When a loved one is diagnosed with dementia, many decisions must be made, such as who will care for the loved one when the symptoms progress. Also of concern will be whether the loved one’s Last Will and Testament (will) and other estate planning documents are in order. If your loved one has been diagnosed with dementia and you have questions about how to plan for the future, consider contacting an experienced Arizona estate planning attorney with Harrison Law, PLLC, by calling (480) 320-2310 to schedule a consultation.
What Is Dementia?
The umbrella term dementia covers a variety of diseases or conditions caused by abnormal changes in the brain. These can include Alzheimer’s disease, Vascular dementia, and others. According to the Alzheimer’s Association, Alzheimer’s disease accounts for between 60 and 80 percent of dementia cases.
Symptoms of dementia include a decline in cognitive abilities so severe that it impairs the person’s daily life and ability to function independently. A person’s behavior, relationships, and even personal feelings can change. Dementia generally begins with subtle signs of problems but progresses gradually over time, affecting any of the following activities:
- Retaining short-term memory
- Locating important belongings, such as a purse or wallet
- Paying bills
- Planning and cooking meals
- Keeping appointments
- Traveling even in previously well-known areas
What Are the Estate Planning Needs for Someone With Dementia?
After a dementia diagnosis, it is important for the family to take action. Does the loved one already have an estate plan? If so, are any updates or additional documents needed? If not, it is important to act quickly while the loved one still has the legal capacity to establish a plan. The necessary estate planning documents can include any of the following:
- Will: A person’s will is the legal document that states who will receive the person’s assets after his or her death
- Beneficiary designations: Bank accounts, life insurance policies, investment accounts, and others have beneficiary designations. The account owner generally names a person to receive the proceeds of the account or policy when it is first opened. These generally require updating after major life changes
- Advance directives: An advance directive names a representative to make certain decisions on a person’s behalf if the person becomes incapacitated. Advance directives include a living will, a durable power of attorney, and a medical power of attorney
- A living trust: A trust is a legal entity used to receive and distribute assets to beneficiaries according to the grantor’s wishes. Trusts are often formed for the purpose of minimizing estate taxes that would be due if the assets in the trust went through probate instead
Financial Considerations for Dementia and End-of-Life Care
Money problems may be one of the first signs of dementia. These can include having trouble making a purchase or accumulating a stack of unopened bills. After a diagnosis, discuss services that may be available to help with expenses, such as setting up automated payments for mortgage or rent, utilities, phone, and insurance. Manage spending with small amounts of cash and limited credit cards. Protect against scams or fraud by filing fraud alerts through the bank, credit card company, or credit monitoring service. Add the person’s phone number to the National Do Not Call Registry. Naming a legal proxy to manage finances and planning for the costs of future care are also important financial considerations when your loved one has been diagnosed with dementia.
The advance directives needed for financial planning include documents for communicating a person’s financial wishes. These legal documents must be signed while the testator has the legal capacity to make his or her own decisions. A knowledgeable estate planning attorney from Harrison Law, PLLC, may be able to help prepare the three common documents included in a financial directive.
Last Will and Testament
A will describes how to manage and distribute a person’s estate when that person dies. The estate includes money, property, and other financial assets. The will may also name a guardian for minor children, distribute gifts, and describe funeral and burial arrangements or preferences.
Durable Power of Attorney for Finances
A durable power of attorney for finances gives the name of a person who will make financial decisions on a person’s behalf. When Alzheimer’s or another type of dementia causes a person to lose legal capacity, having a durable power of attorney in place can allow important decisions to be made without needing to take the matter to court.
Living Trust
When setting up a living trust, a grantor names a trustee to hold and distribute property and funds to beneficiaries when the grantor dies. This document can also keep the assets out of the court’s control when the grantor can no longer manage his or her own affairs.
Health Care Considerations for Dementia and End-of-Life Care
Advance directives for health care include all the documents drafted for communicating a person’s wishes for health care needs. Other documents may be needed for specialized medical procedures, dialysis, blood transfusions, and/or organ and tissue donation.
Health Care Power of Attorney
This document names an agent to make health care decisions on behalf of a person who has become incapacitated due to dementia or other illness or injuries. According to the instructions for the form provided by the Arizona Attorney General, a person who has legal capacity can decide in advance who will make health care choices. This person can list preferences for an autopsy, organ donation, funeral, and burial or leave those decisions for his or her agent to make later.
Living Will
A living will, also called an advance healthcare directive, instructs how, when, and if a person wants certain types of end-of-life care. These documents provide a guide for the choices doctors and caregivers must make if the person is seriously injured, becomes terminally ill, falls into a coma, suffers the late stages of dementia, or is otherwise near the end of life. The instructions in living wills may not cover all possibilities, but they generally address what should be done in many of the most extreme situations.
Do Not Resuscitate Order (DNR)
A do not resuscitate order (DNR) provides instructions for medical professionals not to perform cardiopulmonary resuscitation (CPR) when a person stops breathing or when his or her heart stops. A doctor signs the DNR order and adds it to the patient’s medical chart.
Contact an Estate Planning Lawyer for Help Today
Planning for a loved one’s end-of-life care and eventual death can be difficult. However, if these plans have not been put in place already at the time of a dementia diagnosis, it is important to make arrangements sooner rather than later. Waiting may cause legal problems as your loved one’s legal capacity steadily declines. If you or a loved one is ready to update or begin the estate planning process, consider reaching out to an experienced Arizona estate planning attorney with Harrison Law, PLLC, by calling (480) 320-2310 to schedule a consultation today.
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This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
