Dementia and Capacity: What Families Need to Know
When families hear the word dementia, the first reaction is often panic.
They assume their parent can’t sign documents anymore.
They assume the will is invalid.
They assume someone needs to “take over.”
But that assumption isn’t actually how the law works.
In Canada, capacity isn’t decided by a diagnosis alone. It comes down to whether someone understands the decision they’re making and appreciates the likely consequences of that choice.
Dementia is a medical condition. Incapacity is a legal determination. They can overlap, but they aren’t automatically the same thing.
When families don’t understand that distinction, it can lead to unnecessary tension, rushed decisions, and sometimes court processes that might have been avoided with clearer planning.
Capacity Is Decision-Specific
Capacity isn’t all-or-nothing.
A person might still be perfectly able to decide where they want to live, express their medical wishes, or manage everyday banking. At the same time, they may struggle with more complex decisions, like restructuring investments, transferring property, or changing their will.
That doesn’t mean they’ve lost capacity altogether. It means capacity can be decision-specific.
In Canada, the legal question is fairly straightforward. Does the person understand the information relevant to the decision? And do they appreciate the consequences of that choice?
That’s what matters.
It isn’t about whether they occasionally forget an appointment. It isn’t about repeating a story. And it isn’t about the label attached to a diagnosis.
Capacity can also fluctuate. Someone may be sharp and clear in the morning, then tired and confused later in the day. That variability is one of the reasons early documentation is so important. It provides clarity at a time when clarity still exists.
When Planning Waits Too Long
Sandra noticed her mother was becoming forgetful. Nothing dramatic, just small changes. They kept putting off updating the power of attorney because “she’s still mostly fine.”
Six months later, her mother could no longer clearly understand financial documents. The lawyer wouldn’t proceed. The family had to apply to court for trusteeship. It took months, legal fees added up, and tension between siblings escalated.
The difficult part? If they’d acted earlier, a simple enduring power of attorney likely would have avoided the entire process.
Once capacity is gone, options narrow quickly.
Proactive Planning Protects Independence
When dementia is diagnosed, families often feel an immediate urge to step in and protect. That instinct usually comes from love, and from fear.
But planning at this stage isn’t about taking control away. It’s about preserving choice while choice is still firmly in place.
If someone still has capacity, this is the window to put thoughtful safeguards around them. That might mean creating or updating an Enduring or Continuing Power of Attorney, putting a Personal Directive or Representation Agreement in place, reviewing a will, confirming beneficiary designations, or simply organizing financial and digital information so nothing is left uncertain.
In most Canadian provinces, an Enduring Power of Attorney allows a trusted person to manage financial matters if capacity is later lost. A Personal Directive appoints someone to make personal and healthcare decisions. The names of the documents vary by jurisdiction, but the purpose is consistent. They allow someone to step in with legal authority when needed, without removing independence prematurely or requiring a court application.
What matters most is timing. When these documents are signed while capacity is clearly intact, the individual chooses who will step in. Their voice guides the structure. If planning is delayed too long, that choice may no longer be theirs, and it can shift to a court process instead.
The Risk of Undue Influence
Cognitive decline increases vulnerability. Even subtle impairment can raise questions later.
If a will is changed after a dementia diagnosis, family members may question whether the person truly understood what they were signing. If a new beneficiary appears on an account, suspicions can arise.
Even when intentions were genuine, lack of medical documentation can open the door to litigation.
I’ve seen families torn apart not because anyone acted dishonestly, but because capacity wasn’t clearly documented at the time decisions were made.
That’s avoidable.
When Independence Is Removed Too Quickly
When Steven was diagnosed with early-stage dementia, his adult children immediately insisted he could no longer manage any finances. They pressured their mother to “take over everything.”
In reality, he was still capable of understanding most day-to-day decisions. The abrupt loss of control caused resentment and distress. Family relationships suffered.
With clearer guidance and documentation, they could have structured oversight gradually instead of removing independence overnight.
Capacity doesn’t disappear overnight. Planning should respect that reality.
When Court Applications Become Necessary
If capacity is lost and no valid documents are in place, families are often left with one option: applying to the court for guardianship, trusteeship, or committeeship, depending on the jurisdiction.
That process can take time. It usually requires medical assessments, formal applications, and often legal support. There can be waiting periods. Sometimes there are disagreements about who should be appointed.
It’s rarely just administrative.
It can be stressful. It can strain relationships. And it often unfolds at a moment when a family is already dealing with grief, uncertainty, or change.
Most importantly, when it reaches that stage, the individual no longer gets to choose who will act for them. The decision shifts out of their hands.
This Is Where Clarity Matters
This is usually the point where families feel uncertain.
They’re not sure whether capacity still exists. They’re not sure which documents are already in place. They don’t want to overstep, but they also don’t want to ignore something important.
That’s why reviewing things early makes such a difference.
If you’re supporting a parent or spouse and you’re unsure where things stand, it’s far easier to look at the documents now while clarity still exists than to sort it out during a crisis.
You don’t need to take over. You need to understand what’s there, what isn’t, and what might need attention.
If you’d like help preparing for those conversations or organizing next steps before anything urgent happens, you can learn more about how I support families at https://nexsteps.ca/.
When everyone understands the plan, decisions tend to feel calmer and more measured, and family misunderstandings are less likely to occur.
Can They Still Make a Will?
One of the hardest questions families face is this: can someone with dementia still make or update a will?
The answer isn’t automatic.
A diagnosis on its own doesn’t cancel a will or prevent someone from making one. What matters is whether they understand what they’re doing at the time they sign it.
That usually means understanding what they own, who might reasonably expect to benefit, and how their choices will affect the people around them.
Sometimes that clarity is still there. Sometimes it isn’t.
When there’s any uncertainty, lawyers will often recommend a medical assessment at the time the will is signed. It may feel uncomfortable in the moment, but that extra step can prevent conflict later.
This is where timing becomes so important. Waiting too long can remove options. Acting carefully, while capacity is still present, can preserve them.
Balancing Protection and Dignity
Families navigating dementia are usually carrying more than logistics. There’s love in it. There’s responsibility. And sometimes there’s guilt.
They don’t want to step in too soon. They don’t want to take something away that still belongs to the person they care about. At the same time, they’re worried about mistakes, vulnerability, or someone taking advantage.
It’s not an easy place to be.
The conversation isn’t about control. It’s about getting the balance right. How do you protect someone without diminishing them? How do you prepare for change without acting as though change has already happened?
Those discussions are much easier when they happen early, while clarity still exists and decisions can be made thoughtfully instead of under pressure.
A Diagnosis Isn’t the End of Autonomy
A dementia diagnosis doesn’t automatically take away someone’s legal rights. It doesn’t mean they can’t make decisions. And it doesn’t invalidate documents that were properly signed.
What it does mean is that timing becomes more important.
There may still be an opportunity to put the right documents in place, to review what already exists, and to make decisions while clarity is present. That opportunity doesn’t last forever.
When families wait until capacity is clearly gone, their options will narrow. Decisions become reactive. Stress increases.
In many cases, the difference between a difficult transition and a manageable one comes down to when those conversations begin.
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Disclaimer: This content is for general information only and is not legal, financial, medical, or tax advice.
