An Alzheimer’s diagnosis can bring a wave of questions about healthcare, finances, living arrangements, and the future. While it can be difficult to think about legal matters at a time like this, early planning can give the person diagnosed a greater voice in future decisions and help family members and loved ones understand how to assist them.

For Connecticut families, one of the most important considerations after an Alzheimer’s or other dementia diagnosis is whether appropriate estate planning and incapacity documents are already in place and, if so, whether they still reflect the individual’s wishes and circumstances.

The earlier these conversations happen, the more opportunities there may be for the person diagnosed to participate meaningfully in the planning process.

 

Related Article: What Is Sundowning in Dementia Patients?

 

Why Legal Planning Should Begin Early

An Alzheimer’s diagnosis does not automatically mean that a person is incapable of making legal decisions.

Capacity can vary significantly from person to person, particularly during the earlier stages of dementia. A person may still be able to understand and execute certain legal documents even after receiving a diagnosis. Whether someone has the necessary legal capacity depends on the circumstances, the document involved, and the individual’s ability to understand the relevant decisions.

This makes timing important. Rather than assuming it is either too early or too late to address estate planning, families should consider speaking with an experienced Connecticut elder law or estate planning attorney as soon as practical.

Review the Existing Estate Plan

If the person diagnosed already has an estate plan, start by reviewing it.

Important documents may include:

• A Last Will and Testament
• Revocable or Irrevocable trusts
• Powers of Attorney
• Advance Healthcare Directives
• Living wills
• Beneficiary designations
• Deeds and other property documents

An estate plan created many years ago may no longer reflect current family relationships, finances, property ownership, or personal wishes.

It is also important to look at who has been appointed to serve in important roles. Is the person named as agent under a Power of Attorney still willing and capable of serving? Are successor agents named? Does the person still trust the individuals designated to make healthcare or financial decisions?

These questions become particularly important when planning for a progressive condition such as Alzheimer’s disease.

 

Related Article: What Happens When There Is No Estate Plan?

 

Establish or Update a Power of Attorney

A Power of Attorney is an important part of planning for possible incapacity.

This document allows an individual to authorize a trusted person, known as an agent, to handle certain financial and legal matters on their behalf.

Depending on how the document is drafted, an agent may be authorized to manage matters involving:

• Bank accounts
• Bills and household expenses
• Investments
• Real estate
• Insurance
• Taxes
• Government benefits
• Other financial transactions

A carefully drafted Power of Attorney may reduce the likelihood that family members will later need to ask a probate court to appoint a conservator to manage financial affairs.

Not all Powers of Attorney provide the same authority, however. An older document or a generic form may not contain provisions appropriate for the individual’s current circumstances or long-term care planning needs.

Review Advance Healthcare Directives

Financial planning is only one part of preparing for Alzheimer’s disease.

Advance healthcare planning allows a person to document healthcare wishes and designate trusted individuals to participate in medical decisions if the person later becomes unable to communicate or make those decisions independently.

This is an opportunity to discuss preferences regarding medical treatment, end-of-life care, living arrangements, and the people the individual trusts to advocate for them.

These conversations can be difficult, but documenting wishes while the individual can participate may help reduce uncertainty and disagreements among family members later.

 

Related Article: Asset Protection Planning Benefits For Medicaid

 

Consider Long-Term Care and Asset Protection Planning

Alzheimer’s disease is progressive, and some individuals will eventually need substantial assistance with everyday activities. Care may be provided at home, through community-based services, in assisted living, or in a skilled nursing facility.

Long-term care can be expensive, which makes financial planning an important part of the conversation.

An elder law attorney can help a family evaluate issues such as:

• How long-term care may be paid for
• Medicaid eligibility and planning
• Protection of a spouse who remains at home
• Ownership of the family home
• Trust planning
• Existing long-term care insurance
• Veterans benefits when applicable
• The effect of gifts or transfers of assets on future benefits

There is no single asset protection strategy that is appropriate for every family. Planning should take into account the person’s health, assets, income, family circumstances, existing legal documents, and anticipated care needs.

Understand Conservatorship

If Alzheimer’s progresses to the point that a person can no longer manage personal or financial matters and appropriate legal documents are not in place, the family may need to consider a conservatorship through the Connecticut Probate Court.

A conservator may be appointed to oversee certain personal or financial matters for an individual who is unable to manage them independently.

Conservatorship can provide important protection when it is necessary, but it also involves court proceedings and ongoing responsibilities. Thoughtful advance planning with Powers of Attorney and healthcare directives may help families avoid or limit the need for a conservatorship in some circumstances.

 

Related Article: Conservatorship In Connecticut – Basic Guidelines

 

Don’t Forget the Caregiver’s Estate Plan

When one spouse or partner receives an Alzheimer’s diagnosis, planning should not focus exclusively on the person who is ill.

A spouse or family member who will provide significant care should also review their own estate plan.

For example, what would happen if the primary caregiver became ill, incapacitated, or died first? Would the existing estate plan leave assets directly to a person who may later need Medicaid or other means-tested benefits? Is there another person prepared to step into the caregiver’s role?

Planning for these possibilities can create an additional layer of protection for everyone involved.

Include the Person Diagnosed in the Conversation

Whenever possible, legal planning should be done with the person who has Alzheimer’s, not simply for them.

Early-stage planning can give the individual an opportunity to express preferences about finances, healthcare, living arrangements, caregivers, and the people they trust to make decisions in the future.

It can also give family members greater confidence that later decisions are consistent with their loved one’s wishes.

 

Related Article: What Adult Children Should Know Before Taking Care of Aging Parents

 

Planning Today Can Make Tomorrow Easier

An Alzheimer’s diagnosis changes many things, but it does not necessarily eliminate a person’s ability to make important choices about their future.

Addressing legal and financial planning early can help preserve those choices, provide trusted loved ones with appropriate authority, prepare for potential long-term care expenses, and reduce the possibility of unnecessary court involvement.

At Reed Wilson Case, we help Connecticut individuals and families navigate estate planning, elder law, long-term care planning, Powers of Attorney, conservatorships, trusts, and related legal issues.

If you or a loved one has recently received an Alzheimer’s or dementia diagnosis, reviewing the legal plan sooner rather than later can be an important step toward preparing for the years ahead.

Disclaimer: The information provided in this article does not, and is not intended to, constitute legal advice and is for general informational purposes only.

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