Dementia‑proofing your money: why early planning matters

Taking steps to plan your finances early is one of the kindest things you can do for yourself and those you care about. A well‑structured estate plan not only protects your money, but also preserves your independence and gives clarity to the people who may one day need to support you. Putting plans in place while you have full mental capacity means your wishes are clear, respected, and easy to follow.

Dementia can affect memory, daily decision‑making, and the ability to manage routine financial tasks. Without the right legal arrangements, families may face delays, complicated court applications, and unnecessary stress at a time when stability and reassurance are vital. The steps below create a strong foundation for safeguarding your affairs.

Preparing a Lasting Power of Attorney (LPA)

An LPA lets you choose trusted individuals, or a professional team, to make decisions on your behalf if you ever lose capacity. It is one of the most important documents you can put in place.

When can someone with dementia make an LPA?

A dementia diagnosis does not automatically prevent someone from making an LPA. You can make one at any stage of your diagnosis, as long as you still understand:

• what an LPA is,
• who you are choosing to act for you, and
• the authority you are giving them.

Capacity is decision‑specific, not diagnosis‑specific. This is why acting early, soon after diagnosis, is so important.

Why LPAs matter

With an LPA in place, your attorneys can:

• Manage your bank accounts, property, bills, and investments
• Make decisions about your care, living arrangements, and medical treatment (with a Health & Welfare LPA)

Without an LPA, your family would need to apply to the Court of Protection for a deputyship order, which is often a lengthy, costly, and intrusive process.

Simplifying your financial arrangements

As cognitive abilities change, complex financial setups can quickly become overwhelming. Simplifying things now makes life easier for your future self and for anyone who may need to step in later. Consider:

• Consolidating multiple accounts into one or two main ones
• Closing unused or dormant accounts
• Keeping clear, accessible records for your attorneys
• Reviewing any joint accounts and understanding what happens to them if one person loses capacity

A little organisation now can prevent a lot of confusion later.

Seeking support from professionals

Many people choose to appoint a professional attorney or involve a law firm alongside family. This can be especially helpful when:

• Suitable family members aren’t available
• Family relationships are complicated
• The estate is substantial or includes business interests
• Independence and continuity are important

A specialist private client team can:

• Act as your attorney
• Support your chosen attorneys with advice and compliance
• Handle investment management, property sales, tax issues, and care funding
• Provide safeguarding and oversight for vulnerable clients

Professional attorneys offer experience, impartiality, and regulated protection, giving you peace of mind that your affairs will be managed with care, sensitivity, and expertise.