When your loved one has received a dementia diagnosis, the future they need to prepare for comes faster than expected. Once they show signs of dementia, they have a window of time to ensure they’ve made their wishes clear.
Essential documents provide a clear framework for decision-making and asset management. They can eliminate the guesswork and potential disputes among family members. This safeguards the interests and well-being of everyone involved.
- Power of Attorney (POA)
The Power of Attorney document allows your loved one to name someone to make financial decisions for them when they can no longer do so. This person may be a spouse, sibling, parent or close friend, depending on the situation.
A power of attorney should be “durable” to avoid disputes. This means it can only be changed by the person with dementia while they still have capacity.
- Advance Directive
Your loved one outlines how caregivers and medical professionals should provide care when the person with dementia can no longer decide. For example, this document can state where they choose to have memory care.
- Living Will
A Living Will is a type of Advance Directive that outlines end-of-life decisions. It could include a do-not-resuscitate order or indicate whether your loved one would like machines to keep them alive for a time.
- Standard Will
This document names an executor who will manage your loved one’s estate after they have passed on. It also states the beneficiaries of the estate and how to distribute assets.
- Living Trust
A Living Trust is another way your loved one can ensure their wishes are carried out while they’re alive. Anyone can set up a Living Trust for themselves. But it’s especially beneficial in certain circumstances, such as:
- High net worth
- Business ownership
- Lots of assets
- Real estate in multiple states (or countries)
- Complicated family relationships
After setting it up, the person with dementia places some or all of their assets into the trust. They then name a trustee to manage the assets on their behalf: buying, selling, paying bills, collecting debts, etc.
Some people choose their bank as the trustee. This is a viable option when the person with dementia doesn’t want to burden someone in their family with these responsibilities. Since banks are highly regulated, this can also provide a safer alternative when no one close to your loved one has the experience to manage the kinds of assets they have.
Getting Essential Documents in Order
Your loved one can acquire many of these essential documents online. They must have a notary verify their signature before they become legal. Alternatively, the person with dementia may want to work with a lawyer, especially in more complex situations.
Either way, this financial planning for someone with dementia should be done sooner rather than later. If your loved one has recently been diagnosed with dementia, please contact Diamondback Health and Memory Care to learn about the Montessori-inspired living program in our Desert Diamond Memory Pavilion.