A diagnosis of Alzheimer’s Disease can send you and your caregivers reeling. Not only are there many things to learn about the disease and the many services you may need but you will have financial concerns to address. As soon as you can, focus on gathering information and weighing your options. Here is a list of the top 11 things to do financially after you receive a diagnosis of Alzheimer’s Disease:
Investigate the Cost of Alzheimer's Care
Explore the costs of in-home care, assisted living facilities, and nursing homes in your area. The cost of Alzheimer’s care largely depends on the level of care needed at the time. Typically, Alzheimer’s care costs between $5,000 and $7,000 a month in a Connecticut assisted living facility. Considering the average Alzheimer’s patient lives between 8 and 10 years, you may spend over half a million dollars on your care. See our Senior Services Guide for information about nursing homes and assisted living facilities in Southeastern Connecticut.
Find the Public Programs that Benefit You
Now that you have a diagnosis, you may qualify for many government programs to assist you and your family. Visit Senior Resources, the Area Agency on Aging, to determine what programs could assist you and what are the eligibility criterion. Read Chapter 3 of our Senior Services Guide for a list of federal and Connecticut programs and visit with an elder law attorney to discuss the programs and how to qualify for them. Join the Alzheimer’s Association and participate in their support groups to find out what is available.
Create a Small Joint Checking Account
A small joint checking account will allow your trusted spouse, child or friend to pay your day-to-day bills. What is “small?” We advise $20,000 as an initial amount in the joint account. As the bills mount, it will help to have another person who can keep your bills current.
Consider Transferring Your Assets to an Irrevocable Trust
If you do not need public benefits, you can put your assets in a trust for the benefit of your family with an independent Trustee like a close friend, a bank, an attorney or an accountant. By creating an Irrevocable Trust, you will no longer have the responsibility of managing your assets. Your Trustee will have the duty to manage your property as a prudent investor and provide for your care until you die. The trust document controls who will receive your property and in what manner upon your death. Visit with an elder law attorney to determine if transferring your assets to an irrevocable trust is right for you.
Consider Transferring Your Assets to Your Spouse
If you will need public benefits to provide for your care and you trust your spouse to act in your best interest, consider giving your property to your spouse. That way as you decline, your spouse will have full power to manage the family finances. Transferring your assets to your spouse will not help you obtain Medicaid (Title 19), but it will protect your assets from those who prey upon the disabled and it will simplify your estate upon your passing. Visit with an elder law attorney to decide whether to transfer your assets to your spouse.
Have Your Spouse Sign a Community Spouse Will
If your spouse dies, you probably do not want the family’s property consumed by the cost of your care. How do you avoid that result? By having your spouse sign a Will that creates a trust for you and a trust for your children. Because of a Connecticut case called Skindzier v. Commissioner of Social Services, neither testamentary trust will render you ineligible for Title 19 (Medicaid). Thus, you can receive public benefits and preserve the family assets. The income from the trust for you can provide for your care. One of your children will serve as Trustee of each trust and will thus manage the property as Trustee.
Sign a Durable Power of Attorney
If Alzheimer’s renders you unable to sign documents and make financial decisions, you will not be considered legally able to implement your financial decisions. By signing a Durable Power of Attorney, you confer on another person the power to sign financial documents for you even if you become too sick to do so.
Consolidate Accounts
You may have multiple brokerage accounts and stocks held in street name or in a dividend reinvestment plan (DRIP). As your Alzheimer’s progresses, diversification and saving brokerage fees are no longer a major concern. Consolidating all of your investments into one brokerage account will greatly simplify your financial life and ultimately your estate.
Organize Your Insurance & Retirement Documents
Loved ones spend a lot of time hunting for long-term care insurance policies, life insurance policies, and health insurance information. They often need to find annuity contracts and IRA beneficiary designation forms. Assembling all of those documents before your dementia renders you unable to do so will make your caregiver’s job much easier.
Find Important Government Documents
Assemble your social security card, birth certificate, marriage certificate, naturalization papers, green card, and DD-214 military discharge papers. You may be the only one who knows where they are kept because they may have been issued 50 or more years ago. As your Alzheimer’s progresses, you may have less capacity to find them.
Confirm all Beneficiary Designations in Writing
Most people designate beneficiaries when they set up an account. It is common for people to set up the account 10 or more years ago and have no idea who you designated as beneficiary. Now is the time to confirm who is to receive the assets from your various accounts and change them if they do not conform to your current estate plan.
Prepay Your Funeral
There are no public benefits program to pay for your funeral. If you do not want to burden your family with your funeral costs, visit a funeral home and purchase a prepaid funeral contract.
As your Alzheimer’s progresses, you will need more and more assistance from others. Only by planning and taking action now will you rise to the challenge of managing the financial consequences of Alzheimer’s Disease. As you can see from this list of financial steps to take, an elder law attorney can help with much more than just wills and trusts. An elder law attorney can help you identify and qualify for government assistance, help with financial planning and help with transferring assets. Call our law firm today at (860) 442-0150 to learn more about how we can help you.
