After a diagnosis, legal and financial planning is one of the kindest things a person can do — for themselves and their family. The key is to act early, while the person can still understand and sign documents and share their wishes.
The core documents
Durable power of attorney for finances
Names someone to manage money, bills and property if you can't. “Durable” means it stays valid after you lose the ability to decide.
Health care power of attorney (health care proxy)
Names someone to make medical decisions for you when you can't.
Advance directive / living will
Records what treatment you would and wouldn't want — for example, feeding tubes, hospital stays, or resuscitation late in the illness.
Will (and possibly a trust)
Says how property will be handled. A trust can make managing assets easier.
HIPAA release
Lets doctors share information with named family members.
POLST or MOLST form (later)
A medical order, completed with a doctor, that turns treatment wishes into instructions for emergency and hospital staff.
Rules differ by state. An elder law attorney can prepare these; some legal aid programs help older adults for free or at low cost — ask the Eldercare Locator.
Money matters
- Gather information in one place: bank and retirement accounts, insurance, debts, deeds, passwords, and monthly bills.
- Watch for early money mistakes — missed bills, unusual purchases, or gifts to strangers can be among the first signs.
- Protect against scams. People with memory changes are frequent targets. Consider call blocking, account alerts, and a trusted person with view-only access to accounts.
- Understand what pays for long-term care. Medicare does not pay for long-term personal or custodial care. Options include savings, long-term care insurance, Medicaid (with strict income and asset rules), and VA benefits such as Aid and Attendance.
- Younger than 65? Look into SSDI — see young-onset dementia.
A family conversation guide
- What matters most to you as things change?
- Who do you trust to make money decisions? Health decisions?
- Where would you want to live if you need more help?
- What would you want — and not want — near the end of life?
- How should we decide about driving?
Write down the answers, and share them with everyone who might be involved.
Sources
Reviewed October 2026. Education only — not medical, legal or financial advice.
In depth
More in this section
Power of attorney
What a durable power of attorney for money is, when a person with dementia can still sign one, Virginia rules, picking an agent, and dealing with banks.
Read →Advance directive
How a Virginia advance directive works in dementia: naming a health care agent, writing dementia-specific wishes, timing, and the POST or POLST form.
Read →Guardianship
When a person with dementia may need a court-appointed guardian or conservator, how the Virginia process works, and gentler options to try first.
Read →Wills and trusts
How wills and trusts work after a dementia diagnosis: capacity to sign, Virginia will rules, living trusts, and special needs trusts.
Read →Medicare
What Medicare pays for when someone has dementia, from memory checks and the GUIDE program to hospice and home health, and the big gap: long-term care.
Read →Medicaid
How Medicaid pays for nursing homes and care at home in dementia, with Virginia's CCC Plus Waiver, the 5-year look-back, spouse rules and estate recovery.
Read →VA benefits
How VA health care, Aid and Attendance pension, caregiver support, home care and community care can help a veteran with dementia and the family.
Read →LTC insurance
How long-term care insurance pays when a person has dementia: the memory trigger, waiting period, filing a claim, hybrid policies and Virginia rules.
Read →Social Security disability
How SSDI and SSI work when dementia starts before 65, how Compassionate Allowances speed things up, what to gather, and what to do if you are denied.
Read →Taxes
Tax breaks that can ease dementia care costs: the dependent care credit, medical deductions, claiming a parent, HSAs and Virginia tax rules.
Read →Cost of care
Typical 2025 prices for home care, adult day, assisted living, memory care and nursing homes, with Virginia numbers and how families pay.
Read →Elder law attorney
What an elder law attorney does, how lawyers charge, how to find and check one, and where to get free or low-cost legal help in Virginia.
Read →