Dementia is a widespread condition in the UK that affects many individuals and their loved ones. According to the Alzheimer's Society, over 850,000 people are living with dementia in the UK. This number is expected to increase to over 1 million by 2025.

Dementia Action Week, which runs from 15-21 May, encourages people to ‘act on dementia’, and during 2022 the charity saw a 43% increase in those asking for information and support to their dementia support line.

This year’s Dementia Action Week 2023 focuses on diagnosis rates, with The Alzheimer’s Society seeking to reframe the idea that memory loss is just part of ageing. There has been a drop in dementia diagnosis, not because fewer people are living with dementia, but rather fewer are going to their doctor to get a diagnosis.

Having dementia can impact people’s ability to manage finances. As a loved one, it can be challenging to watch someone struggle to handle their affairs and it may be necessary to take over to ensure their financial well-being.

A survey conducted by the Alzheimer's Society found that 76% of people with dementia and their carers reported experiencing problems with managing their finances.

We’ve suggested some steps in taking over a loved one’s finances if they have been diagnosed with dementia.

Identify the signs of dementia

The first step in taking over a loved one's finances is to identify the signs of dementia.

These signs can include forgetfulness, difficulty with basic math, difficulty remembering appointments or events, confusion about the time or place, and trouble handling transactions. It is essential to be aware of these signs as early as possible to help prevent financial abuse and protect your loved one's assets.

Discuss the situation with your loved one

Once you have identified the signs of dementia, it is important to discuss the situation with them.

This conversation can be difficult, but it is crucial to approach it with empathy and compassion. It is essential to create an understanding that their condition may require you to take over their finances.

Seek legal advice

After discussing the situation, it is recommended to seek legal advice.

This is particularly important if your loved one has not already granted you power of attorney. A solicitor can help you understand the legal requirements for taking over your loved one's finances, including obtaining legal guardianship or deputyship if necessary.

Obtain the power of attorney

If your loved one is still capable of making decisions, you may be able to obtain power of attorney.

Power of attorney is a legal document that allows you to make financial decisions on someone else’s behalf. This document must be signed by them while they still can do so.

Manage the finances

Once you have obtained power of attorney, you can begin managing your loved one's finances.

This may involve reviewing their accounts, paying bills, and ensuring that their financial affairs are in order. It is important to keep detailed records of all financial transactions and to provide regular updates to them if possible.

Protecting assets

As a financial caregiver, it is important to protect your loved one's assets from financial abuse.

This can include monitoring their accounts for unusual activity, ensuring that their bills are paid on time, and working with their bank and financial providers to prevent unauthorized access to their accounts such as fraud or scams.

Seek support

Taking over a loved one's finances can be overwhelming, particularly if you are also providing care for them.

It is important to seek support from family members, friends, and support groups. There are also many resources available, such as the Alzheimer's Society and Age UK, which can provide guidance and support for caregivers.

Taking over someone’s finances can be a complex and emotional process, but it is essential to ensure their financial well-being and protect their assets from financial abuse. It is important to approach the situation with empathy and compassion and to seek legal advice if necessary.

Remember to take care of yourself as well and seek support when needed.