Why power of attorney won't protect you after cognitive decline

South Africa is confronting a growing crisis: dementia, Alzheimer's disease and stroke-related cognitive decline are rising sharply, exposing gaps in public awareness and leaving families financially unprepared for the long-term care that follows, according to Ricardo Teixeira, managing director of BDO Wealth.

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He says Alzheimer's South Africa estimates that more than 190,000 South Africans are currently living with dementia a figure expected to climb steeply as the population ages. This mirrors global trends, where someone develops dementia every three seconds, with the fastest growth occurring in developing regions.

According to Teixeira, Stroke remains a major driver of cognitive decline locally. Research published in BMC Public Health shows that nearly 60% of stroke survivors in sub-Saharan Africa experience cognitive impairment, affecting memory, reasoning and decision-making abilities. “We regularly see people trying to do the right thing for a loved one, only to discover that the tools they believed would protect them simply don’t apply when cognitive decline sets in. Without preparation, families can find themselves locked out of their own financial affairs at the very moment they need access the most,” he says.

A common misconception is that a general Power of Attorney (POA) continues to apply after the principal becomes mentally incapacitated. It does not, he says.