When a loved one begins showing signs of memory loss, it’s natural to focus on the emotional and medical aspects of care. But there’s another dimension that’s just as critical, and often more urgent than families expect: financial and legal planning.
At Kensington Place Redwood City, we guide families through these sensitive topics with compassion and clarity.
Proactive planning not only preserves dignity and autonomy but can also help prevent financial hardship, delay, or confusion later on.
In this guide, we’ll outline the most important steps to take during the early stages of memory loss, including long-term care insurance, VA benefits, legal documents, and how to assess care options.
With the right support, preparing for tomorrow can give you peace of mind today.
Why Planning Early Matters
Cognitive changes can progress gradually, but they often accelerate without warning.
By addressing financial and legal matters in the early stages, families can:
- Involve the person living with memory loss in decision-making
- Honor their preferences with formal legal documents
- Prevent crisis-based decisions and last-minute financial strain
- Maximize eligibility for public and private benefit programs
- Clearly understand care costs and coverage
Early planning reflects one of the core values in Our Promise, respecting each resident’s autonomy, choices, and security.
Step 1: Review and Understand Current Finances
Before applying for benefits or comparing care options, get a clear picture of your loved one’s current financial landscape.
Gather and review:
- Monthly income (Social Security, pensions, investments)
- Retirement accounts and savings
- Health and long-term care insurance policies
- Mortgage, property tax, and home equity status
- Existing debts and liabilities
- Bank account access and documentation
From there, our team can help you determine what level of support your loved one may qualify for and what additional resources might be needed.
Learn more about how to start these conversations and calculate future care needs on our Financial Planning page.
Step 2: Explore Long-Term Care Insurance
If your loved one already has a long-term care (LTC) insurance policy, now is the time to review it.
Policies vary significantly, but most provide partial or full coverage for:
- Assisted living and memory care residences
- In-home caregiving services
- Respite care
- Adult day programs
- Rehabilitation services
Confirm the policy’s eligibility triggers, such as the need for assistance with activities of daily living, and understand the elimination period, benefit limits, and claim procedures.
If no policy exists and your loved one is still insurable, consult with a qualified insurance advisor. The earlier a policy is in place, the more cost-effective and comprehensive it tends to be.
Step 3: Look Into VA Benefits for Veterans and Surviving Spouses
Many families aren’t aware that the U.S. Department of Veterans Affairs offers support for veterans and surviving spouses in need of memory care.
These include:
- VA Aid and Attendance (A&A): A monthly benefit that can be added to a veteran’s pension to help cover personal care services.
- Housebound Allowance: An additional benefit for those largely confined to their residence due to disability.
- VA Health Care: May provide geriatric or long-term care services, depending on eligibility and local availability.
For a clear overview of eligibility and application tips, visit the VA’s Aid and Attendance page.
Kensington Place Redwood City can also help you navigate this process by connecting you with accredited VA benefits specialists.
Step 4: Establish Legal Documents Early
Legal preparedness ensures your loved one’s wishes are honored and that you have the authority to act on their behalf when needed.
Work with an elder law attorney to draft:
- Durable Power of Attorney (POA): Grants a trusted individual the ability to make financial or legal decisions.
- Health Care Proxy / Advance Directive: Designates a decision-maker for medical choices and outlines preferences for treatment and end-of-life care.
- HIPAA Authorization: Allows chosen individuals access to medical records.
- Will and/or Living Trust: Provides instructions for asset distribution, guardianship, and executor responsibilities.
These documents are strongest when completed while the individual still has legal capacity. Waiting too long can complicate or even invalidate them.
Step 5: Compare Care Options and Plan for Transitions
Even if your loved one is not yet ready to move, it’s important to compare senior living options early. This allows for thoughtful, preference-based decisions rather than rushed moves during a crisis.
Use our Comparing Senior Living Options guide to evaluate:
- Types of care available: assisted living, memory care, home care
- Costs and what’s included (meals, care levels, activities)
- Contract terms and refund policies
- Transition and move-in support
- Community culture and environment
Visiting communities in person can provide clarity about fit, amenities, and staff approach.
Kensington Place Redwood City offers personalized tours and financial consultations to help families plan confidently.
Step 6: Create a Sustainable Long-Term Budget
Once you understand your loved one’s current resources, benefits, and care preferences, it’s time to create a care budget.
This should include:
- Monthly care fees (based on chosen level of care)
- Medical expenses and co-pays
- Therapy or rehabilitation costs
- Travel or relocation expenses
- Legal and financial advisor fees
- Future rate increases or care escalation costs
Our team is available to help you project potential scenarios based on your loved one’s condition and needs. Planning conservatively ensures your loved one’s comfort and care can be maintained long-term.
Compassionate Help, Every Step of the Way
Financial and legal planning can feel overwhelming, especially when it’s happening alongside an emotional diagnosis.
That’s why our community offers not just early memory care, but also guidance and resources that honor the whole family experience.
We are committed to walking with you through every phase, offering tools that reflect Our Promise: to love and care for your family as we do our own.
Final Thoughts: Peace of Mind Through Preparation
The earlier families begin financial and legal planning, the more empowered they feel when decisions arise.
Taking these steps now:
- Preserves your loved one’s voice in their own future
- Prevents unexpected financial strain
- Reduces family conflict or uncertainty
- Enhances access to high-quality, compassionate care
To speak with our team or schedule a planning consultation, please contact Kensington Place Redwood City. We’re here to help you prepare, plan, and move forward with confidence and care.