On 21st September it is world Alzheimer's Day, and this year’s theme is, the earlier you know, the more you can do: a dementia diagnosis matters. This has been chosen to highlight the importance of addressing the disease head on with learning and identifying the right support as early as possible.

Being diagnosed with Alzheimer's can lead to many questions about the future. What support might be needed? Who will help with finances? Who will make important decisions if managing things independently becomes more difficult?

One way of planning for the future is to make a Lasting Power of Attorney (LPA).

For someone living with Alzheimer's, making an LPA while they have the mental capacity means the people they trust can support them further down the line if they lose capacity.

While it can be possible to make an LPA after an Alzheimer’s diagnosis, this is not always the case. For this reason, planning ahead and putting an LPA in place before it becomes necessary is often the best way to protect your future wishes.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document that lets you appoint one or more people to make decisions on your behalf.

There are two types of LPA:

• Property and financial affairs LPA, covering decisions about money and property.
• Health and welfare LPA, covering decisions about care, medical treatment and other aspects of your personal welfare.

Someone can choose to make one or both types.

Why is an LPA important for someone with Alzheimer's?

The most important point is that the person making the LPA chooses their attorneys.

An attorney could be a spouse, partner, adult child, sibling, friend or another person they trust. The donor can also appoint more than one attorney and include preferences or instructions about how they would like their attorneys to act.

This can be particularly important following an Alzheimer's diagnosis because the condition can progress over time.

Making an LPA early gives someone the opportunity to think about who they trust and what they would want to happen in the future, rather than leaving those decisions to be dealt with later.

What can a property and financial affairs attorney do?

Depending on the terms of the LPA, a property and financial affairs attorney may be able to help with things such as:

• managing bank and savings accounts
• paying household and care bills
• managing pensions and benefits
• dealing with tax
• managing investments
• buying or selling property
• maintaining the person's home.

Attorneys must act in the donor's best interests and follow the instructions and restrictions in the LPA.

What about a health and welfare LPA?

A health and welfare LPA can cover decisions such as where someone lives, their day-to-day care and certain medical decisions.

Unlike a property and financial affairs LPA, a health and welfare LPA can only be used when the person has lost the capacity to make the relevant decision themselves.

This can allow someone to have a trusted person involved in important decisions about their care and welfare if they are no longer able to make those decisions themselves.

What happens if there is no LPA?

If someone loses the capacity to make financial decisions and has not made an LPA, their family cannot simply step in and take over their finances.

Depending on the circumstances, an application to the Court of Protection may be necessary for someone to become a property and financial affairs deputy.

This can take longer and involves a formal court process. The person does not get to choose their deputy in the same way that they can choose their attorneys when making an LPA.

This is why an LPA can be an important part of planning after an Alzheimer's diagnosis.

Can my spouse manage my affairs if I have Alzheimer's?

If you have lost capacity and don’t have a Lasting Power of Attorney your spouse doesn’t automatically have authority to manage your affairs. Being married doesn’t give you access to anything your spouse held in their own name such as individual bank accounts, insurance policies etc. In the case of other jointly held accounts organisations can put restrictions on the account if one person loses capacity.  For example, if you needed to release equity from your home to pay for your spouse’s care the equity release provider would require you both to agree to the transaction.

Does an Alzheimer's diagnosis mean someone cannot make an LPA?

No. A diagnosis of Alzheimer's does not automatically mean that someone lacks mental capacity.

Capacity relates to the specific decision the person needs to make and their ability to understand it, retain and weigh the relevant information and then communicate their decision. Someone with Alzheimer's may still be able to make an LPA if they have the necessary capacity to do so. This is why it can be helpful to consider an LPA sooner rather than later. In some cases a medical report may need to be done on their capacity in order to finalise a will or LPA but your solicitor will always tell you if this is the case.

The importance of making your wishes known

An LPA is ultimately about giving someone a say in who can help them in the future.

It does not mean that someone immediately loses control over their own affairs. For example, a property and financial affairs LPA can be set up so that attorneys only act when the donor no longer has the capacity to make the relevant decisions.

For families dealing with an Alzheimer's diagnosis, having these conversations early can provide reassurance and reduce the risk of difficult legal and financial arrangements having to be dealt with at a later stage.

How can Switalskis help?

Our specialist Wills and probate teams can help you understand the different options available and whether an LPA could be appropriate for you or someone you care about.

If you or a loved one has recently received an Alzheimer's diagnosis, getting advice early can help you understand the choices available and put appropriate plans in place.

Speak to Switalskis about making a Lasting Power of Attorney.