People with Alzheimer's may be able to manage their own legal and financial affairs at first. But as the disease gets worse, they’ll need to rely on others to act in their best interests. It’s not an easy change.
Plan for it in advance if you or someone close to you is in the early stages of Alzheimer’s. You can lower your family’s stress and make decisions together for what may come.
It’s important to have clearly written legal documents that outline your or your loved one's wishes and decisions. These documents can authorize another person to make health care and financial decisions, including plans for long-term care. As much as possible, the person with Alzheimer's should participate in legal planning, as long as they are mentally able to sign official documents.
An attorney can help you understand the laws that apply in your state and what you need to protect yourself or your loved one. Lawyers who specialize in elder law, which focuses on issues that typically affect older adults, can help with some of the specific issues you might face.
Ask about these documents as you plan for the future:
- Power of attorney. This gives a person with Alzheimer's disease, called the principal, a chance to choose someone to make legal decisions for them when they are no longer able to do so.
- Power of attorney for health care. The person with the disease chooses someone to make all decisions about their health care, including choices on health care providers, medical treatment, and end-of-life decisions.
- Living will. This allows someone to decide which if any, life support treatments they want if they go into a coma or become terminally ill.
- Living trusts. These let a person, called the grantor or trustor, create a trust and name themselves or someone else as trustee (usually a person or a bank). The trustee will carefully invest and manage their assets once they are no longer able to do so.
- A will. This document names the person who will manage their estate, called an executor, and the people, called beneficiaries, who will receive the estate when they die.
The first step in planning how to pay for your or your loved one's future medical and living expenses is to take an honest look at your family's financial situation.
- Take stock of all assets. Make sure you have the right financial documents, including bond certificates, bank account statements, real estate deeds, and insurance policies.
- Work with a qualified advisor, such as a financial planner, an estate planning attorney, or an accountant, to coordinate financial strategies and investments, find possible sources of income, and spot tax deductions.
- List out any expenses you may have in the coming years, including ongoing medical treatments, prescription medicines, care services, and personal care supplies, such as incontinence supplies or diet supplements.