Watching a loved one decline due to dementia is emotionally difficult. On top of that, families often face urgent legal and financial decisions when the person can no longer manage their own affairs. Whether it’s paying bills, making healthcare choices, or protecting assets, someone needs the legal authority to step in. That’s where understanding dementia legal options becomes critical.

This guide breaks down the legal tools available to families and explains when and how to use them, especially power of attorney and guardianship. Each option serves a different purpose, and choosing the right one can save time, money, and stress.

When Legal Authority Becomes Necessary

Dementia, especially in conditions like Alzheimer’s disease, is progressive. In the early stages, individuals may still be capable of making decisions. But as the disease advances, they may lose the capacity to understand, reason, or communicate effectively. This creates a legal gray area: without proper planning, no one—not even a spouse or adult child—has the automatic right to make decisions on their behalf.

That’s why it’s so important to establish legal authority before the person loses capacity completely. If that opportunity has already passed, families may need to pursue court involvement.

Option 1: Power of Attorney (POA)

Power of Attorney is a legal document where one person (the “principal”) grants someone else (the “agent” or “attorney-in-fact”) the authority to act on their behalf. There are two main types that matter for dementia patients:

1. Durable Power of Attorney for Finances

This allows the agent to manage financial tasks like paying bills, managing investments, filing taxes, or handling real estate. The word “durable” means it stays valid even after the person becomes incapacitated — making it essential for dementia planning.

2. Medical Power of Attorney (Health Care Proxy)

This document authorizes someone to make healthcare decisions if the person can’t do so themselves. It can include things like choosing doctors, approving treatments, or making end-of-life decisions.

When to use POA:
Power of Attorney is only valid if the person signs it while they still have mental capacity. If your loved one has early-stage dementia and understands what they’re signing, now is the time to create one.

Why it matters:
Without a valid POA, no one can legally manage finances or medical care unless a court grants them the authority. That leads us to the next option.

Option 2: Guardianship (or Conservatorship)

If dementia has progressed to the point where the individual can no longer understand legal documents, guardianship may be necessary.

Guardianship is a court process where someone is appointed to make decisions for a person who is legally incapacitated. Some states use the term “conservatorship” for financial matters, but the idea is the same: the court steps in to protect someone who can’t protect themselves.

Types of Guardianship:

• Guardian of the Person – Makes personal and medical decisions.
  
  
• Guardian of the Estate (or Conservator) – Manages money and property.
  
  

When is guardianship required?
If there is no Power of Attorney in place and your loved one can no longer make decisions or safely care for themselves, guardianship is the only way to gain legal authority.

What does the process involve?

• Filing a petition in probate court
  
  
• Providing medical evidence of incapacity
  
  
• Attending a court hearing
  
  
• Ongoing reporting to the court once guardianship is granted
  
  

Pros and Cons:

• Gives full legal authority to manage affairs
  
  
• Offers court oversight and legal protection
  
  
• Time-consuming and can be expensive
  
  
• Requires annual accounting and supervision by the court
  
  

Supporting Documents That Help

In addition to POA or guardianship, several other legal documents can help ensure smoother decision-making:

• Advance Directive (Living Will): States the person’s wishes about life-sustaining treatments if they become unable to express them.
  
  
• HIPAA Release: Allows healthcare providers to share medical information with designated family members.
  
  
• Will and/or Trust: Ensures their assets are distributed according to their wishes and can help avoid probate.
  
  

What If There’s Conflict in the Family?

Unfortunately, legal disagreements sometimes arise between siblings or other family members. One may want to pursue guardianship, while another may object. Or there may be suspicion of financial abuse or neglect.

In those cases, courts will often appoint a guardian ad litem or an independent evaluator to represent the best interests of the person with dementia. Working with an experienced elder law attorney can help resolve disputes and guide the family toward a legally sound solution.

Acting Early Can Prevent Crisis

The most important thing families can do is act early. The earlier legal documents are put in place, the more control your loved one retains over their future. Waiting too long can mean going to court — and putting critical decisions in the hands of a judge.

If your loved one is showing signs of cognitive decline, now is the time to talk about legal planning. Even if a diagnosis hasn’t been confirmed, it’s better to prepare and not need these documents than the other way around.

How an Elder Law Attorney Can Help

An elder law attorney understands the complexities of dementia-related legal issues. They can:

• Draft and execute valid Power of Attorney documents
  
  
• Advise on guardianship proceedings
  
  
• Assist with Medicaid planning and asset protection
  
  
• Resolve family disputes through mediation or court representation
  
  
• Provide long-term care planning that aligns with your loved one’s needs and goals
  
  

Navigating these decisions alone can be overwhelming. Having an experienced legal partner makes the process clearer and more manageable.

Free Case Review – P&P Law Firm

At P&P Law Firm, we specialize in helping families navigate the legal challenges of dementia. Whether you’re looking to set up a Power of Attorney, initiate a guardianship, or just need guidance on your next steps, our elder law attorneys are here for you.

Contact us today for a free case review. We’ll help you understand your options and create a plan that protects your loved one — and gives your family peace of mind.