Navigating Dementia: A Guide for Family Members on Contracts, Powers of Attorney, and Legal Responsibilities
Strategies for managing dementia: insight and advice.
Living with dementia isn't just a challenge for the affected individual, but also for their loved ones. With an estimated 1.8 million people in Germany affected by dementia, family members must be aware of potential legal hurdles.
According to the latest issue of "Stiftung Warentest Finanzen" magazine (06/2025), taking action early can make a significant difference. Here's what family members need to know:
1. Timely Action: Recognize Early Symptoms and Establish Powers of Attorney
Dementia often starts subtly - memory loss, confusion, or disorientation being common early signs. It's crucial for family members to address these changes legally, starting with a power of attorney. This legal document grants a trusted individual the authority to handle financial and legal matters when the person with dementia is no longer able to do so.
2. Contracts: What is Still Valid?
As long as an individual with dementia understands the implications of a contract, they are considered legally competent. Thus, contracts remain valid. However, if legal competence is doubtful, previously signed contracts may be invalid. Relatives or legal guardians can then revoke these contracts and potentially recover the paid amounts.
Smaller, everyday transactions, like purchasing groceries or a newspaper, are considered trivial and remain permissible, even with diminished legal competence.
3. Identifying Unwanted Contracts
Unbeknownst to many affected individuals, they may inadvertently enter into costly subscriptions or purchase contracts, often through phone or online channels. Relatives can intervene in these cases. Within 14 days, there is often a right of withdrawal, especially for door-to-door sales and online orders. If the withdrawal period has passed, the legal incapacity of the affected person might help contest the contracts. A medical certificate can support this.
Regularly checking bank statements and mail and never disclosing account details can prevent unwanted debits.
For more information, check out Everything Settled Already: Tips for Power of Attorney or visit your local Legal Aid or Consumer Center.
[1] Understanding legal capacity and consent[2] Family support and advocacy in dementia care[3] Navigating complex legal processes with dementia[4] Guardianship and dementia[5] Cases of autonomy vs. protection in dementia care
- In the context of navigating dementia, family members should consider enrolling in vocational training programs to better understand mental-health issues, health-and-wellness, and community policy, which would aid them in making informed decisions for their affected loved ones.
- As part of the overall well-being of a person with dementia, family members should encourage participation in science-related activities, such as scientific research or lectures, as these can stimulate cognitive function and strengthen mental health.
