Financial planning and assistance

Tax information and benefits for people living with dementia.

Keep track of financial information

Collect important information and documents. Ensure a family member or your Enduring Power of Attorney knows where they are stored. This could include:

bank accounts and credit cards
loans and mortgages,
insurance policies (life, auto, home, disability)
income sources (pension plans and RRSPs)
investments
deeds for homes and businesses
any monthly expenses and the login information for the account
car registrations
prepaid funeral arrangements and/or cemetery plots
any appraisals for valuable items

Enduring Power of Attorney

A few things need to happen after someone is assigned as an attorney for property. (Someone who makes decisions regarding your finances and property): 

Banking: Take an original copy of the Enduring Power of Attorney (EPA) document to the bank and have it recorded on your account. This lets the EPA pay your bills and make changes to the account.

Please visit the bank to see if there are any other required procedures.

Bills and accounts: Have the Enduring Power of Attorney (EPA) document recorded on accounts you use often (power company, phone and cable, etc.) This allows a smoother transition when they need to make decisions.

Taxes: Attorneys must register their Enduring Power of Attorney with the Canada Revenue Agency. This can be done online or by calling the Canada Revenue Agency (800-959-8281). They will need the name, date of birth, address and Social Insurance Number of the person for whom the Enduring Power of Attorney will be enacted. 

Old Age Security (OAS) and Canada Pension Plan (CPP): Attorneys will need to submit a form by mail to Service Canada to access someone’s OAS or CPP. This form is called the Consent to Communicate Information to an Authorized Person form. Copies can be provided by your local Service Canada office, or you can download and print.

Claiming long-term care on income tax

Nursing homes

You can claim the whole amount you paid for care in a nursing home on your income tax. You will need to file form T2201 (Disability Tax Credit Certificate) on your taxes or have a written note from your doctor or nurse practitioner stating that you are not able to care for yourself on your own and must rely on others for care.

You can claim the disability amount or the expenses for a nursing home but not both. There are some scenarios in which you may be entitled to both, but you should contact an accountant for clarification.

Special care homes

You cannot claim the whole amount you paid for care in a special care home or the “rent” portion of what you paid in a retirement home on your income tax. But you can claim costs for care in these homes if you qualify for the Disability Tax Credit.

The special care home should give you a detailed receipt telling you where your money was allocated and what you can claim on your tax return.

For more information on claiming nursing home or special care home fees, visit Medical Expenses 2024.

Other tax benefits and credits

Disability tax credit

The Disability tax credit (DTC) helps reduce the income tax that people with physical or mental impairments, or their caregivers, may have to pay. You will need to have a medical practitioner certify the impairment. If your application is approved, you may claim the disability amount on your tax return. 

Visit canada.ca for more information on how to apply. 