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Estate Planning for Alzheimer's Disease and Other Dementias

When it comes to safeguarding the future for yourself or a loved one affected by Alzheimer's disease or another form of dementia, early and thorough estate planning is critical. Dementia poses unique legal challenges, particularly around the capacity to make decisions over time. Planning ahead can provide peace of mind and security, ensuring that personal wishes are respected and that legal and financial issues are handled appropriately. Contact us by either using the online form or calling us directly at 414-253-8500 to learn more.

Understanding the Importance of Early Estate Planning

Understanding the Importance of Early Estate Planning

Early planning is essential because Alzheimer's disease and other dementias progressively impair cognitive abilities, affecting one's capacity to make informed decisions about health care, finances, and legal issues. Initiating discussions and decisions early in the diagnosis can help in several ways:

  • Maintaining Control: Allows the person with dementia to express their wishes for future care and decisions.
  • Easing the Emotional Burden: Reduces stress on family members by clearly outlining the plans and expectations.
  • Legal Preparation: Ensures all legal documents are in place while the individual can still legally consent.
Key Legal Documents in Dementia Planning

Key Legal Documents in Dementia Planning

Estate planning for individuals with dementia involves several crucial documents designed to manage both healthcare and financial decisions. These documents include:

Document Type Purpose Key Considerations

Last Will and Testament

Directs the distribution of assets after death

Must be completed while the individual has legal capacity

Financial Power of Attorney

Allows a designated person to manage financial affairs

Choose a trustworthy individual who understands financial matters

Healthcare Power of Attorney

Empowers a designated agent to make medical decisions when the individual is unable

Should align with the individual's health care preferences

Living Will

Specifies wishes regarding medical treatment and life-support in end-of-life scenarios

Clearly outline acceptable medical interventions and conditions


Manages assets during and after the individual's life, potentially avoiding probate

Choose between revocable and irrevocable based on needs and benefits

  1. Last Will and Testament: Directs how your assets will be distributed after death. It is vital to have a will in place before the person's decision-making capacity is compromised.
  2. Powers of Attorney: Designates a trusted individual to make decisions on behalf of the person with dementia. This includes:
    • Financial Powers of Attorney: Allows the appointed person to manage financial affairs.
    • Healthcare Power of Attorney: Empowers a designated agent to make medical decisions when the individual is no longer able.
  3. Living Will: Outlines wishes regarding medical treatments and life-sustaining measures in end-of-life scenarios.
  4. Trusts: Can be particularly useful in managing an individual's assets, providing clear instructions for their use, and potentially avoiding the lengthy probate process. Trusts come in various forms, such as revocable trusts and irrevocable trusts, each serving different needs and providing different benefits.
The Role of Trusts in Protecting Assets and Future Care

The Role of Trusts in Protecting Assets and Future Care

Trusts are a cornerstone of effective estate planning for dementia, offering several benefits:

  • Protection of Assets: Helps shield assets from being depleted for end-of-life care.
  • Specific Directions for Care: Allows the grantor to specify exactly how and by whom their assets are managed and distributed.
  • Avoiding Probate: Helps bypass the probate process, ensuring more immediate support and care using the assets.

Types of Trusts to Consider

Benefits of Different Types of Trusts in Dementia Planning

Type of Trust Benefits Ideal For

Revocable Trust

Can be altered or revoked as needs change

Individuals seeking flexibility in their estate planning

Irrevocable Trust

Protects assets from creditors and certain care costs

Those needing to qualify for Medicaid or other benefits

Special Needs Trust

Does not affect eligibility for public assistance programs

Beneficiaries with disabilities requiring ongoing support

Medicaid Asset Protection Trust

Protects assets while maintaining eligibility for Medicaid

Individuals planning for long-term care expenses

Charitable Trust

Allows contributions to charities while providing tax benefits

Philanthropically inclined individuals

Comprehensive Management of Legal Affairs

It's also crucial to address potential changes in the law and personal circumstances by periodically reviewing and updating your legal documents. This ensures that the estate plan adapts to new legal standards and personal requirements. This periodic review should involve consultations with experienced legal professionals who can provide guidance tailored to the evolving nature of dementia and its impacts on legal capacity.

Addressing Healthcare Decisions and Directives

Addressing Healthcare Decisions and Directives

Healthcare decisions are a critical aspect of planning for dementia. Advanced directives and healthcare powers of attorney ensure that medical care aligns with the individual's preferences when they can no longer communicate their wishes themselves. This can include decisions about:

  • Types of medical treatment and interventions
  • Preferences for end-of-life care
  • Choices regarding palliative care and comfort

It is beneficial to discuss these preferences early and document them clearly to avoid any confusion or family disputes during emotional times. Living wills are instrumental in laying out these critical decisions.

The Importance of a Healthcare Directive

A healthcare directive, coupled with a detailed discussion about one's medical and end-of-life preferences, provides a clear roadmap for family members and healthcare providers. This planning ensures that the individual's health care preferences are respected, reducing the burden on loved ones to make hard decisions during potentially stressful periods.

Coordination with Financial Planning

Coordination with Financial Planning

Estate planning for individuals with dementia must also be coordinated with comprehensive financial planning to ensure that resources are available to cover care needs throughout the progression of the disease. Financial powers of attorney allow designated agents to manage financial affairs effectively, aligning with the individual's best interests and care requirements.

Establishing a Financial Power of Attorney

This crucial document grants a trusted person authority to handle financial transactions, investments, and management of day-to-day expenses. This role becomes particularly significant in ensuring that bills are paid, investments are managed, and financial obligations are met without interruption.

Contact an Estate Planning Attorney for Those With Alzheimer's Disease and Other Dementias

Contact an Estate Planning Attorney for Those With Alzheimer's Disease and Other Dementias

Navigating the complexities of estate planning for Alzheimer's and other dementias requires careful consideration. Engaging with legal professionals knowledgeable in elder law and estate planning can provide invaluable guidance and support through this process. Our team at Heritage Law Office is experienced in addressing these sensitive issues and is prepared to help you or your loved one with comprehensive estate planning solutions.

Estate planning for Alzheimer's disease and other dementias is a proactive step that can significantly reduce future uncertainties. By establishing legal and financial structures early, you can ensure that the care and preferences of those affected by dementia are respected and upheld. For personalized guidance and to create a plan that addresses your specific needs, contact a knowledgeable attorney in estate planning for dementia at Heritage Law Office at 414-253-8500 or by sending us a message.

Frequently Asked Questions

Frequently Asked Questions (FAQs)

1. What is the importance of early estate planning for someone diagnosed with dementia?

Early estate planning is crucial for individuals diagnosed with dementia because it ensures that their financial, legal, and health care preferences are respected and implemented as their ability to make decisions diminishes. It provides peace of mind to both the individual and their family, knowing that arrangements are in place for future care and asset management.

2. How does a healthcare power of attorney benefit a dementia patient?

A healthcare power of attorney benefits a dementia patient by appointing a trusted person to make medical decisions on their behalf once they are no longer capable of doing so themselves. This ensures that the medical care they receive aligns with their personal values and wishes, especially in critical health situations.

3. What is the difference between a revocable trust and an irrevocable trust in the context of dementia?

In the context of dementia, a revocable trust allows changes and modifications to be made by the grantor during their lifetime, providing flexibility as their needs change. An irrevocable trust, once established, cannot be changed, which can protect assets from future creditors and qualify the individual for certain government benefits by reducing their accessible assets.

4. Why is it important to update estate planning documents after a dementia diagnosis?

Updating estate planning documents after a dementia diagnosis is important because it ensures that all documents reflect the current wishes and circumstances of the individual. As dementia progresses, their needs and situations may change, necessitating updates to legal documents to address these changes adequately.

5. How can trusts be used to manage the care of someone with dementia?

Trusts can be strategically used to manage and allocate funds for the care of someone with dementia. By setting up a trust, specific instructions can be laid out for how assets should be used for the person's health care and living expenses, ensuring they receive the appropriate care without the need for direct management as their cognitive abilities decline.


Contact Us Today

For a comprehensive plan that will meet your needs or the needs of a loved one, contact us today. Located in Downtown Milwaukee, we serve Milwaukee County, surrounding communities, and to clients across Wisconsin, Minnesota, Illinois, and California.