Protecting a Spouse After a Dementia Diagnosis

Protecting a Spouse After a Dementia Diagnosis- With more than 7 million Americans living with Alzheimer’s disease and several million more living with other types of dementia, families are concerned about their future and their finances. Putting protection in place for spouses is vital, as detailed in the article “My Beloved Husband Has Early-Stage Dementia. He Is ‘Doing Well,’ but How Do I Protect Our $1.6 Million Savings Right Now?” from Kiplinger. Here’s how to start preparing.

Durable Power of Attorney. A major issue with dementia is the risk of reckless financial decisions and being vulnerable to scams or forgetting to pay bills. Protecting a lifetime of savings requires the healthy spouse to be empowered to make financial decisions. Some recommend setting “guardrails” rather than taking complete control, at least in the early stages. But the goal is to have the ability to take control, and doing so requires a POA so the healthy spouse can manage the couple's bank accounts, regardless of who owns them.

This is the time to check all property to find out whose name is on the account or the title, for real estate. Trusts should also be reviewed, if the spouse with dementia is the trustee, they will need to be modified.

Healthcare directives also need to be addressed. A medical Power of Attorney needs to be in place. If one was created more than three years ago, it should be updated. All POAs need to be reviewed to ensure they grant the healthy spouse complete control and don’t require her to go to court to prove her husband’s incapacity.

Automated bill paying may make life easier, minimizing the possibility of missed or incorrect payments. A financial advisor may be able to add a trusted contact designation to accounts, allowing them to alert the healthy spouse to any unusual activity. Restricting the spouse with dementia’s ability to access accounts may be a difficult conversation, but it may be necessary.

The person’s last will and testament needs to be reviewed as soon as possible. Once someone becomes incapacitated, they are no longer permitted to sign legal documents. Updating all documents, including the will, POAs, advance care directives, and any other estate planning documents, becomes urgent once a dementia diagnosis is made.

If no estate planning has been done, it is even more important to meet with an experienced estate planning attorney to ensure all protections are in place.

Facing the challenges of dementia or any other progressive disease at any stage in life is difficult. Having a plan to protect all family members can alleviate some of the challenges that lie ahead.

Schedule your phone consultation: THE LAW OFFICES OF CLAUDE S. SMITH, III

Protecting a Spouse After a Dementia Diagnosis

Reference: Kiplinger (May 12, 2026) “My Beloved Husband Has Early-Stage Dementia. He Is ‘Doing Well,’ but How Do I Protect Our $1.6 Million Savings Right Now?”