Planning Ahead for Dementia, Care & Inheritance

How we support families living with dementia

We understand that you may have concerns around future care and arrangements for your loved one. This highlights the importance of planning for future care costs and other related expenses. Our financial planning services cover a range of topics, helping you to feel at ease with the entire process.

It’s so important to plan ahead early in the process, as this can help make things easier further down the line.

Protecting the family home

Ensuring that the family home is protected is an important aspect to consider when someone you love is diagnosed with dementia. There are several legal steps that could be taken to support financial security.

Families could take the following steps: appoint a Lasting Power of Attorney, update Wills and explore other options available, such as trusts. While these steps can be part of a strategy to manage assets and plan for care, it’s important to understand that they do not guarantee protection from care fees.

You should always seek personalised advice from a qualified legal or financial adviser before making any decisions.

Advice on Power of Attorney – Dementia

The role of Lasting Power of Attorney should only be given to a trusted individual. This individual will be able to make financial decisions on your behalf if you are no longer able to make them yourself.

It’s a good idea to organise a Lasting Power of Attorney as soon as possible after being diagnosed with dementia.

Writing and updating Wills

It’s important to have a Will in place to ensure that your assets are distributed according to your wishes.

When it comes to family estate planning, a Will should be updated regularly. If a family member is diagnosed with dementia, they must demonstrate a level of understanding to the solicitor involved. In some cases, a medical professional may need to confirm that the Will can be altered.

Understanding care fees and funding options

It’s common to be paying for care with dementia, but before you make any decisions, you should explore the options available to you. Depending on a person’s financial situation, they may be required to pay for their dementia care in full or partially. Those who choose to self-fund their dementia care can choose where they reside with more freedom and independence.

Some people who have been diagnosed with dementia may be able to claim payments through various schemes. Some of these may only be available to those with fewer assets. Speak to an expert when planning for future care costs.

Avoiding financial abuse or confusion

We understand that dementia inheritance planning can be overwhelming, but there are certain steps you should take to reduce the risk of issues. A financial specialist may suggest setting up a more straightforward banking process, where payments are automated. A Lasting Power of Attorney may also check bank statements to ensure that everything is in order. This highlights the importance of choosing someone you trust.

FAQs

Can we still make a will after a dementia diagnosis?

Yes, you can usually still make a Will in the UK following a dementia diagnosis. It’s important to note the benefits of taking this step soon after the diagnosis.

Your loved one may need to be assessed to ensure they have ‘testamentary capacity’. This ensures that they can still make informed decisions about their Will and other finances.

It is always recommended to work alongside a professional solicitor before you think about altering Wills. You may need additional support if the Will is more complex.

Will we have to sell the house to pay for care?

Not everyone will need to sell their house to pay for dementia care, but some individuals may require this option. Some people who are diagnosed with dementia can continue living at home without any issues, but some people may require more specialised and attentive care.

Currently, in England, if a person’s assets exceed £23,250, then they will be expected to pay towards their care home fees. This can often lead to many people needing to sell their homes. We recommend consulting a financial expert before making any decisions about this.

What does Power of Attorney actually mean?

A Power of Attorney plays a crucial role in supporting individuals with dementia. This document enables a person to help another person make decisions. Some of these decisions can relate to finances and health.

It is so important to choose someone you trust to take on this role. You should seek professional advice on this before making any decisions.

The information provided is for guidance only. We recommend seeking professional legal and financial advice.