Financial Planning With Dementia

The Chamberlain Law Firm

As an experienced New Jersey elder law attorney, I know that navigating the intricate landscape of financial planning with dementia can be daunting, especially when considering the potential challenges and costs of dementia long-term care. However, with the right legal tools and expert guidance, it’s possible to establish a robust plan that not only safeguards one’s assets but also ensures they are managed in alignment with their wishes, even in the face of incapacity. 

This article delves into the critical components of financial planning with dementia, from understanding the costs associated with dementia care to implementing instruments like powers of attorney. As we explore these topics, the significance of collaborating with an experienced elder law attorney in New Jersey becomes evident, offering peace of mind in a realm fraught with complexities.

Costs Associated With Dementia

The costs associated with dementia long-term care are multi-faceted and can quickly accumulate. Medical treatment to manage dementia symptoms may necessitate the purchase of specialized equipment or modifications to one’s home to ensure a safe living environment. Additionally, prescription medications and various personal care supplies represent ongoing expenses that must be factored into the overall financial planning.

Moreover, many individuals with dementia ultimately require long-term care services to support their daily needs. This can encompass a range of services, from adult day care and in-home care services, to full-time residency in an assisted living facility or nursing home. Each of these options carries its own cost considerations, and deciding on the most appropriate form of care will depend on a multitude of individual factors.

Paying For Dementia Long-Term Care

If you or a loved one is facing the need for long-term dementia care, you may feel overwhelmed by the potential financial burden this entails. It’s important to understand that dementia long-term care costs can vary significantly depending on your location. In New Jersey, these costs are among the highest in the nation.

Engaging with a skilled New Jersey elder law attorney is a crucial step in this process. An experienced attorney can assist you in assessing your available resources, exploring public assistance options, and devising a plan to finance long-term care tailored to your unique situation.

For some individuals, long-term care insurance might provide a valuable means of covering these costs. However, it’s important to note that if dementia symptoms have already manifested, securing this type of insurance may no longer be a feasible option.

Public assistance represents another viable avenue for mitigating long-term care expenses. In New Jersey, this assistance is provided through Medicaid Managed Long Term Services and Supports (MLTSS). By partnering with a New Jersey elder law attorney, you can utilize legal and financial strategies to apply for MLTSS benefits. Moreover, even if your assets or income exceed the thresholds for MLTSS eligibility, your attorney can employ legal mechanisms—such as a qualified income trust or an irrevocable trust — to help you qualify for necessary care.

Furthermore, your attorney can guide you in uncovering additional support options, such as veteran’s benefits or tax deductions associated with residing in an assisted living facility.

Power of Attorney

Partnering with an elder law attorney is crucial not only for navigating the costs of long-term care, but also for establishing essential financial planning tools tailored to your specific needs. One such tool is a financial power of attorney, which is fundamental in safeguarding your financial wellbeing in the event you are no longer capable of managing your own affairs. With the expertise of an attorney, this critical document will be meticulously crafted to align with your unique circumstances and preferences, ensuring that your finances are handled according to your wishes.

A power of attorney is a financial planning tool that designates a trusted individual, or agent, to make critical financial decisions on your behalf. There are three main types of financial powers of attorney: general, springing, and durable.

A general power of attorney takes effect immediately upon execution and becomes invalid if the creator of the power of attorney, known as the principal, becomes incapacitated. Conversely, a springing power of attorney only becomes effective if and when the principal is incapacitated.

However, as a seasoned New Jersey elder law attorney, I often recommend that my clients create a durable power of attorney, particularly in the realm of dementia care. A durable power of attorney becomes effective immediately upon execution and remains valid even if the principal becomes incapacitated. This immediate efficacy avoids any delays that may arise from the agent needing a medical professional’s confirmation of the principal’s incapacitation. In the complex and often unpredictable landscape of dementia, having a durable power of attorney in place can provide a vital safeguard.

Moreover, working closely with an attorney enables you to tailor your power of attorney document to suit your unique needs and circumstances. This customization can include specifying additional powers or limitations, thereby controlling the extent of your agent’s authority to ensure your affairs are managed in accordance with your wishes. Additionally, a well crafted power of attorney can allow someone with dementia to plan for long term care even in an emergency situation where they need care right away and no planning was previously done. 

While generic forms for powers of attorney are available, these may not adequately address your specific requirements. Thus, it is imperative to ensure this document is carefully crafted with the assistance of a skilled attorney.


In conclusion, dementia presents unique challenges in financial planning, with the potential for significant dementia long-term care costs and the necessity of careful asset management. By proactively employing tools such as durable powers of attorney, and with the invaluable assistance of a New Jersey elder law attorney, individuals can ensure that their financial affairs are in order, even in the face of dementia’s unpredictability. This level of preparation not only safeguards one’s assets but also provides peace of mind, knowing that their wishes will be respected and upheld, no matter what the future holds.

The Chamberlain Law Firm is here to help you with your financial planning. Give us a call today at (201) 273-9763 to set up your consultation. For more dementia planning advice, be sure to check out our library of Insight Articles.

This article is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a lawyer about the specifics of your case, contact The Chamberlain Law Firm at (201) 273-9763 to schedule a consultation.

Our Reviews See What Our Clients Are Saying

Mr. Chamberlain went above and beyond helping me figure out the next steps in planning for my elderly father’s future. One can imagine how overwhelming and confusing this...

Cheryl Berkowitz

So appreciative of the amazing services Andrew Chamberlain provided me. I needed help with a will. Andrew was very knowledgeable and answered all of my questions. He and...

Erika S

We worked with Andrew on our wills, power of attorney, and health directives. He was very responsive and the quality of what we received was excellent. It was definitely...

Evelyn Noether

Where to Find Us

381 Broadway, 2nd Floor

Westwood, NJ 07675

Pearl River
1 Blue Hill Plaza #1509

Pearl River, NY 10965

Contact Us