When a family member experiences cognitive decline, it can be a distressing experience for both them and their loved ones. Complex conditions such as dementia can make people very vulnerable. As May is National Mental Health Awareness Month, we’ve shared a guide to help families prepare for both the emotional and financial toll of cognitive decline.
At Balance: Wealth Planning, our chosen charity for 2025 is the Alzheimer’s Society. We will be hosting a variety of events and fundraising activities to raise money for this important charitable organisation. The Alzheimer’s Society provides a range of support and resources to help families navigate Alzheimer’s Disease and other forms of dementia.
Spotting the signs of dementia
When someone starts to suffer from a form of cognitive decline like dementia, there are often small signs that can be easily overlooked. Forgetfulness, mood changes, and occasional disorientation can sometimes be mistakenly associated with old age. However, as people’s cognition worsens, there can be significant personality changes and other problems can develop. Individuals can eventually become unsafe and unable to care for themselves.
One of the most distressing aspects of this type of condition is the fact that those living with dementia may not realise or accept their diagnosis. As a result, a partner, spouse or adult child will take on a loved one’s care, which may not be recognised by the sufferer.
Caring for someone with a form of cognitive decline can have a significant impact on your daily life and wellbeing. Known as the ‘sandwich generation’, middle-aged people are increasingly finding themselves caring for both their children and their parents.
Finding suitable care
When someone is in cognitive decline, it’s worth considering domiciliary care to assist with daily tasks such as washing and dressing, housework or preparing meals. However, in many instances with conditions like dementia, there may come a point when someone is unsafe to live at home. As an example, they may forget how to use kitchen equipment such as ovens, hobs and kettles, putting both themselves and others at risk.
If your loved one has a Health & Welfare Lasting Power of Attorney, this will allow you to make decisions about their medication and social care. You will also be able to choose a suitable care home for them to live in.
When it comes to finding a care service or care home, always check the Care Quality Commission (CQC) website. They have a list of regulated care providers, and you can view their inspection reports to see how they are rated. It’s advisable to read these reports carefully to assess factors such as safety, effectiveness, and how caring they are, etc.
When it comes to assessing the financial position of someone needing to go into a care setting, local authorities have a means-tested system in place. Care costs will depend on the person’s needs and individual level of wealth. For more information on care home fees, please read Our guide to long-term funding for care homes.
Dementia and bank accounts
Forms of cognitive decline such as dementia can make money management very problematic. Without Lasting Powers of Attorney in place, it can be very difficult for family members to manage their loved ones’ financial affairs, Also, it’s worth noting that conditions such as Alzheimer’s can put people at greater risk of fraud and scams. Therefore, careful money management is essential for safeguarding a loved one’s finances.
Without a Finance & Property Lasting Power of Attorney in place, you might not be able to manage your loved one’s financial affairs and household bills. This type of Lasting Power of Attorney will give you access and control over their bank accounts.
How to prepare for later life
When you are preparing for later life, there are a few important factors to consider. Cognitive decline doesn’t always affect the elderly. Many people are affected by early onset dementia, which can affect people in their middle-aged years. Therefore, it’s important to ensure that you have Lasting Powers of Attorney in place. This will give your family, or those you choose to become your attorneys, the ability to manage your affairs.
It’s recommended to have more than one attorney, and you don’t have to nominate your next of kin. You could choose your partner or a close friend. However, if you were to lose cognitive decline before arranging Lasting Powers of Attorney, the local authority would take over your care and financial affairs. The Court of Protection would nominate a deputy to make decisions about your life and future, who may not necessarily be a family member.
Along with Lasting Powers of Attorney, it’s important to have made a Will that reflects your wishes so you can choose who inherits from your estate. There might also be ways for you to safeguard your property and your legacy in the form of trusts. Our financial planners can help you with estate planning and we will look at ways to reduce the inheritance tax burden. We can also help you navigate the potential cost of care in later life so you can plan ahead.
Chartered Financial Planners
Cognitive decline can be a distressing experience, and it can have a huge impact on both the affected person and their loved ones. Therefore, it’s wise to put in place certain measures such as Lasting Powers of Attorney, a Will, and other forms of financial protection as early as possible in life.
At Balance: Wealth Planning, we can help you prepare for later life by carrying out a financial review and assisting you with your estate planning. Our financial planning team care about our clients and will work hard to ensure you have the right protection in place should the worst happen.
If you would like advice on how to protect and prepare your finances for later life, get in touch to speak to our financial planners.
