Helping Make Financial Plans for Alzheimer’s Patients: A Complete Guide for Families

Caregiving
Written By Ashley Campbell

Managing finances is a key part of maintaining independence, but for individuals living with Alzheimer’s disease, financial planning becomes increasingly challenging as the condition progresses. For families, the earlier you begin planning after diagnosis, the more peace of mind you’ll have knowing your loved one’s future care and dignity are protected.

Financial planning for Alzheimer’s is not just about numbers—it’s about creating a secure path that ensures your loved one receives quality care while minimizing stress for the family.

Why Financial Planning for Alzheimer’s Is Crucial

According to the Alzheimer’s Association, the average lifetime cost of care for someone living with Alzheimer’s exceeds $350,000. Early financial planning helps families:

  • Protect assets while ensuring care needs are met

  • Minimize financial strain on caregivers

  • Prepare for the progression of the disease

  • Reduce stress and uncertainty during crisis situations

By putting a plan in place early, you safeguard your loved one’s future and ensure their wishes are respected.

Key Steps to Create a Financial Plan of Care

1. Gather Essential Documents

Start by organizing all critical documents that will make managing finances easier as responsibilities shift. Important records include:

  • Bank and brokerage account information

  • Insurance policies

  • Retirement accounts (401(k), pensions, IRAs)

  • Property deeds, mortgage papers, and ownership documents

  • Social Security and Medicare records

  • Outstanding bills and income sources

  • Investment certificates (stocks, bonds, etc.)

Setting up automatic bill payments is also highly recommended to avoid missed deadlines.

2. Establish Legal Protections Early

Since Alzheimer’s is progressive, it’s important to set up or update legal documents while your loved one can still make informed decisions. Consider:

  • Living Will – Outlines medical treatment preferences at end of life.

  • Last Will & Testament – Ensures assets are distributed according to their wishes.

  • Power of Attorney (POA) – Grants a trusted person authority to make legal and financial decisions.

Consulting an elder law attorney is essential to avoid delays or disputes later.

3. Review Insurance Options and Benefits

Explore available insurance and benefit programs to cover healthcare and caregiving costs:

  • Medicare & Medigap – Covers hospital and medical expenses but may need supplemental coverage.

  • Long-Term Care Insurance – Helpful if purchased before diagnosis.

  • Life Insurance – May offer loans or accelerated benefits.

  • Medicaid – For individuals with limited income and assets.

  • Veterans Benefits – Assistance programs for eligible veterans and their families.

4. Adjust Financial Portfolios for Care Needs

Your loved one’s retirement funds may need to shift from travel or legacy planning to covering care costs. Work with a financial advisor to:

  • Rebalance investments to reduce risk

  • Consider establishing a trustee IRA

  • Ensure beneficiaries are updated and properly documented

5. Protect Against Financial Exploitation

Alzheimer’s patients are at higher risk for scams and financial abuse. Safeguards include:

  • Registering on the National Do Not Call Registry

  • Monitoring for unusual spending patterns

  • Setting spending limits or joint accounts

  • Ensuring only trusted individuals have financial access

Even if your loved one can’t manage all their finances, giving them small amounts of cash for personal spending can help maintain independence and dignity.

Supporting Financial and Care Decisions Together

Managing Alzheimer’s is not just about financial stability—it’s about ensuring compassionate daily care. Balancing paperwork, insurance, and medical costs can be overwhelming for families already dealing with the emotional impact of the disease. Partnering with experienced in-home care providers can reduce stress while ensuring your loved one receives the personalized support they deserve.

At Hopeful Haven Home Care in Lawrenceville, Georgia, we specialize in providing compassionate, professional Alzheimer’s and dementia care. Our caregivers assist with daily routines, safety, and companionship while giving families peace of mind. By integrating financial planning with reliable in-home care, your loved one can live with dignity in the comfort of home.

FAQs About Alzheimer’s Financial Planning

Q: When should we start financial planning for Alzheimer’s?
As soon as a diagnosis is made. Early planning allows your loved one to participate in decisions and ensures legal protections are in place before cognitive decline worsens.

Q: Who should we talk to about financial and legal planning?
Consult an elder law attorney for legal documents and a certified financial planner to structure accounts and benefits.

Q: Does Medicare cover Alzheimer’s care?
Medicare covers medical treatments and hospital visits but does not typically cover long-term custodial care. Supplemental insurance or Medicaid may be necessary.

Q: How can I protect my loved one from scams?
Limit telemarketing calls, monitor bank accounts, and ensure financial responsibilities are transferred to a trusted POA as soon as possible.

Ashley Campbell
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