Dealing with Dementia

Dealing with Dementia

“I saw the bravest man in the world playing the hardest role of his life,” Robin Williams’ widow wrote in October of her husband’s dementia and the months leading up to his death in 2014. When his anxiety, personality changes and memory problems began three years ago, a “foundation of friendship and love was our armor,” Susan Schneider Williams said.

Her story likely strikes a chord among those caring for a loved one with dementia. The Alzheimer’s Association estimates that more than 15 million Americans currently are. And her words speak to their important role: to offer companionship and help in planning for the future.

In the early stages of the disease, you and your loved one can work together to make decisions regarding long-term care and financial details. When you know their wishes, it builds confidence for the path forward. That’s why it’s important to act when the first symptoms appear.

The warning signs

So, what can early-stage dementia look like? Experts say to urge someone to see a doctor if they:

  • Consistently struggle to find the right word or name
  • Have difficulty remembering names of people they’re introduced to
  • Lose their sense of time and place
  • Forget where they are or how they got there
  • Lose or misplace things of value
  • Have trouble planning or organizing

“What we did not know was that when these diseases ‘start’ (are diagnosed) they have actually been going on for a long time,” Williams said of her husband’s swift decline from memorizing an entire script to grasping for a single line of dialogue. It wasn’t until after the 63-year-old actor died that his family found out he had Lewy body dementia.

Taking action

When it’s time to step in, you don’t have to go it alone. Call a family meeting and determine who’s willing to pitch in with caregiving or managing finances. You should also ask your loved one to take you to a meeting with a financial advisor. There you can get expert help in ensuring all estate planning documents are up to date and make a plan for dealing with financial issues. You also might want to discuss the idea of establishing legal authority through a power of attorney, so you can help make important decisions.

Remember, too, that it’s important to get support for yourself. The best thing you can do as a caregiver is to stay physically and emotionally strong and get help when needed. You can always ask your advisor to coordinate with other professionals offering assistance, including your loved one’s financial advisor.

Next steps:

Talk to your professional team about:

  • Estate planning
  • Budgeting for long-term care
  • Planning for the possibility of cognitive decline

Do not miss medical tax deductions

There are plenty of horror stories about uncovered medical expenses these days, and the truly horrifying part is that many of them belong to people who actually have health insurance. But anytime you or a family member is facing a health crisis or an unusual medical-related expense, it’s best to check to see if you might get a break from Uncle Sam.

A tax professional and a financial planner should be consulted to determine whether there are any tax issues or any ways to defer cost or save money at any part of the process. The Internal Revenue Service lets you deduct medical costs as long as they are more than 7.5 percent of your adjusted gross income (AGI). That means if your AGI is $50,000, you can deduct only those unreimbursed expenses that exceed $3,750.

Getting there requires some planning, which is why it’s so important to gather up every dime of unreimbursed medical, dental and vision care expenses and review it carefully.

Here are things people often miss:

Medically related travel: The IRS evaluates the standard cents-per-mile allowance each year for travel to and from medical treatments. Between Jan. 1-June 30, that rate was 19 cents a mile. Between July 1 and Dec. 31, the rate will rocket to 27 cents a mile.

Insurance payments from already taxed income: This includes the cost of long-term care insurance, up to certain limits based on your age.

Uninsured medical treatments: This includes what you spend for an extra pair of eyeglasses or set of contact lenses, false teeth, hearing aids or artificial limbs.

Rehab treatment: What you pay for alcohol or drug-abuse treatments can be noted on Schedule A.

Weight-loss to smoking cessation: If a doctor prescribes it, you’ll be able to deduct it.

Laser vision correction surgery: May be an allowable expense to deduct on your current taxes.

Doctor-recommended equipment and related expenses: If your doctor tells you that you need a humidifier installed on your heating and air conditioning system to help your breathing problems, you might be able to deduct all or part of the cost for the device as well as the additional energy costs to run it.

Some medical education costs: If you, your spouse or child have a chronic medical condition and you attend a conference to learn more about it, you can count admission and transportation expenses as a deduction, but not meals and lodging.

If you’re self-employed: You may deduct, as an adjustment to gross income, the full cost paid for medical insurance for you, your spouse and your dependents.

Lodging for out-of-town treatment: When accompanying a minor dependent to out-of-town medical treatment, hotel bills may be partially deductible.

Here are some less common expenses to watch:

Medically necessary home improvements or equipment: If you do a home improvement or bring in special equipment that’s considered medically necessary for you, your spouse or your dependents, you’ll be able to deduct the cost. These may include special entrance/exit ramps to your house, widening doorways, modifying kitchens or bathrooms, or adding a chairlift for the physically disabled. Because these improvements are not expected to add to the market value of the home, they are considered fully deductible. If the improvement increases the value of your home, only the amount of the expense that exceeds the increase in the property value of your home is deductible.

Nursing services: If you are paying out-of-pocket for a home-based nurse, these expenses may be deductible.

Lead paint removal: Lead paint is dangerous, and the money needed to remove the paint from a home is deductible.