When your loved one has been diagnosed with a form of dementia like Alzheimer’s disease, legal planning should be at the top of your list of things to accomplish. Having a legal plan in place will be essential as the disease progresses and your loved one becomes unable to make decisions about healthcare, finances and end-of-life planning.
“Being diagnosed with dementia has both emotional and logistical impacts for you and your loved ones,” says Beth Vellante, Executive Director of Bridges® by EPOCH at Andover, a memory care assisted living community in Andover, MA. “While many of us understand and are prepared to deal with the emotional effects of a dementia diagnosis, it’s easy to push the financial and legal aspects to the side. Frankly, these are very stressful topics, and can bring up a lot of fear and emotions. However, taking the time to put together a legal plan will greatly help reduce stress in the future.”
By beginning tax and estate planning as soon as possible, says Beth, the more likely your loved one with dementia will be able to participate and clearly make their desires known.
Key Legal Documents for Tax and Estate Planning
There are several legal documents that should be put in place in order to streamline and simplify the tax and estate planning process as much as possible. These documents – powers of attorney, healthcare directives, wills and trusts – will identify the key individuals who have been selected to make decisions on your loved one’s behalf.
- Powers of Attorney. Your loved one will need to have a financial power of attorney and a healthcare power of attorney put into place. The former allows a designated representative to make financial decisions on the person’s behalf, while the latter does the same for care decisions.
- Healthcare Directives. This outlines your loved one’s wishes and directions for end-of-life care. These documents are also known as living wills.
- Wills, Beneficiary Designations and Trusts. This step allows your loved one to distribute their assets to the individuals and organizations they desire once they’ve passed on. Your loved one will also want to designate beneficiaries for items like a retirement account or life insurance. Depending on the size of your loved one’s estate or their wishes, a trust can be set up to help designate assets.
Financial Considerations
- Make a complete list of your loved one’s assets, along with important account information, numbers, contacts, etc. As your loved one’s memory starts to slip, there’s the possibility that assets could be forgotten and “disappear.” Things like safety deposit boxes, old CDs, security deposits and stock dividends are all examples of assets that may not always be top of mind. Work together with your loved one to put together a list of everything they own, including bank accounts, properties, insurance policies, retirement accounts and any other assets they may have.
- Set up auto-pay for your loved one’s bills and add secondary recipients to important correspondence. Since forgetting to pay bills is a common symptom of dementia, auto-paying for bills is a simple step that will make you and your loved one’s lives easier. For insurance policies and other documents, you’ll want to designate a family member or close friend who can receive copies of important information.
- Open joint bank accounts to help streamline immediate financial needs if your loved one becomes incapacitated or is suddenly unable to make decisions. A joint bank account will allow you or a representative to continue to make necessary payments without having to go through any legal steps.
Legal Planning Tips
- Make plenty of copies. These should be given to anyone designated with a power of attorney. The original documents should be placed in a location where all necessary parties can access it.
- Name backups for powers of attorney. In the event that the original agent can’t fulfill responsibilities, your loved one should name a backup so their wishes can be carried out.
- Give copies of healthcare directives to doctors and other healthcare providers.
- Consider hiring an attorney or bank representative for estate management if family members are unable or unfit to handle this task.
- Discuss wishes with powers of attorney. Your loved one should sit down with anyone designated with power of attorney to talk about their wishes and desires. This allows questions to be asked and to make sure the agent is willing and comfortable with the role.
High-Level Checklist for Creating a Successful Legal and Financial Plan
- Start as early as possible. Begin the discussion about finances, care wishes and legal issues as quickly as possible following a dementia diagnosis.
- Gather, organize and review all important documents. Whenever possible, make copies and distribute them to necessary parties. Store originals in a safe, secure place.
- Don’t do it on your own. Financial and legal planning is a complex and complicated field. Consider seeking out assistance from professional advisors who are experienced in end-of-life planning and working with senior individuals.
- Make a budget. Dementia can be a lengthy and expensive disease. Take some time to estimate the potential costs throughout the process of the memory loss journey, and make a plan for how they can be funded.
- Understand the financial options available to your loved one. He or she may be eligible for government programs, or their insurance may cover more (or less) than expected. You will also want to explore what financial support can be provided by family members.
- Look into community resources. Reach out to your Area Agency on Aging to learn about what services may be available to your loved one. They will have access to respite care, adult day care programs and home healthcare services – some of which may be free or low-cost.
Dealing with the financial and legal aspects of dementia can be overwhelming, confusing and stressful. Start as early as possible and take your time to learn about your options. Don’t hesitate to ask for assistance from professionals or seek advice from others who have gone through the process. Although it’s a lot of work up front, planning for your loved one’s future will help you gain control of the situation and make the journey ahead a little easier.
If you would like more information about legal and long-term planning for dementia care, contact us at 978.775.1070.
Engaging Lifestyle.
Now open! Bridges® by EPOCH at Andover provides memory care in an assisted living environment that is comfortable, positive, safe and engaging. Built solely to care for those with Alzheimer’s disease and other forms of dementia, Bridges® by EPOCH at Andover creates a wellness-focused lifestyle that promotes dignity and respects individual preferences. Our memory care teams receive specialized training that helps them safely support residents’ independence and elevate their self-esteem.
Dedicated Memory Care
Through early-, mid- and late-stage memory loss, residents and their families have complete peace of mind. Our compassionate dementia care, Personalized Services and unique programs are tailored to meet the physical, cognitive and emotional needs of each resident wherever they are on their own journey, allowing them to age in place safely, comfortably and with respect.
Supportive, Purpose-Built Design
Featuring a stunning residential design and the amenities of a new community, Bridges® by EPOCH at Andover is much more than a beautiful place to live; it’s a community where residents’ lives are enriched, and their families enjoy meaningful moments together. Our research-based design features soft colors and lighting, directional cues, aromatherapy and interactive life-enrichment stations that empower residents to explore their homes with confidence.
Call us today at 978.775.1070 to learn more about Bridges® by EPOCH at Andover or to schedule a personal tour.