June is Alzheimer’s and Brain Awareness Month, and this is a subject that carries deep significance in the elder law community. As you or your loved ones grow older, cognitive health becomes a critical part of long-term planning.
Dementia-related conditions can affect more than just memory. They can also interfere with legal decision-making, financial stability, and the ability to remain independent.
If you or someone you care about is at risk, now is the right time to take proactive steps. A thoughtful estate and elder law plan gives you the power to stay in control, preserve your voice, and avoid unnecessary burdens on your family.
Let’s begin with what makes Alzheimer’s such a major concern, and how early planning can protect your future.
Alzheimer’s Is Widespread and Growing
More than six million Americans have contracted Alzheimer’s disease, and that number is expected to grow significantly in the years ahead.
In New Jersey, over 180,000 people are living with an Alzheimer’s diagnosis. This condition does not affect only the individual. Families must often step in to provide caregiving and make critical decisions.
Alzheimer’s is the most common form of dementia, which causes a gradual but permanent loss of brain function.
Memory loss may be the first noticeable sign, but over time, people with Alzheimer’s lose the ability to manage their finances, prepare meals, navigate daily life, or recognize loved ones. As the disease progresses, decision-making ability also fades.
Without legal documents in place, your family may be left to guess what you would want. In the worst-case scenario, they may need to go to court to take over your affairs.
Incapacity Planning Is the First Line of Defense
When you think about estate planning, your first thought might be about wills and inheritances. But elder law involves more than planning for death. It includes preparing for incapacity during your lifetime.
One of the most important documents you can create is a durable power of attorney. This device allows you to name someone you trust to manage your finances if you become unable to do so. That person can pay bills, access bank accounts, and manage investments on your behalf.
You also need a health care proxy, which is known in New Jersey as a durable power of attorney for health care. This document allows your chosen agent to speak with doctors and make medical decisions in line with your wishes.
If you do not have these documents, a judge may need to appoint a guardian. That process can be expensive and emotionally difficult for your family. Creating advance directives puts you in control and avoids the need for court involvement.
Protecting Assets With a Living Trust
A revocable living trust is another tool that can support your planning goals. With a trust, you can name yourself as the trustee and continue managing your assets as long as you can. You can then name a successor trustee to step in automatically if you become incapacitated.
This structure avoids disruption and allows the successor trustee to take over quickly. There is no need to freeze your accounts or wait for court authorization. The trust instructions guide your trustee on how to manage and distribute your assets, both during your life and after your passing.
Many New Jersey families use living trusts to streamline estate administration, but the added benefit of incapacity planning often goes overlooked. It can provide peace of mind at every stage.
Medicaid Planning for Long-Term Care
Most people are surprised to learn that Medicare does not cover long-term custodial care. If you develop Alzheimer’s and require daily assistance, you will likely need to turn to Medicaid for coverage.
Medicaid has strict financial eligibility rules. If your assets are too high, you may not qualify. If you give assets away too late in the process, those transfers can trigger a penalty period.
The right elder law plan includes strategies for protecting your assets while maintaining eligibility for benefits. In many cases, this involves creating an irrevocable Medicaid trust. You can place certain assets into this trust ahead of time and start the five-year look-back period.
Once the look-back period ends, those assets are no longer countable. You preserve them for your family while gaining access to the care you need.
Support for Caregivers
Alzheimer’s does not affect only the person with the diagnosis. Family caregivers often take on full-time responsibilities without proper support. Legal planning can reduce that burden and create a better experience for everyone involved.
You may want to consider a caregiver agreement, which allows a family member to be paid from your assets in exchange for providing care. This must be carefully structured to comply with Medicaid rules, but it can make caregiving more sustainable.
You can also use your trust to set aside funds specifically for care, or include instructions for how you wish to be cared for in your health care directive. These tools let you define what quality of life means to you.
Review and Update Your Plan Regularly
Planning for Alzheimer’s is not a one-time task. Your health, family, and finances may all change over time. So should your estate plan.
You should review your documents every few years, or any time a major life event occurs. That includes marriage, divorce, retirement, a diagnosis, or the birth of a grandchild. Keeping your documents current makes it easier for your loved ones to carry out your wishes.
Start the Conversation This June!
Alzheimer’s and Brain Awareness Month offers an opportunity to take action. Whether you are planning for yourself or helping a loved one, now is the time to make sure your legal documents are in order.
To get started, call our Warren, NJ elder law and estate planning office at 908-222-8803 or send us a message through our contact page.
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