Early Planning

  • Ways to plan ahead,

  • How to organise financial and legal affairs

  • People or organisations who can help

Dementia affects every person differently. One person loses the ability to handle money or make business decisions at an early stage, while another keeps these skills much longer.

However, sooner or later their abilities will decline and the person with dementia will need a great deal of support to manage financial and legal matters.

Planning ahead

Planning ahead can make it easier for families and carers to manage the affairs of a person with dementia. It also means that the person with dementia can participate in planning and make sure their wishes are known and carried out in the way that they would like.

Wherever possible, get matters sorted out while the person with dementia can still participate in the discussion and is legally competent to sign the necessary documents.

Money matters

If a bank account is in joint names, the partner of the person with dementia can continue to operate it without any change in arrangements. However problems occur if the person with dementia uses the account inappropriately or has accounts in their name only. To avoid these difficulties the person with dementia can give authority, while legally competent, for another person to operate the account. Remember that this authority will be invalid if the person is no longer legally competent. If s/he is does not agree to a change of arrangement, consult the bank manager about a possible solution.

Planning ahead means:

  • Having joint signatures on all financial accounts

  • Discussing future financial affairs with a financial adviser

  • Arranging how and when the person with dementia will access their finances

Who can help?

  • Bank manager

  • Accredited financial adviser

  • Solicitor

  • Local Dementia NZ branch

Enduring Power of Attorney

An enduring power of attorney (EPOA) is a legal arrangement that enables a nominated person (the attorney) to look after the affairs of another person should they become unable to do so. It is sensible for all ageing people to appoint an attorney regardless of whether they have a dementia diagnosis or not.

An attorney may be appointed for property or welfare. The property attorney manages the financial affairs for the person once they lack capacity (as determined by a doctor). The welfare attorney makes decisions about such things as where the person might live or what medical treatment they receive when they cannot do this themselves. Even though the person may lack capacity, the attorney must involve them as much as possible in decision-making and always try to do what they think the person with dementia would have wanted, not what the attorney thinks is best for them.

Planning ahead means:

Ensuring that the person with dementia has the opportunity to appoint an enduring power of attorney (if they don’t already have one) as soon as possible after diagnosis while they have the capacity to do so

Families and carers also have their own enduring powers of attorney so that their affairs can be managed in case they also become incapable

Having a copy of the enduring power of attorney document, and knowing where it is kept

Who can help?

  • Solicitor

  • Citizen’s Advice Bureau

  • The Public Trust

  • Dementia NZ local branch

What if the person already lacks capacity?

If the person is no longer competent i.e. lacks capacity to make decisions and has not appointed an EPOA, then an application can be made to the family Court for the appointment of a Welfare Guardian and /or a Property Manager under the Protection of Personal and Property Rights (PPPR) Act to manage their affairs. Going through the Court is an expensive and stressful process, so it is much better if an EPOA has been appointed earlier.

Who can help?

  • Solicitor

  • Family doctor (to determine competence/capacity)

  • The Public Trust

  • Dementia NZ local branch

Wills

A will gives instructions as to how the estate of a deceased person should be distributed. A will is only legal if the person understands its implications, so it is essential that if the person with dementia wishes to make, or update their will, they other legal documents, there is no “presumption of competence” when someone is changing their will; the person making the change has to prove that they have the capacity to do so.

Planning ahead means:

  • Having an up-to-date will

  • Knowing who the executor is, and where the will is kept

Who can help?

  • Solicitor

  • The Law Society or Institute, or Legal Aid

  • The Public Trust

  • Dementia NZ local branch

Advance Care Planning

An advance directive is a written document expressing the wishes of the person with dementia about medical treatment, particularly towards the end of life. While this is not legally binding, it is taken into serious consideration when making decisions for the person who is unable to communicate.

Planning ahead means:

  • Discussing and/ or writing an advance care plan

  • Having a copy of the document, and knowing where it is kept

Who can help?

  • Solicitor

  • Advance Care Planning
    www.advancecareplanning.org.nz

  • Citizens’ Advice Bureau

  • Dementia NZ local branch