Dementia and legal decisions: planning ahead while you can

A diagnosis of dementia raises many questions, and dementia and legal decisions are often near the top of the list. Can I still make a will? Who will manage my money if I cannot? Who will speak for me about my health?

A diagnosis does not mean you have lost the right to decide. Many people can make important legal documents after diagnosis. Planning early, while you can clearly express your wishes, makes things easier for you and your family later.

Why planning early matters

Dementia is common. The Australian Institute of Health and Welfare estimates that about 439,000 Australians were living with dementia in 2025.

Dementia usually changes over time, and the ability to make complex decisions can become harder. That is why Dementia Australia recommends planning ahead with family and friends well in advance, ideally before or very soon after a diagnosis.

Dementia Australia also points out that the law assumes a person has capacity unless it is shown they do not. The question is not whether you make a “good” decision, but whether you can make an informed one.

Planning early means:

• your own wishes guide future decisions
• the people you trust have legal authority to help when needed
• your family is less likely to face uncertainty or conflict
• a tribunal application is less likely to be needed.

The main legal documents to consider

Dementia Australia’s planning guide lists four key documents.

A will

A will sets out who will inherit your assets after you die. After a diagnosis, it is worth checking that your will is up to date and reflects your current wishes.

An enduring power of attorney

This lets you appoint one or more people to make financial or legal decisions for you. In Victoria, it is made under the Powers of Attorney Act 2014 and can also cover personal matters. In NSW, enduring powers of attorney are made under the Powers of Attorney Act 2003.

A health and lifestyle decision maker

This person makes medical and health decisions if you cannot. The name differs by state. In Victoria it is a medical treatment decision maker. In NSW it is an enduring guardian, who can also make lifestyle decisions such as where you live.

An advance care directive

This records your values, preferences and directions about future health care. Advance Care Planning Australia explains that laws vary between states and territories. Some parts, such as a clear refusal of a specific treatment, can be legally binding.

Because the rules differ, it is safest to complete documents under the law of the state where you live. Your state’s public trustee, public advocate or public guardian website has forms and guidance.

Other practical steps

• Review who can access joint bank accounts.
• Make sure important papers are organised and someone you trust knows where they are.
• Talk with a financial adviser about future care costs.
• Keep a list of accounts, passwords and regular bills in a secure place.
• Let your bank know who is authorised to act for you once documents are signed.

What the law looks at when you make these documents

Each document needs you to have capacity for that particular decision at the time you sign. Capacity is decision-specific. For example, a person might be able to appoint a trusted daughter as their attorney, even if they would find it hard to manage a complex share portfolio.

In Victoria, the Office of the Public Advocate explains that you need to be able to understand, retain and weigh the relevant information, and communicate your decision. Wills use a separate common law test that looks at your understanding of the will, your property and the people who might expect to benefit.

Capacity can also vary from day to day. People with dementia often have better and worse times. Arranging appointments for a time of day when you are usually at your sharpest can help.

When a capacity assessment can help

Many people make these documents with their lawyer and never need a formal assessment. An assessment may be helpful when:

• the dementia is more advanced, or your lawyer is unsure about your understanding
• there is conflict in the family, or someone may challenge the documents later
• the new documents are very different from earlier ones
• there are concerns about pressure from another person.

A neuropsychologist (a psychologist who specialises in how the brain affects thinking) can assess your understanding of the specific document and your thinking skills. A report written close to the time of signing is strong evidence if the documents are ever questioned.

This can matter a great deal for people with younger onset dementia, who may have children at home, a mortgage, a business or superannuation to think about. Dementia Australia suggests that a person with younger onset dementia seek legal advice, and consider medical verification of their capacity, before preparing a will. You can read more in our guide on what a capacity assessment involves.

Talking with your family

These conversations can feel hard, but many families find them a relief once started. It can help to:

• start with what matters most to you, such as staying at home or being near family
• choose decision makers who know your values and will respect them
• tell your doctors and family where your documents are kept
• review your documents if your circumstances change.

You might also write down your wishes about daily life, such as routines, food, faith, music and the people you want to see. Notes like these are not always legally binding, but they help the people who support you understand what matters to you.

A diagnosis of dementia can bring grief, worry and big adjustments for the whole family. Talking with a counsellor or psychologist can help. The National Dementia Helpline, run by Dementia Australia, offers free information and support on 1800 100 500.

If planning did not happen in time

If a person can no longer make these documents and decisions need to be made, a tribunal can appoint someone. In Victoria this is VCAT, which can appoint a guardian or administrator. In NSW it is NCAT, which can make guardianship and financial management orders. In Victoria, the Supreme Court can also authorise a statutory will for a person who lacks capacity to make one. These processes take time and need evidence, which is one more reason to plan early.

Invictus Health 能提供哪些帮助

Our neuropsychologists provide capacity assessments for wills, powers of attorney and other decisions. If you are worried about memory changes, a neuropsychology assessment can help clarify what is happening. We also offer counselling for people and families adjusting to a diagnosis. Neuropsychology reports are reviewed by Dr Judy Tang OAM.

No GP referral is needed to book most assessments. This article is general information and is not legal advice. Please speak with a lawyer or other qualified professional about your situation.