How Do Estate Plans Change With Dementia and Alzheimer’s Disease?

Consider a hypothetical scenario that may be difficult to face, but could be your or a loved one’s reality one day: Suppose you know you have advancing dementia or Alzheimer’s disease. You realize that there will come a time when you will no longer have the capacity to communicate your wishes. You want to change your legal and estate plans to reflect this fact and protect your family and assets.

For peace of mind, it’s wise to work with a local attorney to finalize your estate plan before your condition worsens. Once you have a solid estate plan in place, you can stop worrying about nagging legal issues. Instead, you can focus on your life, family, and those things you hold dear.

Impact of Dementia and Alzheimer’s Disease on Estate Planning

First off, you want to plan for the inevitable. What does that involve?

1. Creating mechanisms to safeguard your property and financial assets.
2. Planning for your healthcare now and at the end of life, and for your preferences when your condition changes and deteriorates
3. Updating your current paperwork and estate plans
4. Reviewing every document, life insurance policy, and asset, and taking a complete and precise inventory of what you own
5. Naming a trusted individual who can make decisions on your behalf after you’re unable, and sharing every piece of information you can with this person

Right now, you’re likely acting in “legal capacity.” This means you can understand your actions, surroundings, and the legal proceedings you are undertaking. Eventually, your legal capacity will diminish along with your power to sign documents and take necessary legal actions.

While you’re still making coherent decisions and acting prudently, you can create legal documents that will only take effect after you lose your ability to act in a legal capacity. Look at your future self as another person and assume the role of legal guardian, taking steps to protect this person legally, financially, and medically.

Here are the primary legal documents you should be thinking about right now:

1. Living Will

A living Will is an advance directive explaining what you would like to have happen as you approach the end of your life. You can clarify your wishes regarding pain management and life-sustaining treatments so that your loved ones won’t be saddled with these difficult decisions.

2. Physician Orders for Life Sustaining Treatment

Physician orders for life sustaining treatment (POLST) cover the treatments or life-saving measures you would want—and for how long you want them—if you become seriously ill. Your physician must sign this form. It does not replace your advance directives, but merely sits alongside. Check with your state to see if it has the POLST, or contact your local estate planning lawyer for guidance.

3. Power of Attorney for Healthcare

A power of attorney (POA) lets you name someone to make decisions for you when you can no longer act within a legal capacity. This includes what type of facility you can reside in, and the medical treatments you may receive. A POA also covers Do Not Resuscitate (DNR) orders and decisions like those regarding the use of feeding tubes.

4. Durable Power of Attorney for Finances and Property

A Durable POA enables you to designate a trusted individual to make decisions about your financial assets, income, and investments, once you cannot act within a legal capacity. This POA is designed to prevent disruptions in payments or disbursements, protect your assets, and even help you avoid having a court appoint guardianship.

5. Standard Will

This is the Last Will and Testament you probably think of. A standard Will determines how your assets will be distributed among others you delegate after your death.

6. Living Trust

In some ways, a living Trust acts like a Will, but refers to the state of your financial resources while you are still alive. Another difference is that a Trust carries out your legal decisions when you no longer have legal capacity. The living Trust allows you to assemble your financial resources in one place and appoint a trustee to oversee it.

Plan Ahead to Protect Your Future and Loved Ones

No one wants to think about declining mental capacity, even less so when progressing dementia or Alzheimer’s disease is the reality you’re facing. Making plans now while you can is a sound legal move and an act of love for those you leave behind. At Donnellon, Donnellon & Miller, our local legal representatives can help you update your estate plan to preserve your decision-making power and protect your loved ones. Also, putting these estate planning tools in place lets you focus more on what matters to you now.