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 Financial 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. The goal is to have the ability to take control, and doing so requires a Financial Power of Attorney, so the healthy spouse can manage the couple's bank accounts and other assets, regardless of who is the titled owner on the accounts.

For accounts and real estate, this is the time to check all property to find out whose name is on the account or the title. 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 Durable Healthcare Power of Attorney needs to be in place. If one was created previously, it should be reviewed and possibly updated. All Powers of Attorney need to be reviewed to ensure they grant the healthy spouse complete control and don’t require him or her to go to court to prove the spouse'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 declining 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, Powers of Attorney, Advance Directives/Living Wills, 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 elder law 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.

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?”