What is financial planning?

Financial planning is the process of setting up a plan for how to cover your financial needs while you are alive, manage your money when you are no longer able to and disperse your money after your death. Financial planning should start as early as possible so the person with dementia can be thoughtfully involved in the discussion, voice their values and legally sign any documents. In our experience, families are always grateful that they dealt with these difficult questions early on, rather than at the last minute.

Once someone is diagnosed with FTD, you will most likely need to adjust the management of their money and ensure the protection of their assets. Consider appointing a trusted person who will know where you keep important papers and have a plan for handling legal and financial matters in the event you are unable to do so.

Planning ahead means:

• Having joint signatures on all financial accounts
• Discussing future financial affairs with an adviser
• Arranging how and when the person with FTD will access their finances
• Making a financial power of attorney
• Naming beneficiaries on all banking, investment and retirement accounts
• Arranging for payment of long-term health care: use of private insurance, Medicare, Medicaid (Medi-Cal in California) and Supplemental Security Income (SSI) when applicable
• Preserving the family assets: ensuring that the patient’s spouse and any disabled family members are adequately protected
• The distribution of the person’s assets on his or her death. (If the person has a disabled spouse, child or other family member that they wish to provide for, special arrangements need to be made.)

If a bank account is held jointly, the joint owner can continue to manage the account without any change in arrangements. However, the person with FTD still has equal access to the account as well, and this can create problems if they use the account inappropriately. To avoid these difficulties the person with FTD can give authority, while legally competent, to another person to operate the account. It is important to remember that this authority will become invalid if the person is no longer legally competent. If they are unwilling to agree to a change of arrangement it may be helpful to consult a financial planner or bank representative about a possible solution.