Planning for a Loved One With Dementia: Legal Steps to Take Now

📌 The Sooner You Plan, the More Control You Keep

A dementia diagnosis can feel overwhelming—for both the person affected and their family. But while it may seem like life is suddenly out of control, one of the most powerful things you can do is take immediate legal action.

At Alatsas Law Firm, we help Brooklyn families protect loved ones with dementia through strategic estate planning. Acting early—before decision-making capacity is lost—allows you to preserve dignity, assets, and peace of mind for everyone involved.

🧠 Why Planning Early Matters

Dementia progresses over time. In its early stages, your loved one may still have the legal capacity to sign important documents. That window can close quickly, and once it does:

• They may no longer be able to execute a valid will or trust.
• Court intervention (like a guardianship proceeding) may become necessary.
• Family members may disagree over medical or financial decisions.

📌 Early action = more choices and less conflict.

🔑 What are the Key Legal Documents to Put in Place Right Away?

1. Durable Power of Attorney

A durable power of attorney (POA) authorizes a trusted individual (called the agent) to handle financial matters if the person becomes incapacitated.

This includes:

• Paying bills
• Managing real estate
• Handling bank accounts
• Applying for Medicaid

If there’s no POA, the family must go to court to obtain a guardianship—a process that can be costly, slow, and stressful.

🔗 Learn more about power of attorney in NY »

2. Health Care Proxy and Living Will

A health care proxy appoints someone to make medical decisions if the person is no longer able to.

A living will outlines their wishes regarding end-of-life treatment, such as:

• Use of feeding tubes or ventilators
• Resuscitation preferences
• Pain management choices

Together, these documents ensure your loved one’s voice is heard—even when they can’t speak for themselves.

🔗 Learn more about Health Care Proxies and Living Wills »

3. Revocable Living Trust

A revocable trust allows the person with dementia to:

• Retain control of assets while they are still competent
• Appoint a successor trustee to take over later
• Avoid probate
• Ensure a smooth financial transition if they lose capacity

This can also reduce the risk of financial abuse, which is tragically common in seniors with cognitive impairment.

4. Last Will and Testament

Even with a trust in place, a will is essential to:

• Name guardians for minor children (if any)
• Designate who receives any remaining property
• Appoint an executor to handle final affairs

The will must be signed while the person still has legal capacity. If it's challenged later, your attorney’s involvement helps defend its validity.

🛡 Consider Asset Protection Strategies

As dementia progresses, long-term care may become necessary. In Brooklyn, nursing home costs easily exceed $150,000 per year.

Planning options may include:

• Irrevocable Medicaid Trusts
• Spousal Refusal (if married)
• Spend-down strategies to qualify for Medicaid
• Pooled Income Trusts for home care eligibility

These tools help protect the family home and savings while still qualifying for Medicaid.

🔗 Explore Medicaid asset protection options in NY »

🧩 Don’t Wait Until It’s Too Late

Once a person with dementia can no longer understand the documents they’re signing, it’s legally too late to create or revise an estate plan. This can lead to:

• The court appointing a guardian
• Frozen bank accounts or unpaid bills
• Inheritance going to unintended heirs
• Disputes among family members

Proactive planning avoids these outcomes—and gives the individual the power to shape their own future.

📍 Brooklyn Case Example: Planning for a Parent With Early Dementia

Maria, a 70-year-old Flatbush resident, was diagnosed with early-stage Alzheimer's. Her daughter brought her to Alatsas Law Firm while Maria could still make informed decisions.

We helped Maria:

• Sign a power of attorney naming her daughter
• Create a Medicaid trust for her $800,000 home
• Draft a living will and health care proxy
• Update her will to reflect current family wishes

Now, Maria’s daughter can step in when needed—without going to court, and Maria’s assets are protected from long-term care costs.

🔍 Common Mistakes to Avoid

🧠 How to Tell if Your Loved One Can Still Sign Documents

Legal capacity is a nuanced issue, but in general, your loved one must:

• Understand the nature of the documents
• Know the general extent of their property
• Be aware of their family members and intended beneficiaries

At Alatsas Law Firm, we work closely with doctors and use legal safeguards—like videotaped signings or notarized affidavits—to ensure documents will stand up to scrutiny.

🧾 Additional Steps to Consider

• HIPAA Authorization: Allows healthcare providers to share information with designated individuals.
• Home Title Review: Ensure property is properly titled or transferred into a trust.
• Update Beneficiary Designations: Life insurance and retirement accounts pass outside of the will—review these regularly.
• Long-Term Care Insurance Review: If your loved one has a policy, verify what services are covered and when to activate benefits.

💬 Real Client Testimonial

“After my father’s diagnosis, I didn’t know where to start. Teddy explained everything clearly, treated us with compassion, and made sure we had a solid plan in place. It was the greatest gift we could’ve given my dad—and ourselves.”
— Angela S., Bensonhurst

🏁 Let Alatsas Law Firm Be Your Guide

Dealing with dementia is hard enough. Let us take the legal burden off your shoulders. We’ve helped hundreds of families across Brooklyn:

• Plan early to avoid court involvement
• Protect homes from Medicaid liens
• Ensure loved ones retain dignity and autonomy
• Avoid painful family conflicts

📍 Proudly serving Park Slope, Bay Ridge, Gravesend, Dyker Heights, and surrounding neighborhoods of Brooklyn.

📞 Call (718) 233-2903 or
🔗 Schedule a confidential planning consultation »