**Exploring Financial Planning Resources for Alzheimer’s-Affected Families**
Alzheimer’s disease is a progressive condition that affects not only the person diagnosed but also their family. One of the most significant challenges families face is managing the financial impact of the disease. Here, we will explore some essential financial planning resources tailored for Alzheimer’s-affected families.
### Understanding the Financial Burden
Alzheimer’s disease can have a devastating financial impact on families. The costs associated with treating the disease are substantial, and they can start long before a diagnosis is made. Research shows that people with Alzheimer’s often experience changes in financial behaviors, such as missing payments, making impulsive purchases, and falling prey to scams, even before they are diagnosed[1].
### Early Stage Financial Challenges
In the early stages of Alzheimer’s, individuals may experience difficulty tracking monthly bills, maintaining a budget, and performing basic math calculations. They might also make unusual or out-of-character purchases. These changes can lead to late fees and interest charges on credit cards and personal loans, as well as the heightened possibility of foreclosure on a home[1].
### Practical Steps for Financial Management
To manage the finances of a family member with Alzheimer’s, several practical steps can be taken:
1. **Automatic Bill Payments**: Set up automatic bill payments for regular expenses to ensure that bills are always paid on time.
2. **Simple Monthly Budget**: Create a simple monthly budget together to track income and expenses.
3. **Financial Advisor**: Work with a financial advisor who has experience with Alzheimer’s planning. They can help you navigate the complex financial landscape and make informed decisions.
4. **Power of Attorney**: Discuss power-of-attorney options while the person with Alzheimer’s still has the capacity to make decisions. This ensures that someone you trust can manage their financial affairs if they become unable to do so.
### Innovative Financial Tools
There are innovative financial tools designed specifically for families living with dementia. One such tool is Sibstar, a flexible debit card and app that helps families manage everyday spending securely. Sibstar was created by Jayne Sibley, who noticed her mother’s struggles with managing daily finances due to Alzheimer’s. The app allows users to load money and manage how and where it is spent, ensuring that the person with dementia can remain independent while their finances are protected[2].
### Legal Planning
Legal planning is crucial for families dealing with Alzheimer’s. This includes setting up durable power of attorney, durable power of attorney for health care decisions, and a healthcare treatment directive (living will). These documents grant legal rights and powers to another person, allowing them to make decisions on your behalf if you become incapacitated. Without these documents, a court-appointed conservator or guardian might be necessary, which can be a stressful and costly process[4].
### Medicaid Planning
Medicaid planning is another essential aspect of financial planning for Alzheimer’s-affected families. Medicaid covers some healthcare costs, including nursing home care, but it requires careful planning to qualify without depleting your assets. An elder law attorney can help you maximize the amount of money your family can keep while qualifying for Medicaid benefits[4].
### Conclusion
Managing the finances of a family member with Alzheimer’s requires a comprehensive approach. By understanding the financial challenges associated with the disease, using practical financial management tools, and engaging in legal and Medicaid planning, families can better navigate the complexities of caring for a loved one with Alzheimer’s. It is essential to start these conversations early and seek professional advice to ensure that the person with Alzheimer’s can maintain their financial independence and dignity for as long as possible.
