Managing financial and legal matters

Although it may not be the obvious reaction to a diagnosis of AD, financial and legal affairs are some of the first matters that need to be taken into hand. As the disease progresses, the person with AD will eventually become legally unable to control their own affairs, and this can cause many problems. However, there are several ways in which future decisions can be safely arranged in advance. If this is done promptly, then the person with AD will be able to make their own wishes known, and make sure that their future life and care will proceed in the way that they choose. As a result, the family and carers of a person with AD will have an enormous burden lifted.

Finances

When a person is first diagnosed with AD, it is important to sort out their financial affairs as soon as possible. If finances are well organised at this point, it can prevent difficulties arising when the person reaches the more severe stages of the disease. Such difficulties may include loss of the ability to deal with payments, savings and other money matters and, if left too late, it may become difficult to legally arrange for another person to take care of these issues.

For all money matters, it is best to get professional advice on the most appropriate schemes and benefits available for the individuals involved. As well as specific financial organisations, it is also useful to speak to someone from a local or national AD association, who will be able to offer the benefit of their experience in this area.

Enduring power of attorney

An enduring power of attorney (EPA) is a legal document that is commonly used by people who have been diagnosed with a progressive illness such as AD.

An EPA is designed so that a person is able to transfer the management of their financial affairs to another named individual(s) – the attorney. The attorney can be any individual
over 18 that the person chooses – they can, but do not need to be, related to the person. The specific powers that are given to the attorney are described in the EPA, and can gradually be
brought into use as the person with AD becomes less capable of dealing with their own financial matters, for example, paying bills or dealing with the bank.

Although such a measure may seem extreme at the point of diagnosis, it is important that the EPA is organised well in advance, while the person with AD is still judged to be capable (this may require a doctor’s statement). If it is left too late, then the friends and relatives of the person may have to turn to the Court of Protection to try to establish another arrangement.

Advance healthcare directive (or ‘living will’)

An advance healthcare directive or ‘living will’ includes healthcare-related instructions made by a person in sound mind who believes that in later life they will become incapable of making these decisions for themselves. This is especially relevant for someone with a disorder such as AD, who will gradually become less able to communicate decisions, or understand the choices being offered.

The living will can include the person’s preferences for type of medication received, or long-term care choices, as well as more personal care matters such as diet or clothing. It can be helpful to discuss the choices in the living will with a doctor to make sure that the person with AD is fully informed about the decisions they are making.

In general, a living will is a legally binding document that can either be instructional, where the person gives precise directions, or proxy, where another individual is nominated to make any decisions as they arise. A living will only comes into use once the person with AD is judged (by their doctor) to be incapable of making such decisions independently.

An important aspect of the living will is that it takes away a number of pressures from the family or carer, who may find it difficult to make such important decisions without knowing the
person’s own opinion. This responsibility can cause a lot of extra worry and guilt – feelings that can be avoided if the person’s own preferences have been written in the living will in the first place.

Trusts

A trust is a way in which a person can transfer some or all of their assets into another individual’s name, and this can either be acted upon while the person is alive, or put in place after death via an instruction in the will. The person who receives the assets must deal with them as directed in the trust document.

Trusts can be simple or complex, and their establishment usually requires advice from a lawyer to ensure that the trust is legal. Trusts can be a useful way to relieve some of the burden of inheritance tax.

Making a will

Making a will ensures that when a person dies, all their belongings (their assets) are distributed in the way that they wish. This is as important for a person with AD as it is for
anyone else, although the will must be written while the person is still judged to be capable of making rational decisions.

If a person dies without making a valid will, then they are said to have died ‘intestate’. In such cases, the state decides how their assets are to be divided between family members. This can be a long and distressing process for the family involved, especially as it may not be consistent with the person’s wishes, and may not necessarily include unrelated ‘partners’ or friends. In addition, not making a will can lead to the eventual benefactors paying more inheritance tax than would be otherwise necessary.

Making a will can be a straightforward process, and there are many books and leaflets available providing useful instruction. In order to prevent critical mistakes, it is advisable to ask a solicitor to oversee the process. This ensures that the will is legal and also helps to avoid any poor wording that may misrepresent the person’s wishes.