It will of course be a shock to learn of a loved one’s diagnosis of Alzheimer’s disease or other dementia. The first step will no doubt be to immediately seek preventative medical treatment, but it is just as important to consider the impact on your loved one’s assets and to seek advice on financial and estate planning.
Persons suffering from Alzheimer’s disease will, over time, lose the cognitive abilities required to manage their assets and finances and to care for themselves, and family members often overlook the fact that that without estate planning documents in place they could be denied access to funds that are necessary to pay for medical care, be unable to manage real estate, and they could be denied access to medical records or be left without authority to make medical important decisions. As a result, family members may face an expensive guardianship proceeding, or guardianship contest, that could have been avoided with advance planning.
At the outset of a diagnosis of Alzheimer’s or other form of dementia, it is key to assess whether your loved one has documents in place such as a Last Will and Testament, Living Trust, Financial Power of Attorney, Medical Power of Attorney, Physician’s Directive, and Declaration of Guardian. The eventual loss of cognitive function from dementia will render a person unable to execute these important estate planning documents, leaving loved ones with much fewew options.
Additionally, proactive and proper planning can also ensure your family member’s assets are put to the best possible use for their care over time, given the rising cost of long-term nursing care, and will avoid the family being caught off guard when discussions of Medicaid eligibility arise. If you or your family member has received a dementia diagnosis and you have questions on how to protect and preserve your assets, please contact our firm for a free estate planning or Medicaid consultation.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.
