Financial/Legal Planning

Financial/Legal Planning

Because AD is a progressive disease that can take up to 20 years to run its full course, the costs of caring for someone with Alzheimer Disease can be substantial. Careful financial planning is essential and should begin soon after diagnosis, even if AD is at an early stage. Sound planning involves a number of steps, including consultation with one or more experts in various areas.

First, a realistic assessment of the total financial picture should be developed. To calculate what funds are currently available and will be available in the future, caregivers need to collect and study the following:

Bank statements for all bank accounts (including chequing and savings accounts)
Stocks, bonds, mutual funds and other securities certificates
Real estate deeds
Insurance policies
Registered Retirement Savings Plans and other retirement benefits information

A financial planner should ensure that this information is current and accurate.

If applicable, caregivers also need to collect current information about:

Brokerage accounts
Private disability benefits
Credit card statements
Bank mortgages
Private and work-related health insurance benefits and policies (e.g., life, home and auto insurance)
Provincial health insurance benefits (e.g., OHIP coverage in Ontario)

There are also government programs that will help pay some expenses. The appropriate federal and provincial agencies can be contacted to find out more about:

Provincial Health Insurance Plans
Old Age Security
Canada Pension Plans
Other Social Services

Next, create a list of anticipated expenses. Some may be partially covered by provincial health/government insurance plans and/or private insurance plans. Others will need to be paid from income, savings, and investments. It’s possible to get a general idea of what these items will cost by talking with professionals and peers who have experience with AD. A list of expenses may include:

Medical treatments
Prescription drugs
Over-the-counter medications
Medical appliances (e.g., wheelchairs)
Disposable supplies (e.g., adult diapers)
Home care services (e.g., visiting nurses)
Adult day care
Assisted living arrangements
Housing modifications or renovations (e.g., ramps, grab bars)
Daily living expenses (e.g., food, transportation)

Use this accumulated information about income and expenses to create a short- and long-term financial plan. To learn more, visit the Alzheimer Society of Canada website.

Don’t Forget

Some assets are easily overlooked, either because they’re obvious, such as stashed cash and valuable collectibles, or because they’re obscure, such as the safety deposit box no one knows about or the inheritance that comes due in a decade.

Important!

The economy will shift and change over the years, so make sure you account for this as you calculate the costs of care.

Getting financial advice

You do not have to do any of this planning alone. Even if you are or a family member is a bona fide financial whiz, it makes good sense to engage qualified professionals who are not emotionally involved and who have specific expertise in managing the finances of those with AD. Choose one of the following, or assemble a team of advisors you respect and trust:

A certified financial planner/consultant
A lawyer (such as an estate planning lawyer)
A bank manager
A certified tax accountant

Additional resources:

Your local, provincial or national office of the Alzheimer Society of Canada offers the following publications:

Just for You: The Future. This booklet is written especially for the person with Alzheimer Disease. It provides basic information about what you might be experiencing and offers suggestions on how to make life easier. The entire booklet is available on-line at www.alzheimer.ca
For a complete list of available publications, visit the Alzheimer Society of Canada

Other organizations that can assist with financial issues include the following:

Ministry of Community and Social Services 1-800-267-5111

Old Age Security and Canada Pension Plan 1-800-277-9914

Caregiver Network http://www.caregiver.on.ca

Canadian Tax Foundation 416-599-0283

Toronto Social Housing Connections 416-392-6111

Ontario Health Insurance Plan (OHIP) 1-800-268-1154 or 416-314-7444

Legal planning

During the earliest stage of this disease, most people with Alzheimer’s are able to make rational decisions. Because this ability diminishes significantly as AD progresses, creating valid legal documents while competency still exists should be a top priority. These legal documents authorize the caregiver or someone else to make essential decisions as follows:

A power of attorney grants someone, generally a trusted family member or a friend, the right to make decisions for the person with Alzheimer Disease. The authority granted to the attorney may be broad such as managing all financial and legal affairs, or limited to such things as handling the bank accounts of the person with Alzheimer Disease. In a number of provinces in Canada, a continuing or durable power of attorney allows the attorney to make decisions for the person with Alzheimer Disease, even after they have become mentally incapable. In British Columbia, these are known as Representation Agreements.
In several Canadian provinces, it is possible to have a power of attorney which specifically deals with medical and healthcare matters. This type of power of attorney grants someone the right to make healthcare decisions for the person with Alzheimer Disease, when they are no longer capable of making those decisions for themselves. In Ontario, these are known as Powers of Attorney for Personal Care. Whoever has such a power of attorney is able to hire and fire healthcare providers, sign consent forms and either choose or decline medical treatments.
A living will outlines what exactly the person with Alzheimer Disease does and does not want in terms of medical care, when they are not capable of making their own medical decisions. A living will can specify, for example, whether life support systems are used and in which circumstances a “do not resuscitate” (DNR) order goes into effect. At present, not all provinces in Canada recognize the validity of this type of will, so it is important to check whether your own province permits the use of living wills. In some provinces, such as Ontario, these directions may be included in a form of power of attorney governing the personal care of the person with Alzheimer Disease.
A last will and testament is a legal document that outlines the financial and other wishes of the deceased person. An executor handles all remaining legal and financial details after the person with AD dies. Anyone who receives anything from the estate is known as a beneficiary.

Don’t Wait

If you wait until the person with AD is almost totally unable to make sound decisions, you may have to hire a lawyer to gain appropriate legal control. In some situations, it may become necessary to hold a court hearing to determine whether the person with AD is legally competent. At the hearing, if the judge determines that the person with Alzheimer Disease is not competent, a legal guardian may be appointed.

Many of the same questions you would ask a prospective healthcare provider apply to the process of hiring a lawyer. In addition to finding out about availability, costs, and billing practices, you’ll want to make sure that the person you retain is experienced in the practice of Senior’s Law.

Your local, provincial and national offices of the Alzheimer Society of Canada provide information on legal and financial planning.

Other organizations that offer resources on legal planning include the following:

Office of the Public Guardian and Trustee 1-800-366-0335

Legal Line (Senior’s Law) 416-929-8400

Canadian Bar Association – National Health Law Section 1-800-267-8860

Canadian Association for Retired Persons (CARP) www.fifty-plus.net (specifically for people over 50 years old)