A dementia diagnosis is life-changing—not just for the person affected, but also for their family and loved ones. Alongside the emotional impact, there are practical matters to address. One of the most urgent steps is to get financial and legal plans in place as early as possible.

At Homecare Gurus, we’ve seen firsthand how early planning can reduce stress, protect assets, and ensure that the person living with dementia receives the care they deserve in line with their wishes. Here’s a guide to help you through the process.

1. Start the Conversation Early

The best time to make important financial and legal decisions is while the person with dementia can still participate. It can be an emotional discussion, but involving them in the decision-making helps ensure their voice is heard and respected.

Encourage open, honest dialogue with family members and trusted advisors. This will help everyone feel informed and reduce confusion later on.

2. Put Legal Documents in Place

Certain legal documents will give clarity and authority to those managing the person’s affairs. In the UK, these commonly include:

• Lasting Power of Attorney (LPA) – Allows a chosen person (or people) to make decisions on behalf of the individual if they lose mental capacity.

  • Property and Financial Affairs LPA: Manages money, bills, property, and investments.

  • Health and Welfare LPA: Makes decisions about medical care, living arrangements, and daily needs.

• Will and Estate Planning – Ensures that the person’s wishes are carried out after they pass away, avoiding potential disputes.

• Advance Decision (Living Will) – Documents preferences for future medical treatment, including end-of-life care.

Tip: Seek advice from a solicitor experienced in elder law or dementia-related planning to ensure everything is set up correctly.

3. Review Financial Arrangements

It’s important to have a clear picture of income, savings, investments, and ongoing expenses. This might involve:

• Listing all bank accounts, pensions, insurance policies, and debts.

• Setting up joint accounts or authorised access to manage bills.

• Reviewing pension arrangements and benefits entitlements.

• Considering how care costs will be funded, whether at home or in a care facility.

Many families find it helpful to work with a financial advisor who understands care funding and can guide them on sustainable long-term planning.

4. Explore Benefits and Support

A dementia diagnosis may open the door to certain benefits and allowances, including:

• Attendance Allowance – For people over State Pension age who need help with personal care.

• Carer’s Allowance – For those providing substantial care.

• Council Funding for Care – Depending on financial assessment results.

Understanding what’s available can make a significant difference in covering care expenses.

5. Keep Records and Stay Organised

Once plans are in place, store all documents in a safe but accessible location. Keep copies with key family members or legal representatives. It’s also a good idea to maintain a simple record of decisions made, contact details for professionals, and any relevant passwords or account details (stored securely).

6. Seek Professional Guidance and Emotional Support

Navigating the legal and financial side of dementia can feel overwhelming. You don’t have to do it alone. Solicitors, financial planners, and dementia support organisations can all provide guidance.

At the same time, remember that this is a deeply emotional journey. Carers and family members should seek emotional support through groups, counselling, or respite care services.

A dementia diagnosis can bring uncertainty, but getting financial and legal matters in order provides stability and peace of mind. It allows families to focus on what matters most—quality time, dignity, and compassionate care.

At Homecare Gurus, we can connect you with trusted legal and financial experts while ensuring your loved one receives personalised, respectful care every step of the way.