🧾 Financial Planning Checklist for Dementia (General)

For Patients, Families, and Caregivers

💡 Why Early Planning Matters

• Start financial and legal planning as soon as possible after diagnosis
• Involve the person with dementia in decision-making
• Early planning helps:
    • Protect assets
    • Avoid legal complications
    • Reduce caregiver burden
    • Ensure care aligns with the person’s values and wishes

🧭 Step-by-Step Financial Planning

✅ Step 1: Talk About It Early

☐ Have open, supportive conversations with loved ones
☐ Involve the person with dementia in all decisions while they retain capacity
☐ Identify trusted individuals to help with finances and care

✅ Step 2: Organize Financial Information

☐ Gather key documents:
  • Bank accounts, credit cards, loans
  • Income (Social Security, pensions, retirement)
  • Real estate, vehicles, other major property
  • Insurance policies (health, life, long-term care)
  • Monthly bills (utilities, subscriptions, rent/mortgage)
  • Legal documents (wills, trusts, powers of attorney)
📄 Use this worksheet (PDF)

✅ Step 3: Set Up Legal Documents

☐ Ensure documents are signed while the individual has capacity:
  • Durable Power of Attorney (finances)
  • Advance Health Care Directive
  • Living Will
  • Revocable Living Trust (optional)
👨‍⚖️ Consult an elder law attorney

✅ Step 4: Understand and Plan for Care Costs

☐ Include both current and future expenses:
  • Medical care (doctor visits, prescriptions, hospital stays)
  • Home help (aides, adult day programs)
  • Residential care (assisted living, skilled nursing)
  • Other costs (transportation, supplies, legal fees)
☐ Explore support from:
  • Medicare & Medicaid
  • SSDI
  • Veterans’ benefits
  • State/community programs

✅ Step 5: Choose People You Trust

☐ Designate family/friends for legal and financial roles
☐ Choose a health care proxy and power of attorney
☐ Consider hiring professionals (e.g., elder law attorney, financial planner)

✅ Step 6: Protect Against Scams & Abuse

☐ Monitor accounts for unusual activity
☐ Use automatic bill pay
☐ Limit access to large cash or credit
☐ Add a trusted contact to financial accounts
☐ Consider freezing credit to prevent identity theft
🔗 FTC Scam Alerts

✅ Step 7: Simplify Daily Money Tasks

☐ Use automatic deposits/payments
☐ Consolidate accounts
☐ Provide small, manageable spending cash (if appropriate)

✅ Step 8: Review and Update Regularly

☐ Review plans annually or after major life changes
☐ Confirm documents reflect current wishes
☐ Update contact info/access for banks, insurers, etc.

✅ Step 9: Create a Care Budget & Emergency Fund

☐ Estimate future care needs
☐ Build a monthly care budget
☐ Set aside emergency funds for unexpected expenses or housing changes

✅ Step 10: Communicate with Loved Ones

☐ Hold a family meeting to share the financial and care plan
☐ Ensure everyone understands their roles
☐ Sign consent forms to allow communication with providers and institutions

🧾 Financial Planning Checklist for Advanced Dementia

For Caregivers and Decision-Makers
(When the individual can no longer manage or participate in financial decisions)

⚠️ Before You Begin

☐ Confirm that the person no longer has legal capacity to make financial decisions (a physician’s letter may be needed)
☐ Locate any existing legal documents (POA, advance directive, will, trust)
☐ If no documents exist, prepare to pursue legal options such as guardianship or conservatorship

✅ Step 1: Establish Legal Authority

☐ Use Durable Power of Attorney (if previously signed) to manage finances
☐ If no POA exists and capacity is lost, consult an elder law attorney about:
  • Conservatorship (court-appointed financial decision-maker)
  • Guardianship (court-appointed for personal/medical decisions)
☐ Apply to be a Representative Payee (SSA) or VA Fiduciary if managing benefits

✅ Step 2: Secure and Monitor Financial Accounts

☐ Notify banks and financial institutions of legal authority (POA or court order)
☐ Add yourself or other trusted individuals as authorized account managers
☐ Set up automatic payments for bills
☐ Close or freeze unused accounts to prevent misuse
☐ Monitor accounts for fraud or unauthorized transactions

✅ Step 3: Review and Organize Assets

☐ Create a list of all financial resources:
  • Checking/savings accounts
  • Retirement accounts (IRA, 401k, pension)
  • Real estate and property
  • Insurance policies
☐ Track income sources:
  • Social Security, SSDI
  • Pensions, annuities
  • Rental or investment income

✅ Step 4: Budget for Current and Long-Term Care

☐ Estimate monthly costs for:
  • In-home care or aides
  • Adult day programs
  • Assisted living, nursing home, or memory care
  • Medications and medical supplies
☐ Include legal, transportation, and personal expenses
☐ Build or adjust a care budget based on available assets

✅ Step 5: Access Benefits and Financial Assistance

☐ Apply or re-verify eligibility for:
  • Medicaid (long-term care support)
  • Medicare (medical coverage, limited SNF stay)
  • Veterans’ benefits
  • Supplemental Security Income (SSI)
☐ Contact local Area Agency on Aging for free benefit counseling

✅ Step 6: Manage and Protect Property

☐ Secure the individual’s home and valuables
☐ Make arrangements for property upkeep or sale if needed
☐ Review homeowner’s/renter’s insurance and ensure it’s active
☐ Keep documentation of any major asset decisions

✅ Step 7: Prevent Financial Exploitation

☐ Limit who has access to money or sensitive information
☐ Set up fraud alerts or credit freezes
☐ Use prepaid debit cards or low-limit accounts for caregivers (if needed)
☐ Monitor caregiver or facility billing and contracts
☐ Report suspicious activity to Adult Protective Services or law enforcement

✅ Step 8: Maintain Records and Communicate

☐ Keep copies of all legal and financial documents
☐ Document financial decisions made on the person’s behalf
☐ Maintain a communication log with banks, insurers, and benefit programs
☐ Update other family members or stakeholders regularly

✅ Step 9: Plan for Final Expenses and Estate

☐ Locate and review the person’s will or trust
☐ If no will exists, know that estate will be handled under state intestacy laws
☐ Review funeral or burial pre-planning documents
☐ Consider setting aside funds for end-of-life expenses

🛠️ Legal & Financial Tools Explained

✅ 1. Durable Power of Attorney (POA)

• Allows a trusted person to manage finances
• Must be signed while person still has capacity
• Most flexible and commonly used legal tool

✅ 2. Conservatorship / Guardianship

• Court-appointed if no POA exists and person lacks capacity
• Requires legal process and doctor’s evaluation
• Involves ongoing court oversight
  👨‍⚖️ Used only if planning was not done early

✅ 3. Representative Payee / VA Fiduciary

• Manages Social Security or VA benefits
• No access to other financial accounts

🔗 Apply via SSA
🔗 VA Fiduciary Program

✅ 4. Joint Bank Accounts (Use with Caution)

• Allows shared banking access
• Risks: legal liability, disputes, loss of control
• Not a substitute for POA

✅ 5. Revocable Living Trust

• Manages assets and avoids probate
• Successor trustee can manage funds after incapacity
• Only covers assets titled in the trust

✅ 6. Professional Help

Elder Law Attorneys – Legal documents, Medicaid planning
🔗 Find Elder Law Attorneys – NAELA

📚 Helpful Resources