Estate planning for someone with Alzheimer’s Disease or another form of dementia can be complicated. Many legal documents can be rendered invalid if the testator is found to be of unsound mind or otherwise unable to make legal decisions on their behalf.
If your loved one has not created an estate plan, it’s important to act fast and seek the guidance of an estate planning lawyer with experience working with people with dementia. An estate plan for someone with Alzheimer’s should include power of attorney designations, as well as DNR and other healthcare directives, to ensure that their wishes are honored if they become unable to advocate for themselves.
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Estate Planning for People with Alzheimer’s
Treatment of long-term, progressive dementia requires a substantial amount of time and resources. Many people with Alzheimer’s require accommodations in a memory care facility or in-home health care. Even with insurance or a Medicaid waiver, the cost of care averages thousands of dollars per month. Many families are financially unprepared for this and may not have legal protections in place to ensure that their loved one’s assets can cover the cost of treatment.
Although someone recently diagnosed with Alzheimer’s Disease may be capable of making decisions now, there is no telling how quickly their abilities could decline. Important estate planning documents can help preserve their wishes with dignity.
An estate planning lawyer can meet with you and your loved one, drafting the following documents and ensuring they’re filed appropriately:
- A will detailing instructions regarding their assets and beneficiaries, plus any end-of-life wishes
- A living will to instruct medical professionals about their wishes for lifesaving or life-sustaining treatment
- A durable power of attorney for financial decisions
- A medical power of attorney for health care decisions (these can be two different individuals or the same one)
- An advance health care directive, such as a do not resuscitate (DNR) order
If your loved one already has an estate plan, it may need to be updated after a dementia diagnosis. An estate planning attorney can review the existing plan and recommend additions or changes.
Estate Planning Financial Documents and Protections
You may need to carefully review your loved ones’ finances to determine their ability to pay for necessary dementia treatment. An estate planning lawyer can help with this and may recommend setting up one or more trusts to preserve assets and ensure a better quality of life for your family member.
The designated person with a durable power of attorney or an appointed guardian can make many of the required decisions about your family members’ finances, including their living accommodations.
Trusts For a Loved One With Alzheimer’s Disease
Two different kinds of trusts can help someone with dementia:
Special Needs Trusts (SNT). Also referred to as “Supplemental Needs Trusts,” these permit people with disabilities to benefit from the assets in a trust without jeopardizing their government benefits, including Medicaid. An SNT can help cover costs that Medicaid or insurance may not and can ensure that your loved one lives comfortably.
Medicaid Trusts. This type of trust is constructed to prevent certain assets from being considered for Medicaid eligibility. Your loved one may not be in control of the assets, and therefore, the funds or property would not be considered income. However, they can still benefit financially from the trust.
Contact an Estate Planning Lawyer For Advice
It’s important to seek professional legal advice when planning an estate for a loved one with Alzheimer’s, dementia, or other memory impairment issues. An estate planning lawyer can review your loved one’s situation and financial status and recommend certain documents to protect their interests and quality of life.
