Dementia Diagnosis? You Can Still Plan Your Estate
At Pettis Webber Pacific, we know there are a lot of misconceptions about estate planning, especially when it comes to medical conditions like dementia. One of the most common questions we hear is: “Can someone with a dementia diagnosis still create or update their estate plan?”
The answer is yes—in many cases, they can.
A Diagnosis Doesn’t End the Conversation
A dementia diagnosis does not automatically mean a person is unable to make legal decisions. Legal capacity is determined by the individual’s ability to understand and communicate their decisions at the time documents are signed. That means if a person is still able to recognize family members, understand their assets, and express their wishes, they may still be able to take important steps in their estate planning.
What This Looks Like in Real Life
Imagine your parent has recently been diagnosed with early-stage dementia. They still manage their day-to-day affairs, recognize loved ones, and understand the value of their home and bank accounts. In this situation, they can still:
- Establish or revise a power of attorney
- Update or create a will
- Set up or modify a trust
- Clarify their medical and financial wishes
In some cases, extra precautions—such as a medical evaluation or additional attorney documentation—can be used to support the validity of the documents and protect against future challenges.
Steps You Can Take Right Now
If you or a loved one has received a dementia diagnosis, the best thing you can do is take action sooner rather than later. Here are five important steps to consider:
1. Start Early
The earlier you begin estate planning after a diagnosis, the more opportunities you have to create a comprehensive, legally sound plan. Waiting can limit your options if capacity declines.
2. Get a Medical Evaluation
If there are concerns about capacity, a physician’s evaluation can help document mental clarity. Experienced elder law attorneys also make legal capacity determinations during the planning process.
3. Establish a Power of Attorney and Health Care Directive
These two documents are essential. A power of attorney ensures someone you trust can manage your health and finances if you become unable to do so. A health care directive puts your medical preferences around end-of-life care in writing, and you may be able to add other medical preferences into the health care directive to help document your wishes.
4. Review Any Existing Estate Plans
Now is the time to revisit your existing plan. Are the right people named to act on your behalf? Are all the necessary powers included? Do you need to add or remove any beneficiaries? Do you need to include protective provisions for how a family member is to receive their inheritance? Have laws changed since you last updated your plan? This is also a great time to make sure your loved ones know where to find important documents, legal and otherwise.
5. Work with an Experienced Elder Law Attorney
An experienced elder law attorney can guide you through the process, ensuring your documents are legally sound and tailored to your needs. They’ll also help you include specific powers and protections that may become necessary as dementia progresses.
Don’t Let a Diagnosis Stop You from Planning
Receiving a dementia diagnosis can feel overwhelming, but it doesn’t mean you’ve lost your right to make decisions. In fact, it’s the perfect time to make sure your wishes are known and your loved ones are prepared.
Whether you’re creating a plan for the first time or updating documents to reflect your current needs, our team is here to help. A diagnosis may begin the conversation about estate planning, but it certainly doesn’t end it.
Click here to schedule a consultation and let us help you take the next step with confidence.
