Complete durable financial and health-care powers of attorney as early as possible after an Alzheimer's diagnosis, while the person can still make decisions. A durable power of attorney names someone to act for the person and remains effective after incapacity. These documents cover different decisions, so most families need both. This checklist explains what to prepare, whom to appoint, how to reduce financial abuse risk, and what the documents cannot do.
Medical information disclaimer: This article is for general educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a physician or other qualified health professional about symptoms, medications, tests, or treatment decisions.
Table of Contents
- Act while the person still has capacity
- Prepare both financial and health-care documents
- Choose agents and discuss the person's wishes
- Add safeguards against financial abuse
- Know what the power of attorney cannot solve
Act while the person still has capacity
Legal capacity generally means understanding a decision, its consequences, and the available choices. The required level of capacity can vary by document and state. The person with Alzheimer's keeps their decision-making rights while they have capacity.
Caregivers should support the process without pressuring them or treating the diagnosis itself as proof of incapacity. The National Institute on Aging recommends completing financial and health-care powers of attorney while the person can still make and communicate decisions. Waiting may eliminate that option and force the family to seek court authority later. See the National Institute on Aging's legal and financial planning guidance.
Prepare both financial and health-care documents
A durable financial power of attorney authorizes an agent to manage matters such as money, property, income, assets, and investments. Confirm that the document is durable; a non-durable power of attorney ends when the principal becomes incapacitated. A health-care power of attorney is a separate document.
It authorizes a chosen health-care agent to make medical decisions when the person cannot, including decisions about providers, treatments, care settings, feeding tubes, and do-not-resuscitate orders. The Alzheimer's Association explains the roles of both documents. Use this preparation checklist:.
- Complete a durable financial power of attorney.
- Complete a separate health-care power of attorney.
- Record the person's treatment and care preferences clearly.
- Check the capacity and signing requirements that apply locally.
- Review names, contact details, and successor appointments before signing.
Choose agents and discuss the person's wishes
Choose agents who are highly trusted and able to handle the assigned responsibilities. The financial and health-care agents may face very different decisions, so consider each role separately. Name at least one successor for each position in case the first agent cannot serve.
Then discuss the person's wishes while they can explain what matters to them, including financial priorities, preferred care settings, and medical treatment choices. After completion, provide copies to the care partner, attorney, and relevant clinicians. Keep the originals secure but accessible enough that the appointed agents can locate them when needed.
Add safeguards against financial abuse
A financial power of attorney can grant broad authority without regular oversight. The Consumer Financial Protection Bureau advises telling other trusted people about the arrangement and requiring regular reports of the agent's transactions.
Review the CFPB's power-of-attorney safeguards. Build a current financial inventory so the agent knows what exists and what needs attention: Keep the inventory current. Trusted contacts and duplicate account statements can give another reliable person visibility into financial activity.
- Bank, investment, and retirement accounts
- Income sources and debts
- Insurance policies
- Social Security information
- Property and other major assets
Know what the power of attorney cannot solve
A financial power of attorney does not let an agent manage Social Security or Supplemental Security Income benefits. If that becomes necessary, the caregiver must apply to the Social Security Administration and be appointed as representative payee.
The SSA explains the representative-payee requirement. If incapacity occurs before valid powers of attorney are in place, family or friends may need to pursue guardianship or conservatorship through court. That process can be lengthy, expensive, and public, making early document preparation especially important.
