Advance directives for financial planning are documents that communicate the financial wishes of a person. It’s important to create these documents while a person with dementia still has the legal capacity to make decisions. Three common documents included in a financial directive are:
- Will: Specifies how a person’s estate — property, money, and other financial assets — will be distributed and managed when they die.
- Durable power of attorney for finances: Names someone who will make financial decisions for the person when they are no longer able to.
- Living trust: Names and instructs someone, called a trustee, to hold and distribute property and funds on behalf of the person when they can no longer manage their affairs on their own.
Read more about financial planning for a person with dementia.