If your spouse has recently been diagnosed with dementia, you may feel overwhelmed. It is very hard to accept this emotionally, but you may also be worried about paying for their care and navigating the care they may need. As your spouse’s condition progresses, they may lose the ability to make decisions, manage finances, or advocate for themselves. Now is the time to ensure your legal and financial plans are in place before it’s too late.
Without proper planning, you could face unnecessary legal hurdles, financial strain, and risk losing assets to long-term care costs. To protect yourself and your spouse, here are three critical steps you should take as soon as possible.
1. Get Your Estate Plan in Order
Many spouses assume their current estate plan is sufficient—but once dementia is in the picture, your legal documents need to be updated. You will need to work with an elder law attorney to ensure your plans reflect this new reality.
What You Need to Do:
Update Wills & Trusts – Who will manage your spouse’s care and finances if you pass away first? Consider a will with a testamentary trust to protect any assets you leave behind. This trust can shield assets from Medicaid while ensuring funds are available for your spouse.
Remove Your Spouse from Critical Roles – If your spouse is listed as your power of attorney, health care proxy, executor, or trustee, you must update these documents immediately. If their condition worsens, they won’t be able to act on your behalf legally. Choose a trusted adult child, relative, or professional fiduciary instead.
Consider whether your Spouse still has capacity– If your spouse is in the early stages of dementia, they may still be able to execute a power of attorney or health care proxy. As dementia progresses, it will be too late, and court intervention may be required later.
Why This Matters:
Without these updates court involvement may be required to make even basic financial and medical decisions for your spouse. Proactive planning now can save time, money, and stress later.
2. Review How Your Assets Are Titled
Dementia not only affects decision-making, but it can also deplete your life savings. You must understand what assets you own and how the accounts are titled.
What You Need to Do:
Check Jointly Owned Assets – Many couples own homes, bank accounts, and investments jointly. However, if your spouse eventually needs Medicaid for long-term care, joint ownership could create complications. An elder law attorney can help you determine if you should change the title on assets to protect them.
Reassess Beneficiary Designations – Review life insurance policies, retirement accounts, and other assets with named beneficiaries. You may need to adjust these designations so that funds don’t go directly to your spouse, which could impact their ability to qualify for Medicaid.
Why This Matters:
If assets are not properly structured, your spouse may have to spend down savings to qualify for Medicaid, leaving little for their care or your family’s future. An elder law attorney can review your unique situation and make recommendations.
3. Plan for Long-Term Care Costs
The cost of dementia care can be staggering—whether you’re paying for in-home care, assisted living, or a nursing home. Without a plan, you could deplete your savings quickly.
What You Need to Do:
Understand Medicaid Eligibility Rules – Medicaid can help pay for home care, assisted living facility care (rare but possible), or care in a nursing home, but there are strict income and asset rules to qualify. A Medicaid plan provides a roadmap to ensure your spouse gets the best care possible while protecting assets.
Learn About Spousal Protections – If your spouse needs nursing home care, you don’t have to lose everything. Medicaid allows the healthy spouse (the “community spouse”) to keep some assets and income. Working with an elder law attorney can help you figure this out and protect your assets.
Understand Long-Term Care Insurance Options – If you have long-term care insurance, review your policy to understand what is covered and how to use it effectively. If you don’t have a policy, discuss whether any planning options exist to help offset future care costs.
Why This Matters:
Dementia care can cost $15,000+ per month. Without proper planning, families are often forced to spend down assets before Medicaid kicks in. The earlier you prepare, the better your options are, and the more you can protect your savings while ensuring quality care for your spouse.
Take Action Now to Protect Your Future
When your spouse is diagnosed with dementia, time is of the essence, especially in the early stages. The longer you wait, the fewer options you’ll have to protect your assets and ensure your spouse receives the best care. By taking these three critical steps now, you can prevent unnecessary financial losses, avoid involving the court, and secure peace of mind for your family.
We are experienced Massachusetts elder law attorneys ready to help you plan.
Senior Solutions, Attorneys at Law, is an Estate Planning and Elder Law firm serving the Greater Boston, Massachusetts area since 2001. We are ready to help you with Medicaid Planning, Estate Planning, Probate, Guardianship & Conservatorships, Special Needs Trusts, and Fiduciary Services. We are here to help. Please call our office at 617-489-5900 or schedule a brief free consultation (offered to new clients) by clicking the button above.
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