If you have a family member who has been diagnosed with Alzheimer’s disease or is beginning to show symptoms, you will face some real challenges. Navigating the Alzheimer’s disease experience involves a long journey, and there are no easy answers to how to manage your emotions. But you can at least resolve some of the financial issues involved to give you a greater sense of control.
Here are some moves to consider:
Plan childcare costs and identify insurance coverage. The list of medical expenses related to Alzheimer’s disease is long and includes ongoing medical treatments, medical equipment, home security modifications, prescription drugs and personal care supplies. As a caregiver, you will want to know the extent of your loved one’s health insurance: health insurance, supplemental policies, veteran’s benefits if applicable, etc. A big question is what coverage they might have for adult day care, full-time home care and residential care services, and other long-term care options. Long-term care is one of the largest health care costs not covered by Medicare, so you’ll need to determine if your loved one has a long-term care policy or another insurance policy with a care rider. long term.
Identify assets and debts. You will need to know your family member’s financial situation, both what they have (bank accounts, investments, property, etc.) and what they owe, such as credit card debt, mortgage, lines of credit, etc. This knowledge will be essential if you obtain a power of attorney to take over your loved one’s finances.
Look for tax breaks available to caregivers. If you are a carer, you may have to pay for some care costs out of pocket. Therefore, you may benefit from certain tax credits and deductions. These benefits vary by state, so you should consult your tax advisor to determine your eligibility.
Make sure the necessary legal documents are in place. As a caregiver, you may need to ensure that certain legal documents are in place, such as an enduring power of attorney for finances, which allows you to make financial decisions for your loved one with Alzheimer’s disease, and a durable power of attorney for health care, which allows you to make health care and medical decisions on their behalf. It is important that these and other necessary documents be drawn up before a person is diagnosed with Alzheimer’s disease or when they are just beginning to show the first signs of the disease, so that they can understand what documents she signs. If you wait until they no longer have that cognitive ability, things will get much more difficult. You can apply to become a conservator, which grants decision-making abilities similar to a power of attorney, but the conservatorship process is time-consuming and may involve legal proceedings. To avoid this potential difficulty, work with your tax and legal professionals to ensure that all relevant legal documents are current and up-to-date.
Finally, you don’t have to go it alone. To help you deal with the emotional challenges of caregiving, you can find local Alzheimer’s disease support groups on alz.org who can offer practical suggestions for coping. When it comes to financial issues, consider working with a financial professional who can review your family’s overall situation and recommend appropriate action.
A diagnosis of Alzheimer’s disease will change the lives of everyone in your family. But as a caregiver, you can help ease the burden.
Jennifer Barrett (AAMS) is a local financial advisor to Edward Jones.
225-612-0413 | jennifer.barrett@edwardjones.com
Edward Jones. SIPC member.
Edward Jones, its employees and its financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate planning attorney or qualified tax advisor about your situation.
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