Dementia and managing money
People living with dementia may have always managed their own or their family's finances. But at some point, they may need extra support to help them.
Enduring power of attorney
If you're living with dementia and can still make your own decisions (have mental capacity), it's a good idea to set up An enduring power of attorney (EPA) for your financial and property affairs.
Choose someone you trust to act as your attorney. This means they can act on your behalf, and in your best interests, when you can no longer make decisions.
The EPA can be used with your permission, even if you're still able to deal with many aspects of your finances yourself. Or it can be held in readiness for when you can no longer make decisions. If this occurs, your attorney must register the EPA.
Tips for making money easier to manage
There are steps you can take now to manage your financial affairs more easily:
- set up standing orders or direct debits for regular bills and subscriptions so they're paid on time
- have all your income, including pension and benefits, paid into your bank or building society account
- consider getting a chip and signature card – you only need supply your signature rather than a personal identification number (PIN)
- set up a third-party mandate – this gives someone else access to your bank account - you can specify how much access to give (for example, a set amount for the weekly shop)
- MoneyHelper: Make your money easier to manage by yourself
- MoneyHelper: Help manage the money of someone you're caring for
Joint accounts
If you already have, or are considering setting up, a joint bank or building society account, remember that:
- each account holder can withdraw money without asking the other person
- you're each liable for the other's debts
- if you lose mental capacity and do not have a power of attorney, the bank may restrict the account to essential transactions
It's sensible to set up or keep a separate personal account for money that is not used for essential bills.
Benefits for people with dementia and their carers
There are a range of benefits that you and your carer (if you have one) may be entitled to.
Some may be means-tested (whether you get them will depend on your financial situation). Others may depend on your National Insurance contributions or your health and care needs.
If you have not done so already, it's a good idea to get a needs assessment.
This is free and can identify anything you may need help with. It may also show that you qualify for benefits, such as Attendance Allowance.
A carer can also apply to social services for a carer's assessment, which can show if they're eligible for support, including benefits such as Carer's Allowance.
Benefits for people with dementia
You may have extra expenses, such as paying for help at home, so it's important to make sure you're receiving all the benefits you're entitled to.
These include:
- Attendance Allowance – for those over State Pension age who need help at home -you can claim Attendance Allowance regardless of your income and savings
- Personal Independence Payment (PIP) – for those under State Pension age who need help at home
If you get Attendance Allowance, you may also be entitled to other benefits, such as:
Find out more about benefits for those over State Pension age at:
To make sure you're getting all the benefits, services and supports you're entitled to visit:
Benefits for carers
As a carer, you may be entitled to one or more benefits to help you with the cost of caring, such as:
- Carer's Allowance – the main state benefit for people who look after someone for more than 35 hours a week
- Carer's Credit – a National Insurance (NI) credit for those under State Pension age and looking after someone for more than 20 hours a week
- Financial support when caring for someone
Claiming benefits on behalf of someone else
If you look after someone who cannot manage their money because they have lost mental capacity, you can apply for the right to claim their benefits.
If or when you lose capacity, your attorney must register the form with the Office of Care and Protection
The forms to do this are available at:
Get help with EPAs
If you need advice with EPAs, you can:
- contact the Office of Care and Protection on 0300 200 7812
- talk to a solicitor, preferably one who specialises in this area, by searching the Law Society of Northern Ireland
- contact your HSC Trust
What happens if you do not make an EPA
If you do not make an EPA and later become unable to make decisions yourself, people you do not know could end up making crucial decisions for you.
Your family will not be able to pay bills or make decisions about your care and may need to apply to the Office of Care and Protection to become a controller.
This gives similar powers to that of an attorney. But it's a time-consuming and expensive process.
Advance statements
An advance statement is a written statement that sets down your preferences, wishes, beliefs and values regarding your future care.
They let your family and healthcare professionals know your wishes for your future health and social care if you become unable to make decisions (lack mental capacity).
You can write the statement yourself, with support if needed from relatives, carers or health and social care professionals.
It can include:
- how you want any religious or spiritual beliefs to be reflected in your care
- where you'd like to be cared for – for example, at home or in a care home
- how you like to do things – for example, if you prefer a shower instead of a bath
- music, TV or DVD preferences
An advance statement is not legally binding, but your attorney (if you have one) and healthcare team will take it into account.
Make a will
It's a good idea to make a will if you have not done so already.
This ensures that when you die, your money, property and possessions go to the people you choose.
If you die without making a will, the law of Intestacy sets out who should inherit your estate. Further information is available at:
A person with dementia can still make or change a will, if you can show that you understand its effect.
It's advisable to use a solicitor who specialises in writing wills.
The cost of a solicitor will vary. Ask what the fee will be and what this includes before going ahead.
Some charities offer a free will writing service in the hope that you'll consider leaving them some money. But this is optional.
Your will must be signed and formally witnessed. It should also be kept in a safe place where others can find it, either at home or with a solicitor.