Alzheimer’s and similar diseases can have a significant impact on a family. At the time of a diagnosis, you may not be thinking about the future. However, if you do not plan for your estate now, you could risk your assets and family’s future.
When these diseases reach the stage where a person can no longer remember family members or understand their assets and important documents, they can no longer create or modify an estate plan. The best option that the family has at this point is to file guardianship. If there is not already a power of attorney for financial or health care, you must petition the court for a guardian. A guardian is a person appointed by the court to make healthcare and other decisions for someone who cannot make these types of decisions because of an injury, illness, or disability.
When a person passes away with creating an estate plan, their estate will be divided according to their state’s Intestacy Rules rather than individual wishes. During this process, family dynamics are not taken into consideration. To protect your assets and those you love, having an estate plan is an essential part of ensuring your family is protected after your death.
It is essential to be proactive in creating and updating estate plans when dealing with Alzheimer’s or another degenerative brain disease. When someone is diagnosed with a degenerative brain disease, it is vital that you make these steps for health care, advanced directives, and estate planning as soon as possible.
Health Care Directives
A health care power of attorney designates an individual, ofter called an “agent,” who makes health care decisions on behalf of someone else if the individual becomes incapacitated. This is often referred to as a “health care proxy”. This document allows the agent to make decisions and communicate with doctors and health care providers on behalf of the grantor of the power.
A DNR (do not resuscitate order) lets health care professionals forego performing CPR if an individual’s heart stops or if they stop breathing. A DNR is signed by a doctor and placed in a person’s medical cart.
A living will spell out end-of-life wishes for medical treatments and can make decisions even with a person is incapacitated. A living will can be an essential part of your will to ensure that your family and health care providers know what your wishes are even when you cannot communicate your wishes to them.
Advance Directives
A durable power of attorney gives an individual the ability to act financially on another behalf. Both the scope and the duration of this authority are outlined in the document. The scope of a durable power of attorney includes paying bills, managing your investments, or directing your medical care once you cannot do so yourself.
The last will and testament dictate how assets and estate will be divided upon death. It is vital to have this created or updated as soon as possible after a loved one is diagnosed with Alzheimer’s.
A revocable trust addresses the management of finances and assets while an individual is still living. This document gives instructions about an estate and appoints a trustee to hold titles to property and money on their behalf.
Special Needs Estate Plan
Suppose a loved one has been diagnosed with a debilitating disease such as Alzheimer’s. In that case, a special needs estate plan could be the best option to allocate assets as well as preserve government disability benefits.