Dementia: Planning Ahead and Avoiding Common Mistakes
A dementia diagnosis can be overwhelming, both for the person affected and their family. Knowing what steps to take early can save significant stress, delay and expense later.
I’ve just been diagnosed with dementia. What should I do?
The most important thing is not to panic.
Many people continue to live independently and make their own decisions for many years following a diagnosis. However, it is sensible to put plans in place while you can still make those decisions yourself.
One of the most important documents to consider is a Lasting Power of Attorney (LPA). An LPA allows you to appoint someone you trust, or a professional, to manage your affairs if there comes a time when you cannot do so yourself.
Who should I appoint as my attorney?
Many people appoint a spouse, child or close relative. However, family members are not always the right choice.
Some people prefer to appoint a professional attorney, particularly where:
- They live alone.
- They do not have close family.
- There is family conflict.
- Their finances are complex.
- They want an independent person making decisions.
A professional attorney can act alone or alongside family members.
Mum has dementia. Can I access her bank account to pay her bills?
Not necessarily.
This is one of the most common misconceptions.
Being a son, daughter or spouse does not automatically give you authority to deal with someone’s finances.
If a valid Lasting Power of Attorney is already in place, the appointed attorney may be able to help.
If there is no Power of Attorney and your loved one can no longer make decisions, an application to the Court of Protection may be required before anyone can manage their finances.
How are care home fees paid if nobody can access the person’s money?
This can become a significant problem.
Without the appropriate legal authority, bank accounts, investments and property may be difficult to deal with.
Families are often surprised to discover that they cannot simply sign paperwork, sell a property or access savings on behalf of a relative.
Obtaining advice at an early stage can help ensure funds are available to pay for care fees and ongoing expenses.
Common Mistakes Families Make
Assuming “next of kin” gives legal authority
“Next of kin” has very limited legal meaning. It does not automatically allow somebody to manage another person’s finances.
Waiting too long to make a Power of Attorney
Many families contact a solicitor after capacity has already been lost.
Once somebody can no longer understand and sign an LPA, it is usually too late to create one and a Court of Protection application may be required instead.
Taking money from the person’s account
Even where family members are trying to help, withdrawing or transferring funds without proper authority can create serious legal and safeguarding concerns.
Putting assets into someone else’s name
Families sometimes ask whether property or savings should be transferred into a child’s name.
This can create significant legal and financial difficulties and professional advice should always be obtained first.
Assuming a care home can sort everything
Care providers can assist with care arrangements, but they generally cannot make legal or financial decisions for a resident.
What happens if there is a disagreement within the family?
Unfortunately, dementia can place enormous pressure on families.
Disputes can arise regarding:
- Care arrangements.
- Financial decisions.
- Property.
- Gifts and inheritance.
- Who should act as attorney or deputy.
Obtaining independent legal advice at an early stage can often prevent matters escalating.
How We Can Help
Our specialist Court of Protection team at Chadwick Lawrence regularly assists clients with:
- Lasting Powers of Attorney
- Professional Attorney Services
- Court of Protection Deputyship Applications
- Management of Finances Following Dementia Diagnoses
- Care Home Fee Issues
- Property Sales
- Statutory Wills
- Disputes Concerning Capacity and Decision Making
Free Initial Telephone Discussion
If you are concerned about your own future, or a loved one’s dementia diagnosis, we would be happy to discuss your circumstances and explain the options available.
