Legal & Financial Planning when Supporting Someone with Dementia

Caring for an aging loved one with dementia comes with unique challenges, and planning ahead can make a significant difference. From managing legal documentation to addressing financial responsibilities, these steps ensure your loved one’s wishes and wellbeing are respected while alleviating some of your burden.

Understand Legal Documentation Needs

One of the first steps in planning for a loved one with dementia is addressing his or her legal documentation. Certain documents become essential, as the progression of dementia can impact the ability to make decisions.

• Power of attorney (POA) – Establishing a durable power of attorney for financial and healthcare decisions allows a trusted individual to act on your loved one’s behalf when he or she can no longer make decisions independently.

• Advance healthcare directives – These documents outline your loved one’s healthcare wishes, ensuring he or she receives medical treatment that aligns with his or her preferences.

• Last will and testament – A will specifies how assets will be distributed after your loved one passes. Ensuring this is updated can prevent disputes and reflect your loved one’s current wishes.

Discuss these documents with an experienced elder law attorney to ensure they comply with state laws and meet your loved one’s unique needs.

If your loved one’s wishes include living at home as long as possible, it’s a good idea to plan ahead for the possibility he or she may need help with the activities of daily living. One of the most challenging tasks of helping an elderly relative age in place safely and comfortably is researching agencies that provide elderly home care. Turn to Home Care Assistance for reliable, high-quality in-home care for aging adults. We offer 24-hour live-in care for seniors who require extensive assistance, and we also offer respite care for family caregivers who need a break from their caregiving duties.

Manage Immediate and Future Finances

Financial planning often becomes a collaborative effort between caregivers and financial professionals. Start by taking stock of your loved one’s financial situation and creating strategies for current and future care.

• Budget for care – Factor in expenses such as in-home care, assisted living facilities, medical treatments, and other ongoing costs associated with dementia care.

• Access benefits – Investigate your loved one’s eligibility for government benefits such as Medicare, Medicaid, Veterans Affairs (VA) programs, and Social Security Disability Insurance (SSDI), which can offset care costs.
• Establish a trust – Many families consider setting up a living trust to manage and protect assets. This arrangement can simplify asset distribution and ensure funds are appropriately designated for your loved one’s care.

Collaborating with a financial planner who understands elder care can ensure a solid strategy to protect your loved one’s financial wellbeing as well as your own.

Financial planning is just one of the many things your loved one may need help with. Aging adults who require assistance with the tasks of daily living can benefit from reliable elder care. Philadelphia, PA, families trust Home Care Assistance to provide the high-quality care their elderly loved ones need and deserve. Our caregivers are trained to help seniors prevent and manage serious illnesses and encourage them to make healthier decisions as they age.

Navigate Guardianship and Conservatorship

When dementia progresses to the point where your loved one can no longer make sound decisions, guardianship or conservatorship may be necessary. These legal arrangements provide a court-appointed individual with the authority to make decisions about your loved one’s care, finances, or both.

• Difference between guardianship and conservatorship – Guardianship pertains to personal and healthcare decisions, while conservatorship focuses on financial matters.

• When it is needed – This process often comes into play if no power of attorney was established before your loved one’s cognitive decline.
• How to process – This typically involves a court proceeding to establish the arrangement. While it can be time-consuming and complex, it ensures your loved one’s interests are legally protected.

Consult a legal professional to determine the best course of action for your loved one.

Plan for Long-Term Care

Long-term care planning is a critical component when supporting someone with dementia. With the progression of the condition being unpredictable, preparedness ensures smoother transitions to needed services.

• Evaluate care options

• Home care – For those who want to stay in familiar surroundings, caregiving services can be hired.

• Memory care facilities – These specialized assisted living facilities cater specifically to individuals with dementia.

• Pay for long-term care – Long-term care insurance, if already in place, can cover expenses. Otherwise, explore Medicaid or personal resources to fund care options.
• Establish emergency plans – Design backup plans for unexpected situations, such as sudden changes in your loved one’s health or caregiver unavailability.

Proactively researching and building a care network will provide peace of mind as your loved one’s needs evolve.

Protect Your Loved One from Financial Exploitation

Individuals with dementia are particularly vulnerable to financial exploitation. Ensuring safeguards are in place is an essential part of planning.

Monitor financial accounts – Regularly review bank and credit card statements for unusual activity.

• Set spending limits – Limiting access to large sums of money or creating a joint account with the caregiver can reduce risks.

• Educate on scams – Inform your loved one and other caregivers about common fraud schemes targeting vulnerable individuals.
• Assign a trusted fiduciary – Designate someone responsible for overseeing financial transactions to spot potential issues early.

These preventative measures offer protection while maintaining your loved one’s dignity and best interests.

Highly trained caregivers with experience in caring for seniors with dementia can be a fantastic resource for family members. For trusted and reliable dementia care, Philadelphia families can turn to Home Care Assistance. We are experts in caring for seniors with memory-related conditions, our caregivers are available 24/7, and all of our dementia care programs are backed with a 100% satisfaction guarantee. Trust your loved one’s care to the professionals at Home Care Assistance. Reach out to one of our compassionate Care Managers today at (215) 645-4663