure that the individual with dementia has enough resources to cover their care and living expenses.
Consider Long-Term Care Insurance
Long-term care insurance can help cover the costs of care for someone with dementia. It is important to consider purchasing long-term care insurance early, as the premiums increase as an individual ages or develops health issues. Long-term care insurance can help cover the costs of in-home care, assisted living, or nursing home care.
Protect Assets
It is important to protect assets, such as suites or savings, for someone living with dementia. This may include setting up a trust or transferring ownership of assets to a trusted family member. It is important to seek the advice of an elder law attorney when making these decisions.
Review and Update Documents Regularly
Financial and legal planning for someone living with dementia should be reviewed and updated regularly. As the disease progresses, the needs of the individual may change, and their financial and legal documents may need to be updated to reflect these changes.
Planning for the financial and legal needs of someone living with dementia can be complex and overwhelming. It is important to seek the assistance of a qualified professional, such as a financial planner or elder law attorney, to ensure that the individual with dementia is protected and financially secure. By establishing a power of attorney, creating a living will, evaluating financial needs, considering long-term care insurance, protecting assets, and regularly reviewing and updating documents, you can help ensure the well-being of your loved one living with dementia.
