How to manage finances for a parent with dementia 

People who are living with dementia may have previously managed their own or their family’s finances. As the illness progresses, they may need extra support to help them.  

Lasting Power of Attorney (LPA) 

It is a good idea to set up an LPA for Financial and property affairs whilst your parents are still able to make their own decisions. They should choose someone or more than one person that they trust to act as their attorney. This person would act on their behalf and in their best interests when they can no longer make their own decisions.  

Once registered, the LPA can be used with financial institutions, such as banks or utility providers, to manage your parent’s accounts and finances. 

Making budgeting and managing money easier  

On a day-to-day practical basis, there are some steps you can take to make managing their finances easier: 

• Set up standing orders or direct debits for regular bills and subscriptions to make sure they are paid on time 
• Have all income, such as pensions or benefits, paid into one bank or building society account 
• Consider getting a chip and signature card – they would not need to remember a PIN each time they needed to shop 
• Consider setting up a joint account to assist in accessing funds to support your parent  
• You can buy a range of GPS based ‘tags’ which can be attached to wallets or keys to assist in locating these should they be misplaced. Some will emit a noise if in the same building, just out of sight. Others can pinpoint a location where they may have been inadvertently left behind.  

Claiming benefits / allowances 

There are a range of benefits available for those living with dementia and for those caring for them. 

• Attendance Allowance – this is a non means tested benefit for those over state pension age who need help at home 
• Personal independence Payment – PIP – for those under state pension age 
• Carer’s Allowance – the main state benefit for people who look after someone for more than 35 hours a week 
• Council Tax Reductions – many councils offer a reduced rate of council tax where there is a member of the household suffering from a Severe Mental Impediment, including dementia. Check with your local authority for their qualifying rules. This could reduce Council Tax payments by 25% or more.  

Other areas of support 

Following a dementia diagnosis you should have a care plan for your parent. This should set out what sort of care your parent, and those who care for them, might needs. This is not the same as a ‘Needs Assessment’.  

A Needs Assessment reviews what additional assistance may be required for personal care, meals provided or a personal and is the first step before a financial assessment to see how much the NHS would contribute to care, and how much would be self-funded.  

Locally, the Dementia Hub based at the Beehive Café in Ferring, provides a range of support groups and activities. And Carer’s Support Sussex offer further information and practical support.  

Here at Carpenter Box Financial Advisers, our Later Life service can be fully tailored to meet your / your family’s needs. The services we offer include: 

• Research into the cost of a Care Annuity – a type of insurance policy which provides a regular, guaranteed income for life to pay for care costs in exchange for an upfront lump sum.  
• The ‘Trusted Assistant Service’ is a comprehensive service for various financial and personal needs. It includes: contacting and organizing local tradespeople, offering banking and finance support, assisting with form filling (e.g., Attendance Allowance applications), organizing filing, safely destroying personal documents, and coordinating house clearances. Carpenter Box Financial Advisers are not responsible for the work of any third-party contractors; this is solely an introductory service.
• Wider financial planning – we can explore ways in which you may be able to mitigate Inheritance Tax, look at trust & estate planning, investment and inter-generational wealth planning and retirement and pension advice. 

Carpenter Box Financial Advisers offer an initial meeting at no cost with no obligation to take up our services.  After the meeting, should you wish to proceed, the following would apply:      

Cost of a Care Annuity – we will provide research in relation to the cost of a care annuity.  An indicative illustration is obtained in the first instance, should this be deemed a viable option, underwritten quotations will be provided together with a comparison of the features and benefits available with a personalised analysis of your position and ‘next steps’.    

The cost for this service is a single, fixed fee of £750 for the research only (indicative illustration) with further costs applicable should you wish to proceed to a full recommendation and application (underwritten quotations).  Please note, any further costs would be outlined prior to any work commencing with the £750 discounted from the full fee once our advice has been issued.    

Trusted Assistant Service – we offer an all-round service for those who may benefit from additional support with their wider finances and/or personal needs from a trusted and reputable firm.  Our dedicated team can help with tasks such as the completion of forms (Attendance Allowance), help arrange appointments with local tradespeople, offer banking/finance support together with help in navigating the wider benefits/care system.    

This is a non-contractual service at a fixed rate per hour.  Appointments can be held at our offices or virtually depending upon your individual circumstances.  

If you would like to discuss later-life planning further, please don’t hesitate to contact us on 01903 534587