Managing Finances for a Loved One with Dementia

Handling a loved one’s finances can be a difficult task, particularly when they have been diagnosed with dementia. In fact, the inability to handle finances is often one of the first signs that a loved one has the disease. They might pay bills more than once, forget to pay bills entirely, give money away unexpectedly or have trouble balancing their checkbook. Dementia can also leave a loved one open to financial risk and abuse, which can make it even more important for us to familiarize ourselves with how best to protect them from these threats.

Recognizing and responding to warning signs

For a loved one with dementia, money can lose its meaning, so they may become careless with it, lose it or give it away. Financial transactions can prove problematic because they may not be able to identify coins correctly, remember pin numbers at an ATM, remember how to use checks, understand how credit cards work or pay bills and loan payments on time.

As caregivers, we have the responsibility of finding solutions to these kinds of issues as soon as they are recognizable. In some cases, we may able to help directly; in others, it may be advisable to seek outside help. Having these difficult conversations with our loved one while they are still in the early stages of dementia can be important because they may have concerns about losing their financial independence, or worry that having their financial management taken over by someone else suggests that they are no longer capable of taking care of themselves. If our loved one is someone who took care of us in the past, they may additionally be made uncomfortable by the prospect of a change in their role in our lives. By including them in discussions and allowing them to have a say in their financial decisions, we can give our loved one a way of assuring their opinions are heard and respected.

Finding solutions

If possible, we should consider creating joint accounts or power of attorney for financial decisions together with a loved one. If our loved one prioritizes staying independent, we may also want to consider keeping an account with our loved one’s name on it so we may leave them manageable amounts of money and help them retain financial independence and dignity.

It is also advisable for us to create advance directives for financial and estate management, as well as wills or living trusts while our loved one is in early stages of Alzheimer’s and is able to make decisions along with us. These documents state how their assets and estate will be distributed upon death, arrange for the care of minors, and lay out any funeral or burial wishes our loved one may have.

Seeking help

One way you can find a qualified attorney to create these advance directives is by contacting the National Academy of Elder Law Attorneys and the American Bar Association. However, if you cannot afford these options, or do not know where to turn, other sources of legal assistance may be available through local non-profit agencies, government web sites, state legal aid offices and social service agencies.

A version of this article appeared in the Private Health News.