It’s a difficult conversation to have, but it’s important: “what will happen to me if I suffer from dementia and can no longer take care of myself?” “Who will make my medical decisions?” “Will my family be able to manage my finances and estate?” If you’re worried about how you’ll be taken care of if you develop dementia, here are some tips for long-term care and wealth estate planning.
What Is Dementia?
Dementia is a general term for a decline in mental ability due to disease or injury. Dementia affects memory, thinking, language, judgment, and behavior. People with dementia may have trouble with mental agility tasks, such as balancing a checkbook or paying bills.
There are many types of dementia, but the most common is Alzheimer’s disease. Other types include Lewy body dementia, frontotemporal dementia, and vascular dementia.
Dementia is often mistaken for normal aging. However, dementia is not a normal part of it. It’s important to see a doctor if you or a loved one is experiencing symptoms of dementia. Early diagnosis and treatment can help slow the progression of the disease.
What Is Wealth Estate Planning?
Wealth estate planning is organizing your finances and assets in preparation for retirement or incapacity. A wealth estate plan can help you protect your assets, manage your debts, and ensure that your loved ones are taken care of in your death or incapacity.
If you struggle with dementia, it’s important to have a wealth estate plan to ensure that your financial affairs are in order and that your loved ones know your wishes regarding your care.
Wills, Trusts, and Beneficiary Designations
One of the most important aspects of wealth estate planning is deciding who will inherit your assets after you die. This can be done through a will, trust, or beneficiary designation.
Will: A will is a legal document that specifies how you would like your assets to be distributed after your death. You can name a specific person or persons to inherit your assets, and you can also designate how those assets should be used. For example, you may want your assets to be used to pay for your funeral expenses or provide for your dependent children.
Trust: A trust is a legal arrangement in which you (the grantor) transfer ownership of your assets to another person (the trustee) for the benefit of a third person (the beneficiary). Trusts can be used for a variety of purposes, including asset protection and estate tax planning.
Beneficiary Designation: A beneficiary designation is a contract between you and a financial institution, such as a bank or insurance company, specifying who will receive the benefits of your account in the event of your death. For example, you can designate your spouse as the primary beneficiary of your life insurance policy.
Health Care Planning
In addition to financial planning, it’s also important to plan for your health care needs if you develop dementia. This includes making decisions about your medical treatment and naming someone to make those decisions if you become incapacitated.
One way to do this is to create a medical power of attorney (MPA). An MPA is a legal document that gives someone else the authority to make medical decisions on your behalf if you are unable to do so yourself. The person you name as your MPA should be someone you trust to make decisions in your best interests, such as your spouse or adult child.
You should also consider long-term care insurance (LTCI). LTCI is a type of insurance that covers the cost of your care if you need assistance with activities of daily living, such as bathing, dressing, and eating. LTCI can help you pay for in-home care, assisted living, or nursing home care.
What Are Some Tips For Long-Term Care & Wealth Estate Planning For People That Suffer Dementia?
1. Create a Durable Power of Attorney
A durable power of attorney (DPOA) is a legal document that gives someone else the authority to manage your finances and make financial decisions on your behalf if you become incapacitated.
If you have dementia, it’s important to appoint a DPOA who you trust to manage your finances and make financial decisions on your behalf. Without a DPOA, your loved ones will have to go through the time-consuming and expensive process of petitioning the court for guardianship or conservatorship.
2. Create a Healthcare Directive
A healthcare directive, also known as a living will, is a legal document outlining your wishes for medical treatment if you cannot communicate those wishes yourself. A healthcare directive can specify the types of medical treatment you do or don’t want to receive and can appoint someone to make medical decisions on your behalf.
If you have dementia, it’s important to create a healthcare directive so that your loved ones know your wishes for medical treatment and can make decisions on your behalf if you are unable to do so yourself.
3. Purchase Long-Term Care Insurance
Long-term care insurance is a form of insurance that may cover the cost of long-term care, which includes services like home health care, assisted living, and nursing home care.
If you are worried about the cost of long-term care, you may want to consider purchasing long-term care insurance. Long-term care insurance can help cover the cost of your care if you need it in the future.
4. Plan for Your Retirement
If you have dementia, it’s important to plan for your retirement so that you can afford the costs of your care. There are a number of retirement planning options available, including traditional pensions, 401(k) plans, and IRAs.
You should consult with a financial advisor to determine which retirement planning option is right for you.
5. Speak With an Attorney
An experienced estate planning attorney can help you create a wealth estate plan that meets your unique needs. An attorney can help you understand the laws governing wealth estate planning and can assist you in creating a plan that meets your objectives.
If you have dementia, it’s important to speak with an attorney about your wealth estate planning options. An attorney can help you create a plan to protect your assets and ensure that your loved ones are taken care of.
Estate Planning for After Dementia
Once you have been diagnosed with dementia, it’s important to start thinking about your estate planning options. You will need to decide how you want your assets to be distributed and who will make decisions on your behalf if you become incapacitated.
Estate planning can be complex, so working with an experienced attorney is important. An attorney can help you understand the laws governing estate planning and can assist you in creating a plan that meets your unique needs.
Estate Planning for Yourself When Your Spouse Has Dementia
If your spouse has dementia, you may be concerned about what will happen to your assets after they pass away. You may also be worried about who will make decisions on your behalf if your spouse becomes incapacitated.
Estate planning can help you protect your assets and ensure that your wishes are carried out. An experienced attorney can help you create a plan that meets your unique needs.
How Can A Wealth Manager Help You?
If you have a loved one with dementia and you are concerned about their finances and future care needs, a wealth manager can help. A wealth manager can help you manage your loved one’s assets and plan for the costs of future care needs.
They can also work with your attorney to ensure that your estate planning documents are up-to-date and in line with your wishes. Furthermore, they can assist you in managing any family conflicts that may arise as a result of dementia or other concerns.
With the help of a wealth manager, you can rest assured knowing that your loved one’s financial interests are being taken care of during this difficult time. So if you have a loved one who is dealing with dementia, don’t hesitate to reach out for help from a trusted wealth manager today.
Nesso Wealth – Making The Wealth Management Process Easier
The best way to deal with wealth management for someone with dementia is to get started early. Planning and being proactive can make the process much smoother for everyone involved.
Nesso wealth offers comprehensive wealth management services that can help you plan for your future. We can help you create a financial plan that takes into account your condition and provide guidance on how to best manage your affairs if you are no longer able to do so.
Additionally, we can work with physicians and healthcare professionals to ensure that they have access to your medical records and financial accounts in the event that you become unable to communicate.
If you’re concerned about dementia, it’s important to talk to an experienced financial planner as soon as possible. With the help of Nesso Wealth, you can feel confident that your future is secure, even if a diagnosis of dementia becomes a reality. To learn more about our services or schedule a consultation, visit us online today!