Alzheimer’s and Dementia Planning Support for Michigan Families

Managing Assets and Making Key Medical Decisions

At some point, a person living with Alzheimer’s or dementia will no longer be able to manage their finances or make important medical decisions. That’s why it’s essential to plan ahead—so their wishes are clearly documented and the right people are legally empowered to act on their behalf when the time comes.

There are three main ways to give a spouse, adult child, or another trusted family member the authority to make decisions for someone with Alzheimer’s or dementia:

• Patient Advocate Designation. Creating a patient advocate designation allows you to choose the person you trust most to make important health care decisions for you if you can’t speak for yourself. This includes decisions about doctors, hospitals, treatments, medications, and other essential care. By naming a patient advocate in advance, you make sure your wishes are known and followed—and you give your loved ones the comfort of knowing they’re acting with your guidance.
• Durable power of attorney. Sometimes called a financial power of attorney or general power of attorney, a durable power of attorney lets you choose a trusted person to handle financial matters on your behalf. This can include paying bills, managing bank accounts, handling investments, or taking care of other money-related tasks if you’re unable to do so yourself. Putting this in place ensures that someone you trust—not the courts—will be managing your finances if the unexpected happens.
• Adult guardianship or conservatorship. If someone hasn’t named a patient advocate for health care or created a power of attorney for finances—and they become unable to manage their own affairs—the family may have no choice but to go through the probate court to get a guardianship (for medical and placement decisions) or conservatorship (for handling money). This process can be time-consuming, costly, and emotionally difficult, especially during an already stressful time. Putting the right planning in place now ensures that the people you choose—not the court—will have the authority to act on your behalf if it’s ever needed.

Role of Trusts: If a person with Alzheimer’s or dementia already has a trust designed to avoid probate, that trust will often include instructions for managing assets if the individual experiences cognitive decline. A well-prepared trust can make the transition much smoother—clearly outlining who will take over management responsibilities and how the assets should be handled. Having this plan in place greatly reduces the chance that your family will need to go through probate court, saving time, stress, and expense while keeping matters private.