Living with dementia can have a profound impact on an individual’s ability to perform everyday tasks, including spelling and writing legibly. In a heartfelt letter to financial columnist Quentin Fottrell, one individual shares their concerns about their deteriorating condition and its potential implications for their wife’s financial well-being.
The writer reveals that they were diagnosed with brain damage and dementia, which suddenly affected their spelling and handwriting abilities. As their condition worsens, they express a desire to protect their wife of 24 years and secure their finances. The writer mentions that they both have long-term care insurance policies, with one paid off and the other having positive riders and a 5% inflation adjustment.
The main concern raised by the writer is whether they will be forced to sell their house to pay for Medicaid if they exhaust their long-term care policies, valued at $600,000. They fear that their wife may lose everything in the process. To address these concerns, the writer asks if consulting an elder-law attorney would be helpful, despite hearing mixed reviews and concerns about the associated costs.
In response to the writer’s concerns, Fottrell provides valuable advice and guidance. He emphasizes the importance of seeking support from professionals in various fields, including financial, legal, medical, social, and emotional support. Fottrell advises the writer to reassess their financial goals, debts, savings, insurance, income, and expenses. He mentions that there are government programs that can provide assistance and suggests exploring the possibility of withdrawing money from their IRA without penalties.
Fottrell explains that dementia is not a disease itself but rather a symptom of over 100 different diseases. He mentions that Alzheimer’s disease is the most common form of dementia and highlights other forms such as frontotemporal degeneration (FTD), which has gained public awareness due to public figures like Wendy Williams and Bruce Willis being diagnosed with it. Aphasia, the inability to process words and communicate effectively, is noted as a common symptom of dementia.
To navigate the challenges ahead, Fottrell suggests several actions. These include updating wills, creating a financial power of attorney, and establishing an advanced healthcare directive. He advises against using DIY versions, as these matters are complex and require professional assistance. Fottrell also recommends reassessing investment portfolios based on the new financial plan and risk tolerance.
Regarding long-term care insurance, Fottrell commends the writer for investing early and mentions that their policies will help alleviate the financial burden that lies ahead. Nursing-home care costs can vary significantly, reaching up to $125,000 per year. Consulting an elder-law attorney and financial planner can help develop a comprehensive plan by assessing assets, income, expenses, and projected long-term care costs.
Fottrell suggests considering the creation of a trust to protect assets and divesting some assets to navigate the five-year Medicaid look-back period. However, he advises seeking professional guidance to make informed decisions. While selling valuable assets like a home should be a last resort, there are exceptions to the five-year look-back rule for Medicaid eligibility, such as paying off debts or making home improvements for accessibility.
In conclusion, Fottrell wishes the writer and their wife the best on their journey. He encourages them to reach out with any financial and ethical questions while acknowledging that he may not be able to reply individually. The article serves as a reminder of the importance of planning ahead for the financial and emotional challenges associated with dementia, while also emphasizing the need for professional support and guidance.
