World Alzheimer’s Month: Essential steps for managing your parents’ finances

September is World Alzheimer’s Month, which is a global campaign to raise awareness of dementia and Alzheimer’s disease and improve support for those affected by these conditions.

Nobody wants to consider a time when their loved ones may become unwell and unable to manage their own affairs.

However, understanding and preparing for the potential financial challenges of caring for a parent who is no longer independent could reduce complications and stress for both of you down the line.

So, keep reading to discover some practical steps for managing your parents’ finances should the need arise.

Talk to your parents as soon as possible

You might feel uncomfortable discussing money with your parents, especially if they’re struggling to manage on their own. After all, they most likely took care of you financially for many years, and you might have relied on them for advice about money throughout your life.

As such, taking partial or complete control of your parents’ wealth could be a difficult transition for all of you. Moreover, if your mum or dad has a progressive condition such as Alzheimer’s, having meaningful conversations could become more difficult over time.

That’s why starting early conversations about how they want you to manage their wealth is crucial.

Communicating openly and honestly about each person’s concerns and needs, as well as addressing practicalities, such as bank account login information, could ensure that:

• Your parents’ feel respected and involved, so their dignity is preserved
• You understand your parents’ wishes regarding how their finances are managed
• Legal and practical planning is in place to avoid obstacles, delays and stress later on (when your parents may lack the mental capacity to give the necessary permissions)
• Your family is prepared for changes that may occur, for example, as the illness progresses
• You’re better placed to protect your financially vulnerable parents from scams and mistakes.

Create a Lasting Power of Attorney

A Lasting Power of Attorney (LPA) is a legal document that nominates one or more people (“attorneys”) to make decisions about an individual’s care and financial affairs if they lose mental capacity to do so.

There are two types of LPA:

• Health and Welfare – Allows the attorney or attorneys to make decisions about healthcare and general welfare.
• Property and financial affairs – Gives the attorney or attorneys the power to make decisions about a person’s money, property, and other financial matters.

Your parents can choose one person to act as an attorney for both LPAs, or they may wish to nominate different people for each role.

Having both types of LPA in place could provide valuable peace of mind that your parents’ needs – from paying bills to accessing appropriate care and support – will be managed by people they trust.

However, an LPA can only be set up when your parents still have the mental capacity to choose their attorneys and give consent. So, it’s essential to put this legal protection in place as soon as possible, especially if one or both of your parents has an illness such as dementia or Alzheimer’s.

If your parents don’t have an LPA and they lack the capacity to manage their wellbeing and finances, you’ll need to apply to the Court of Protection to be appointed as their “deputy”. This can be a costly and lengthy process. What’s more, the courts ultimately decide who is fit to act as an attorney, rather than your parents.

Understand and plan for care costs

There may come a time when your parents need more care and support than you and your family can provide.

There are various types of long-term care available to suit different needs, preferences, and budgets. So, it’s important to talk to your parents about their wishes. You’ll also need to plan how to finance any services they choose.

Unfortunately, the cost of professional care can be significant, especially if your parents need specialised support over several years.

According to Which? the average cost of a residential care home in the UK in early 2025 ranged from £1,076 a week in the North East of England to £1,710 in London. This equates to between £55,952 and £88,920 a year.

It’s worth checking if your parents qualify for financial support. In England, if your savings and assets fall below £23,250 (2025/26), your local authority may pay some of these fees.

Additionally, the NHS may cover the cost of a care home for people with ongoing complex health needs. However, there are strict eligibility criteria for receiving this funding, and the majority of people won’t be accepted.

As such, deciding together what type of care your parents want and putting a financial plan in place to achieve this is vital.

A financial planner can help you prepare together as a family

Consulting a financial expert with your parents could facilitate difficult discussions and ensure that nothing important is missed.

Working together to create a plan that meets all of your needs and wishes could prevent or reduce problems, delays, and emotional upset in the future.

Get in touch

If you’d like to learn how our financial planners in Bristol can support you and your parents to manage their finances if they lose their independence, please get in touch.

Email helpme@aspirellp.co.uk or call 0117 9303510.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate Lasting Powers of Attorney.