If you’ve been close with someone who has suffered from dementia, you likely understand how devastating the disease can be.
The Guardian reports that dementia is now the biggest cause of death in the UK. And the Alzheimer’s Society estimates that there are currently 982,000 people with dementia in the country, and the number is expected to rise to 1.4 million by 2040.
Dementia can turn even the simplest tasks into overwhelming challenges. In the early stages of the disease, individuals may be reluctant to ask for help, often trying to maintain their independence.
While it’s important to ensure their wishes are respected, offering gentle support and assistance can make a significant difference. Small acts of kindness and attention can go a long way in easing their daily challenges and providing comfort.
So, read on to discover five ways you can help someone with dementia look after their finances.
1. Help them manage their regular expenses
There are everyday expenses that someone with dementia may struggle to manage independently, which someone with full mental capacity could easily handle.
For instance, you could arrange a weekly grocery delivery with a direct debit, ensuring their essentials are delivered on time, eliminating the need for them to remember what they need to buy or how they get to the shop.
Similarly, you could help manage their subscriptions and household bills by setting up standing orders or direct debits for payments like their TV licence or utility bills. You may also find they have existing payments and subscriptions they no longer use or need.
It can also be a good idea to notify their bank of their condition to explore alternative authorisation methods, such as a chip and signature card, which can be very useful for people who can’t remember their PIN.
In addition, you may want to set up a third-party mandate, allowing you to manage everyday transactions on their behalf, or consider opening a joint bank account to give you both access to their finances.
These actions may seem small, but they can significantly improve the day-to-day life of someone with dementia, potentially saving them both time and money.
2. Encourage them to register a Lasting Power of Attorney
A Lasting Power of Attorney (LPA) is a legal document that designates one or more individuals to make decisions on behalf of someone who can no longer make informed choices due to a loss of mental capacity.
People with dementia will likely reach a stage where they can no longer make decisions on their own, and an LPA is crucial for ensuring their affairs are managed properly when they are no longer able to do so.
There are two forms of LPA:
- Health and welfare – this form allows you to make decisions about the care and treatment of the individual you act on behalf of. A health and welfare LPA can only be used when the individual has lost their mental capacity.
- Property and financial affairs – this form allows you to manage and make decisions regarding the individual’s bank accounts, bill payments, benefits, pension, and property. A property and financial affairs LPA can be used before the individual has lost their mental capacity.
It is important to remember that an LPA can only be registered while the individual you will act on behalf of still has mental capacity.
So, it can be a good idea to encourage someone in the early stages of dementia to register an LPA before they are no longer legally permitted to do so.
3. Help them to claim their benefits
People with dementia may be eligible for certain benefits but might struggle to understand which ones they qualify for or how to apply. Offering help navigating the application process can make a significant difference, ensuring they receive the financial support they need and are entitled to.
If they require care or assistance at home, they may be eligible for:
- Attendance Allowance – available to those over State Pension Age who need help at home, regardless of their income or savings.
- Personal Independence Payment (PIP) – designed for those under State Pension Age who need help at home, also not affected by their income or savings.
- Other entitlements – those in receipt of Attendance Allowance may also be entitled to other benefits, such as Pension Credit, Housing Benefit, or Council Tax Reduction, though these will depend on their income and savings.
Additionally, if you provide regular care for someone with dementia, you may be able to claim either the Carer’s Allowance or Carer’s Credit. Your eligibility depends on how much time you dedicate to their care.
4. Explore how they might afford care fees
If you are assisting someone with dementia, it’s important to explore various options for covering their care fees, both in the present and for the future.
This may involve:
- Assessing their pension – review their pension plans to determine potential withdrawals or benefits that can be utilised to fund their care.
- Evaluating their saleable assets – make an inventory of any assets that can be sold to generate funds for care expenses, such as cars or properties.
- Understanding their investment income – review any investment portfolios or accounts to identify income streams that can contribute to their care costs.
Care fees can be significant, and helping someone with dementia manage these costs efficiently can be beneficial for ensuring they get the standard of care they need.
5. Speak to a financial planner
A financial planner can work alongside you to ensure that the person with dementia you are caring for receives the best possible support.
They can assist you in managing the finances entrusted to you, and identify ways to maximise existing funds and benefits to help cover care costs.
Additionally, a financial planner can help you develop a strategy that safeguards your own financial wellbeing, ensuring that your responsibilities as a caregiver do not adversely affect your personal financial plan.
To speak to a financial planner, get in touch.
Email us at hello@vwmwealth.com or call us on 0141 229 4004.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.
