Estate Planning After an Alzheimer's or Dementia Diagnosis

An Alzheimer’s or dementia diagnosis first brings concern, sadness, and perhaps panic to any household. But after that comes a wave of uncertainty. How can the individual who has been diagnosed prepare for what lies ahead? While there’s no way to predict exactly how the condition will progress, there are steps you can take now to maintain control over your legal and financial life. The early stages of diagnosis are often the best time to make decisions, communicate your wishes, and protect your future.

At Bespoke Estate Law, our estate planning attorneys work closely with individuals and families in North and South Carolina who want to take meaningful action after a life-changing diagnosis. If you or someone you love is facing the early stages of memory loss, now is the time to act.

The Importance of Planning Early After a Dementia Diagnosis

What Happens If You Wait Too Long?

You must have legal capacity to sign estate planning documents; therefore, take the time to understand what each legal document does and how it affects your property, rights, or care. In both North Carolina and South Carolina, someone with early-stage dementia may still meet that standard. Delaying too long can lead to complicated court proceedings, unnecessary stress for your family, and decisions being made by someone you didn’t choose.

Avoid Court-Appointed Guardianship Through Early Action

If no valid documents exist and you lose the ability to manage your own affairs, your family may need to go through a guardianship or conservatorship process in court. In both North Carolina and South Carolina, a spouse is not automatically given authority over your finances or medical care. For financial matters, a spouse may need to petition the court for conservatorship or guardianship of the estate, especially if the accounts or property are held solely in your name. The court will consider the spouse, but there is no guarantee they will be chosen. Other relatives or even a professional guardian may be appointed if there is disagreement or concern about suitability.

Health care decisions follow a legal hierarchy. State law in both North Carolina and South Carolina outlines who can step in when no health care power of attorney is in place. A spouse typically ranks high on the list, but they must still meet legal criteria, and other relatives may challenge their authority. In some cases, the court may need to intervene if there is conflict or confusion.

Speak to a lawyer with power of attorney experience, and create your own plan in advance, you retain the right to name the individuals you trust most. You can avoid family disputes and spare your loved ones from going through a court process during an already difficult time.

What Estate Planning Documents Do I Need After a Dementia Diagnosis?

Creating a Revocable Living Trust

A revocable living trust allows you to maintain control over your assets for as long as you’re able, while also naming someone to step in later if needed. This structure avoids probate, keeps your affairs private, and simplifies the transition of control if your condition progresses. Homes, financial accounts, and other property can be transferred into the trust to ensure seamless management. You remain in charge while you are able, and your chosen successor takes over only when it becomes necessary. That transition can happen quietly and without court involvement. It can also provide instructions for how funds should be used to support you. Unlike a will, a trust is private and avoids probate.

Do I Still Need a Power of Attorney?

Yes. Certain assets, like IRAs or Social Security benefits, cannot be placed in a trust. For those, a durable financial power of attorney is essential. This document allows a trusted person legal authority to handle tasks like paying bills, managing investments, or filing taxes. Without it, your family may be locked out of important accounts during a crisis.

Who Will Make Medical Decisions If I Can’t?

You should also name someone to make health care decisions if you become unable to speak for yourself. That’s done through a health care power of attorney. You can choose a friend, relative, or partner (anyone you trust to make medical choices that align with your values).

In addition, a living will, or advance directive lets you explain what kind of care you want in difficult situations. This includes decisions about life support and comfort measures. These documents bring peace of mind to families who would otherwise be left guessing.

What Else Should I Review or Update After a Diagnosis?

Reviewing Beneficiary Designations and Account Transfers

Some accounts, like retirement funds or insurance policies, pass automatically to the person listed as beneficiary. Those designations can override your will or trust. After a diagnosis, take time to review each one and confirm that they reflect your wishes. Small oversights can create big problems if not caught early.

What Should I Do With My House or Other Property?

If you own real estate, it’s worth considering how that property will be managed in the future. Placing it into a trust can simplify management and allow a successor trustee to step in without court action. You may also want to explore life estate deeds or other forms of ownership, depending on your goals and family structure.

Preparing for Long-Term Care Costs and Medicaid Rules

Care costs can rise quickly as memory loss progresses. Some people qualify for Medicaid benefits to help with assisted living or skilled nursing care, but eligibility comes with rules. In both states, transfers made within five years of applying for Medicaid may cause a penalty. By planning ahead, you may be able to preserve certain assets and still access support.

Talk With an Estate Planning Attorney Who Understands Alzheimer’s and Dementia Planning

You don’t have to face what comes next without a plan. Whether you’re thinking about your home, your health care, or how to reduce stress for your family, we can help you take practical, thoughtful steps forward.

At Bespoke Estate Law, we support clients in Myrtle Beach, Wilmington, Garden City, and surrounding communities. We can help you review your current documents or build an entire estate planning checklist that reflects your needs and protects your choices.

Call us today to schedule a private consultation. We’ll walk you through your options, explain the next steps, and help you take control of the future.