Every year, an estimated 10 million people around the world will face a dementia diagnosis. This diagnosis is intimidating, not only for the person facing this diagnosis but also for their loved ones. Depending on the stage and symptoms present, a dementia diagnosis can lead to major changes in your loved one’s life.
While preparing for these changes, it’s essential that you and your loved ones establish an estate plan if one isn’t already in place. As memory loss progresses, it may become increasingly difficult to create this plan. If you want to learn more about creating an estate plan after a dementia diagnosis, keep reading to see what our team recommends.
Understanding Dementia
To understand the complexity of estate planning after a dementia diagnosis, it’s essential to first understand the disease. Dementia is a broad term used to describe memory loss and the decline of cognitive abilities that affect day-to-day life. There are many reasons why a person may experience dementia, including age-related brain changes, lifestyle factors, and genetics.
One of the first symptoms you may notice before a dementia diagnosis is short-term memory loss. As the disease progresses, symptoms will worsen progressively. If you or a loved one notices short-term memory problems, it’s essential to visit a doctor for a formal evaluation. The earlier the disease is identified, the more treatments you may qualify for.
While dementia is incurable, this doesn’t mean you cannot address it at all. Some medications and treatment options have been shown to slow cognitive decline. With early intervention, you can greatly improve your or your loved one’s quality of life. However, in some cases, it may be best to consider moving to a long-term care facility.
Why Timing Matters for Estate Planning
Dementia is a progressive disease, meaning cognitive abilities continue to decline over time. Early in a dementia diagnosis, many individuals are still considered “legally competent,” meaning they can understand legal documents and make decisions about their future. Acting during this window ensures your estate plan is legally valid and reflects your wishes.
Waiting too long can lead to complicated guardianship or conservatorship proceedings, in which the court may appoint someone to make decisions on the individual’s behalf. These proceedings are often stressful, expensive, and may not align perfectly with what this individual would have wanted, making the entire process much more difficult.
Key Components of Estate Planning After a Dementia Diagnosis
When beginning the estate planning process after a dementia diagnosis, it is important to focus on financial and healthcare decisions. Some of the most critical documents and arrangements you’ll want in place include:
Power of Attorney
A power of attorney (POA) allows the individual to appoint someone to handle their financial affairs or healthcare matters. With a financial power of attorney, an individual can make financial decisions, such as paying bills, filing taxes, and managing real estate. A healthcare power of attorney allows an individual to work with doctors, make decisions about treatments, and oversee long-term care options. It’s essential to choose agents who are trustworthy, reliable, and willing to act in the individual’s best interests.
Advanced Healthcare Directives
An advanced healthcare directive provides written instructions regarding end-of-life care if an individual is incapacitated. It helps ensure the individual’s treatment preferences are honored and relieves family members from making difficult decisions during especially tumultuous times. Key components of this document include whether to pursue life-prolonging procedures like ventilators and feeding tubes, preferences around resuscitation (including DNR orders), comfort care, and hospice wishes.
Will or Trust
Updating or creating a will is critical after a dementia diagnosis. A will specifies how assets are distributed after an individual’s death and names an executor to oversee the estate. Depending on the situation, a revocable living trust may also be recommended. This document helps you avoid probate court, allows efficient asset management, and provides detailed instructions about asset distribution. A trust can be especially useful if the individual owns real estate, has complex assets, or wants to provide for beneficiaries with special needs or those who are minors.
HIPAA Authorization
HIPAA privacy laws restrict access to an individual’s medical information. A HIPAA authorization allows chosen family members or representatives to obtain necessary healthcare information, which is crucial for those acting under a healthcare POA or providing care. Without this authorization, even appointed agents could encounter barriers when trying to access vital health records or communicate with doctors. If you want to ensure a smooth transition, HIPAA authorization is an essential part of your estate plan.
Guardianship and Conservatorship
If estate planning is delayed and the individual can no longer legally make decisions for themself, a loved one may need to seek guardianship or conservatorship through the courts. While this route can be lengthy, stressful, and costly, it is essential to protect your loved one’s estate from the probate process. If you or your loved one wants to avoid guardianship and conservatorship, it is best to schedule an appointment with an estate planning attorney as soon as possible following their dementia diagnosis.
When to Speak to an Attorney
Estate planning after a dementia diagnosis can be complex and time-sensitive. Working with an experienced estate planning attorney is highly recommended. An estate planning attorney can:
- Assess the individual’s legal capacity
- Customize documents to fit unique needs
- Help protect assets
- Guide families through complicated areas like Medicaid planning or guardianship
Legal expertise ensures that the plan will hold up over time and that the individual’s wishes will be respected.
Supporting You and Your Loved Ones After a Dementia Diagnosis
A dementia diagnosis can feel overwhelming, but taking quick and thoughtful action can bring immense peace of mind. Proper estate planning ensures that the individual’s healthcare, finances, and legacy are handled according to their wishes. If you’re looking for an experienced estate attorney in Layton or Brigham City, turn to Bishop Estate Law for support. For years, we’ve provided expert care to individuals across the Wasatch Front, and we’re confident we can do the same for you.
If you’d like to schedule an appointment with our team, don’t hesitate to contact us today.