Peapack-Gladstone Alzheimer’s and Dementia Planning Lawyer

A diagnosis of Alzheimer’s or dementia often makes the need for careful future planning more urgent. Concerns about long-term care, healthcare directives, power of attorney, and other critical decisions can quickly arise. You may want to take the necessary steps to ensure your wishes are carried out, but feel unsure about the specifics.

If you or someone you care about is facing the challenges of legal planning after a dementia diagnosis, the Van Dyck Law Group is here to help. Our experienced elder law attorneys can assist with every aspect of your planning needs, from establishing powers of attorney to creating long-term care strategies. Taking action early can provide more flexibility and peace of mind, so reach out to us today to get started.

How a Peapack-Gladstone Dementia Planning Attorney Can Help with Your Estate Planning

Clients are often surprised at how complex estate planning is. They might come to us thinking they just need to make a will, only to discover there are additional options that might better meet their needs.

Your Peapack-Gladstone Alzheimer’s planning attorney will learn about your plans and suggest the best solutions. This does usually involve making a will, but we might also suggest ways to reduce taxes for your heirs or maintain Medicaid eligibility for you. For example, you might move assets into a trust or make certain gifts during your lifetime.

Here are just a few of the ways detailed estate planning can benefit you and your family:

• Confidence in how your estate is handled. A well-prepared and regularly updated will ensure your assets are passed on according to your preferences. Without one, a New Jersey court will distribute your assets based on inheritance laws—a process that may or may not reflect your wishes.
• Minimizing or bypassing probate. We can help you design a strategy that may significantly reduce or even eliminate the need for probate, saving your loved ones time, money, and stress.
• Lowering the tax burden on your heirs. If inheritance taxes are a concern, we can implement proactive planning tools—like lifetime gifting or establishing trusts—to help minimize tax exposure and maximize what your beneficiaries receive.
• Planning for future care needs. Long-term care, assisted living, or nursing home costs can be financially overwhelming. With proper planning, we can help you qualify for programs like Medicaid sooner, while preserving your assets for your family through effective asset protection strategies.

When Do You Need a Power of Attorney?

If you have been diagnosed with memory loss, we will most likely recommend that you choose a power of attorney to make medical and financial decisions if you are unable to do so. We can create a durable power of attorney (POA) that remains active even when you are incapacitated.

In the later stages of dementia, people often lose the ability to make informed decisions. This typically happens when they can no longer understand new information, evaluate choices, or express their preferences clearly.

If someone in New Jersey becomes legally incapacitated, another person must take over responsibility for making decisions related to healthcare, finances, and other legal matters. But who is authorized to take on that role?

If this individual had a prepared and signed power of attorney (POA) document while still mentally capable, the person they named as their agent would gain the authority to act on their behalf. When making a POA, you can appoint one agent to manage all affairs or assign separate people to handle medical and financial matters. You could also create a POA for a specific task, such as handling the sale of a home or other assets.

Creating a POA is only part of the process—it’s equally important to have a clear discussion with your chosen agent. Sharing your values and expectations helps ensure they’re prepared to make decisions that reflect your wishes if you’re ever unable to speak for yourself. Additionally, we may recommend an advance healthcare directive to provide the agent with support and guidance on your wishes.

How Can a Peapack-Gladstone Dementia Planning Lawyer Help with Long-Term Care Planning?

Long-term care costs are an important consideration for everyone as they age. Research suggests that about 80 percent of retirees will eventually need some form of long-term care support, with levels of need varying from one person to the next. Unfortunately, the average price for these services ranges from $5,900 a month for basic assisted living to $10,646 for a private nursing home room.

These expenses leave many people with dementia wondering what to do next. Even a well-funded retirement account may not last long, with thousands of dollars a month going to care costs.

Clients often tell us they believe Medicare will pay for their long-term care, but unfortunately, this is not true. Medicare only covers limited stays in skilled nursing facilities—it’s not meant for long-term care.

At the same time, people with early-onset dementia (diagnosed before the age of 65) may not even qualify for Medicare. Worse, they might not be financially ready for retirement when their illness forces them to stop working.

For all of these reasons, it’s essential to speak with a Peapack-Gladstone dementia planning expert about your care planning needs. We’ll review your situation and assess your eligibility for programs like Medicaid, Social Security Disability Insurance (SSDI), and more.

How to be Qualified for SSDI?

If memory loss or any other physical or mental illness forces you into an early retirement, you may be eligible for SSDI. This federal program provides monthly financial assistance to people whose disabilities significantly limit their ability to earn a living.

Eligibility for SSDI depends in part on your work history. Specifically, it’s tied to work credit units you earn by paying Social Security taxes on your income. The number of credits you need varies based on your age at the time of disability.

Work credit requirements are updated annually. In 2025, you’ll earn one credit for every $1,810 in wages or self-employment income. If you make at least $7,240 during the year, you’ll receive the maximum of four credits. Most full-time employees and many part-time workers can meet this threshold.

How Do Income and Assets Affect Medicaid Eligibility?

Unlike Medicare, Medicaid will pay for long-term dementia care. It doesn’t require work credits like SSDI, but you must meet fairly low income and asset requirements.

In New Jersey, Medicaid is managed through the NJ FamilyCare program, and eligibility is determined based on income limits that are updated regularly. As of 2025, adults between the ages of 19 and 64 may qualify if their income is at or below 138% of the Federal Poverty Level (FPL). For individuals over 65 or those with certain disabilities, coverage may instead fall under the NJ FamilyCare Aged, Blind, and Disabled (ABD) program.

Beyond income qualifications, applicants must also meet specific asset limits. Typically, this means using non-exempt resources to cover care expenses until financial eligibility is met—a process commonly known as “spending down.”

Peapack-Gladstone Alzheimer’s and Dementia Planning FAQ

What are Exempt and Non-Exempt Assets for Medicaid Eligibility?

Medicaid does allow some exemptions that are not counted toward eligibility. For instance, your home is usually exempt so long as your spouse still lives there or you express an intent to return home (even if you are currently in a long-term care facility). You can also exempt one vehicle, plus your personal belongings, like clothing, jewelry, and hobby items.

Non-exempt assets include cash, investments, bonds and stocks, bank accounts, real estate that isn’t your primary residence, and additional vehicles.

Do You Have to Spend Down All Non-Exempt Assets for Medicaid Eligibility?

The answer varies depending on your situation, but spending down assets is not always necessary. In some situations, you may be able to safeguard assets by moving them into a trust or transferring them in specific ways.

Medicaid’s rules for eligibility and five-year “look-back” period for asset transfers complicate this process. Unfortunately, some people try to dispose of assets in ways that trigger Medicaid penalties. These typically don’t last forever, but even a brief penalty period of a few weeks or months can delay necessary care, which can negatively impact your health. For this reason, we don’t advise trying to move assets on your own.

The best way to ensure you maintain eligibility without penalties is to discuss your situation with a Peapack-Gladstone Alzheimer’s planning lawyer. We will examine your options and help you find the best solution for your future plans. Then, we’ll assist you in carrying out your wishes in ways that meet Medicaid’s standards for eligibility.

Contact Us if You’re Looking for a Peapack-Gladstone Alzheimer’s Planning Attorney

If you or a loved one is facing the complexities of dementia legal planning, the Van Dyck Law Group is ready to help. Our skilled New Jersey attorneys will guide you through your available options, address your concerns, and prepare customized legal documents that reflect your unique situation and goals. We understand the emotional weight that often comes with a dementia diagnosis, and we’re committed to providing compassionate, informed guidance every step of the way. We can be reached at (609) 293-2621.