Estate Planning | Making a Difference One Family at a Time

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With Alzheimer's Looming, Incapacity Planning Is a MustAlzheimer’s disease is a major concern within the elder law community, and we see its impact every day. Someone who isn’t in a related field may not fully understand the extent of the threat, but it is very real indeed.

The Scope of Alzheimer’s Disease

The numbers illustrate the scope of the problem. According to the Alzheimer’s Association, more than six million Americans are currently living with the disease. That figure is expected to double by 2050 as the population ages.

One in three seniors dies with Alzheimer’s or another form of dementia, making it one of the leading causes of death in the United States.

The financial cost is just as staggering. In 2025, the nation will spend more than $350 billion on care related to Alzheimer’s and other dementias.

In Connecticut as a whole, the average annual cost of a private nursing home room is already above $180,000, according to the Genworth Cost of Care Survey. The combination of widespread prevalence and steep expense makes advance planning essential.

Why Incapacity Planning Cannot Wait

Alzheimer’s progresses gradually, beginning with mild forgetfulness and eventually eroding the ability to manage daily life. By the time the disease reaches advanced stages, a person may no longer be able to make financial or medical decisions.

Planning early gives you the opportunity to select trusted decision-makers and document your wishes while you still have capacity.

Without an incapacity plan, loved ones may have to go to court to seek a conservatorship. That process is public, time-consuming, and emotionally draining. By planning ahead, you keep control over who will act for you and how your affairs will be managed.

Financial Decision-Making Tools

A durable power of attorney for finances is the primary tool for protecting your financial interests if Alzheimer’s affects your capacity. This document allows an agent you name to handle banking, bill payments, investments, property management, and other financial matters.

If you do not have a durable power of attorney, even simple financial tasks may require court intervention.

By creating this document, you make it possible for someone you trust to manage your finances seamlessly and according to your preferences. Choosing the right agent is critical; integrity and financial responsibility should guide your decision.

Advance Directives for Health Care

Advance directives are legal documents that communicate your medical wishes when you cannot do so yourself. In Connecticut, the two most common are the living will and the durable power of attorney for health care.

  • Living will: This document sets out your preferences for life-sustaining treatment and other medical interventions. It tells your doctors what care you want, what care you wish to avoid, and under what circumstances.
  • Durable power of attorney for health care: Sometimes called a health care proxy, this document appoints a trusted person to make medical decisions on your behalf. It is especially important because it allows someone to respond to unforeseen situations that a living will cannot anticipate.

Together, these directives give you both a written record of your wishes and a trusted voice to speak for you.

Planning for Long-Term Care Costs

Because Alzheimer’s often leads to extended stays in assisted living or nursing homes, financial preparation is vital. Medicare does not pay for custodial care, so many people eventually turn to Medicaid.

Qualifying for Medicaid requires careful planning, because the program has strict asset and income limits as well as a five-year look-back rule on transfers.

An elder law attorney can help you explore strategies such as irrevocable income-only trusts, which may preserve a home or other property while still allowing eventual Medicaid eligibility. Planning several years in advance provides the greatest flexibility and protection.

Summing It Up

Alzheimer’s is a growing challenge that makes incapacity planning indispensable. By acting before capacity is lost, you protect your right to choose decision-makers, safeguard your financial interests, and secure the care you want.

You also ease the burden on loved ones who would otherwise face difficult choices in a time of crisis. With professional guidance, you can create a clear, effective incapacity plan that addresses the realities of Alzheimer’s and provides lasting peace of mind.

Let’s Get Started!

Now is the time for action if you are currently unprepared, and we can help you adjust your existing plan if updates are needed.

We have an estate planning office in Glastonbury, CT, and another one in Westport, and you can call us at 860-548-1000 to schedule a consultation at either location. If you would rather send us a message, simply fill out our contact form.

You may also want to consider attending one of our complimentary seminars, and you can visit our Seminar Schedule Page to get all the details.

Barry D. Horowitz, Estate Planning Attorney
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