Start by learning how to identify the 10 Warning Signs of Alzheimer’s and other dementias.
Once you’re familiar, check out this five-step framework for building a financial plan around dementia, developed by researchers at the MIT AgeLab.
Step 1: Assets
Since dementia is a progressive disease, planning early is always better. Start by making a list of your loved one’s assets: Retirement savings, investments, property, household items, real estate, etc. Whose name are they in? What is their estimated value?
Step 2: Income and insurance
Identify all their current income sources, including benefits, disability payments, Social Security, annuities, and pensions. It may help to sit down with a financial professional to determine this, as well as insurance needs.
Step 3: Intentions
Where does your loved one want to live as the disease progresses? How does he or she want care to be managed and delivered? How can they be sure their finances will be safe?
Step 4: Banking and administration
As the health of a loved one with dementia declines, he or she will need more help managing day-to-day finances, including tracking expenses and paying bills. Talk with a financial professional to ensure your loved one’s wishes are being met. Consider creating a convenience bank account with a trusted family member to help manage the money when the disease progresses.
Step 5: Care management
Lastly, you and your family may want to discuss how to finance and facilitate care, especially when the disease progresses and caregiving becomes more demanding.
Have you ever had to care for a loved one with dementia? Did you form a financial plan ahead of time? Share your experience below.
Neither Transamerica nor its agents or representatives may provide tax, investment or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.