Dementia Diagnosis? Now What? (How to Protect Yourself and Loved Ones)

A dementia diagnosis can feel overwhelming—for the individual diagnosed and for their loved ones. Questions about care, finances, and the future often come rushing in, leaving families unsure of where to begin. The good news is that with proactive planning, you can navigate this challenging time with clarity, protection, and peace of mind.

If you or someone you love has been diagnosed with dementia, here’s how to protect yourself, your loved ones, and your assets.

Step 1: Understand the Diagnosis

Dementia isn’t a single condition—it’s a term for a group of symptoms that affect memory, thinking, and decision-making. Common causes include Alzheimer’s disease, vascular dementia, and Lewy body dementia.

Knowing the progression of the specific type of dementia helps you and your family prepare for the future. While the journey may differ for everyone, planning early can make all the difference.

Step 2: Prioritize Legal and Financial Planning

Time is critical after a dementia diagnosis. Early planning allows the person diagnosed to actively participate in decisions about their care and estate. Here are the essential steps:

1. Designate a Durable Power of Attorney (POA)

A POA is a trusted individual who will manage your financial and legal affairs if you become unable to do so. Choose someone who is financially savvy, trustworthy, and capable of handling complex decisions.

2. Establish a Health Care Surrogate

A health care surrogate (or medical power of attorney) will make medical decisions on your behalf if you’re unable to communicate your wishes. Documenting your preferences now ensures your surrogate has clear guidance in the future.

3. Create or Update a Living Will

A living will expresses your wishes for end-of-life care, such as resuscitation or life-sustaining treatments. This document helps loved ones avoid the burden of making tough decisions during emotional times.

4. Consider a Living Trust

A living trust allows you to transfer assets to a trustee who manages them for your benefit during your lifetime and distributes them to your beneficiaries after your death. This tool is especially useful for avoiding probate and ensuring a seamless transition of asset management if you become incapacitated.

5. Review Your Estate Plan

If you already have an estate plan, now is the time to review it. Make sure it reflects your current wishes and includes contingency plans, such as backup trustees or alternate POAs, in case your first choices cannot serve.

Step 3: Protect Your Assets from Long-Term Care Costs

Long-term care can be expensive, and Medicaid planning is essential to protect your assets while ensuring you receive the care you need. In Florida, Medicaid rules are complex, but strategies like irrevocable trusts or asset transfers may help you qualify for assistance without depleting your savings.

It’s crucial to work with an experienced estate planning attorney who understands Medicaid rules and can help you navigate this process. Timing is critical, as Medicaid has a five-year “look-back” period for certain asset transfers.

Step 4: Assemble a Care Team

Caring for someone with dementia requires a network of support. Your care team might include:

• Family and Friends
  Loved ones can provide emotional support and assist with daily tasks.
• Medical Professionals
  Regular appointments with a neurologist, geriatrician, or primary care physician are essential to managing symptoms and progression.
• Legal and Financial Experts
  Estate planning attorneys and financial advisors ensure your legal documents are in place and your finances are secure.
• Professional Caregivers
  In-home care or assisted living facilities may become necessary as the condition progresses.

Step 5: Communicate Your Wishes

Having open, honest conversations with your loved ones is essential. Discuss your preferences for care, living arrangements, and how you want your finances managed. Clear communication reduces stress and prevents misunderstandings later.

Step 6: Plan for Ongoing Support

Dementia is a progressive condition, which means your needs will change over time. Creating a flexible plan allows you to adapt to new challenges.

1. Financial Management

Ensure bills, investments, and other financial obligations are managed consistently. Automated payments and professional financial management services can help.

2. Living Arrangements

You may choose to age in place with in-home care, move to an assisted living facility, or consider memory care options. Planning ahead ensures you’ll be in the best environment for your needs.

3. Respite Care for Caregivers

If a family member or friend is your primary caregiver, plan for periods of respite care. Caregiver burnout is common, and temporary relief ensures they can continue to provide quality care.

Step 7: Leverage Florida’s Legal Protections

As a Florida resident, you have unique opportunities and protections to help you plan effectively:

• Homestead Property Protections
  Florida’s laws protect your homestead property from creditors, which can be a valuable asset preservation tool.
• Durable Power of Attorney Requirements
  Florida requires very specific language to grant certain powers, such as creating or amending trusts, so it’s essential to work with a Florida-based estate planning attorney.
• Spousal Asset Transfers
  Florida’s laws allow for certain spousal asset transfers that can protect resources for a healthy spouse while qualifying the other for Medicaid benefits.

Take Action Today

A dementia diagnosis doesn’t mean losing control—it’s an opportunity to plan and protect your future. By acting early, you can ensure your wishes are honored, your loved ones are cared for, and your legacy is preserved.

At the Estate Planning & Elder Law Center of Brevard, we specialize in helping Florida families navigate the complexities of dementia planning. Our team can help you create or update your estate plan, protect your assets, and provide peace of mind for the road ahead.

Contact us today to schedule a consultation and take the first step toward securing your future.

Planning now can make all the difference for you and your loved ones. Let us help you prepare for whatever comes next.