When a loved one begins to show signs of cognitive decline, it can become difficult to emotionally reconcile who they once were with who they are becoming. They also will need more assistance with many daily activities—this may include their ability to handle their finances. While it may seem like an uncomfortable or awkward subject to approach, loved ones of the individual in cognitive decline should help develop a financial plan as soon as possible. Below are tips that individuals should take into consideration when planning for the future with loved ones with cognitive decline.
Start the Process as Early as Possible
It is critical to begin financial planning with a person whose mental faculties are declining as soon as possible. This increases the likelihood that the person in cognitive decline can still explain their wishes and wants about their future with their family. By having these discussions, family members assisting with the process will be confident later on they are making decisions that the person would have wanted. The loved one can then express their preference about these financial decisions, including who they want to manage their finances, how to use their money to pay for their future expenses and the bounds of these expenses. A great first step is executing a durable (financial) power of attorney.