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 might need, but there are have financial concerns you should address. As soon as you can, focus on gathering information and weighing your options. Here is a list of the top 8 things to do financially after you receive a diagnosis of Alzheimer’s Disease:
1. 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, in a Connecticut assisted living facility, memory care costs around $7,000 a month. Considering the average Alzheimer’s patient lives another 8 - 10 years, this care can cost half a million dollars. Sign up for the Senior Services Guide to recieve information about nursing homes and assisted living facilities in Southeastern Connecticut.
2. Find the Public Programs that Benefit You
An Alzheimer’s Disease diagnosis may qualify you for many government programs to assist you and your family. Visit Senior Resources, the Area Agency on Aging located in Norwich, to determine what programs exist and their eligibility criterion. Read Chapter 3 of our Senior Services Guide for a list of federal and Connecticut programs. Discuss with an elder law attorney the appropriate programs and how to qualify for them. Join and participate in support groups for Alzheimer’s to find out what is available.
3. Consider Transferring Your Assets to an Irrevocable Trust
If you do not need public benefits, consider putting your assets in a trust for the benefit of your family. Choose an independent Trustee such as 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, as a prudent investor, will have the duty to manage your property and provide for your care until you die. Upon your death, the Irrevocable Trust document controls who will receive your property and in what manner.
4. Consider Transferring Your Assets to Your Spouse
If you will need public benefits to provide for your care, and you entrust your spouse to act in your best interest, consider giving your property to your spouse. As you decline, your spouse will then have full power to manage the family finances. Although transferring your assets to your spouse will not help you obtain Medicaid (Title 19), it will, however, protect your assets from those who prey upon vulnerable seniors, and it will simplify your estate upon your passing.
5. 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 own care. You can avoid that 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 of your testamentary trusts 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 consequently manage the property as Trustee.
6. Sign a Durable Power of Attorney
You will not be considered legally able to implement your financial decisions if Alzheimer’s Disease renders you unable to sign documents and make financial decisions. By signing a Durable Power of Attorney, you grant another person the power to sign financial documents for you, especially if you become too addled to do so.
7. Consolidate Accounts
You might have multiple brokerage accounts and stocks held in street name or in a dividend reinvestment plan (DRIP). As your Alzheimer’s Disease progresses, 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.
8. Prepay Your Funeral
There are no public benefits program to pay for your funeral unless you are a veteran. If you do not want to burden your family with your funeral costs, visit a funeral home and purchase a prepaid funeral contract.
Plan And Take Action Now. As your Alzheimer’s Disease progresses, you will need increasingly more assistance from others. In addition to your Wills and Trusts, an elder law attorney can help you identify and qualify for government assistance, financial planning and transferring assets.
