Ireland's population is getting older and living longer. According to the Alzheimer Society of Ireland (ASI) the chances of developing Alzheimer's or other forms of dementia increase greatly with age. It's estimated that 6 per cent of over 65s and 20 per cent of over 80s have Alzheimer's disease, says ASI public relations officer, Ms Barbara Scully.

"There is a genetic element but only the rarer forms are hereditary. The main risk factor is age," she said. However, people in their 40s and 50s may suffer from early onset dementia.

Individuals affected by this progressive, degenerative disease of the brain require a high level of care over a long period of time. From the time symptoms first appear, the course of the disease averages eight years but has been known to last as long as 25 years. Early symptoms include short-term memory loss, personality changes, disorientation, problems with speech, the ability to understand words and impaired performance of everyday skills.

"They may lose their car keys but when they find them they forget which key opens which lock," Ms Scully says. As the disease progresses, the symptoms intensify and sufferers must receive around-the-clock care.

For families of Alzheimer's disease sufferers this means a high level of financial as well as emotional and physical commitment.

Legislative changes may make caring for relatives with these conditions less of a burden says Standard Life's assistant general manager in the pensions and legal department, Ms Maria O'Connell.

"People sometimes contact us and say `My mother has Alzheimer's and we need the policy money to support her'," she said. This is an increasing problem for life assurers but also for banks and other financial institutions. Before releasing life policy payments, these organisations require the policyholder to sign a discharge releasing them from responsibility if the funds are distributed improperly. If a person with Alzheimer's disease or senile dementia signs these documents they are not legally binding. For this reason it's extremely difficult to get a proper discharge, she said.

Although Ms O'Connell has been in the life insurance industry for 10 years, this has only become an issue in the past four years. Standard Life recently found a way around the difficulty for some of their customers. "We're asking the affected person's next of kin to sign a declaration that if the individual recovers, they won't ask for the funds again."

This and other problems relating to dementia may be solved in advance if more people knew about changes made in legislation a number of years ago, says Ms O'Connell.

Before 1996, a person's power of attorney was revoked automatically in the event that they became mentally incapable. "The Powers of Attorney Act, 1996, changed this with the introduction of what is termed `Enduring Powers of Attorney'," says Ms O'Connell.

This is a power of attorney enabling an individual or "Donor" to designate a person to manage their finances, property and affairs in the event they become mentally incapacitated. When performing these duties, the designated person must comply with the conditions and restrictions set out in the Act.

A number of safeguards are provided within the Act, says Ms O'Connell. There must be a statement by a doctor that the "Donor" had the mental capacity at the time the document was executed to understand the effect of creating such a power. A statement is also required from the solicitor drawing up the document saying that the document was not executed as a result of fraud or undue influence.

When the "Donor" is obviously becoming mentally incapacitated, the attorney must register the enduring power in the High Court. The power only comes into force when all these conditions have been met, Ms O'Connell says.

Age Action Ireland says setting up an enduring power of attorney is a good idea. "Used properly, there is little room for abuse," said spokesman Mr Tom McGuirke.

One of the best aspects of creating an enduring power of attorney for the "Donor" is that it allows them to make personal care decisions for themselves before they become mentally incapable. Ms O'Connell says they may specify where they want to live or not live, who they should see or not see and decide on their diet, dress, who is to look after their personal papers and who should be consulted in certain decisions.

The enduring power provides peace of mind and protection for the elderly. "I think it would be quite consoling to an older person if they're alone," says Ms O'Connell.

She puts the cost of drawing up an enduring power of attorney on par with making a will. If you go to a solicitor it should not be expensive. The cost of setting up an enduring power of attorney depends on the person's individual circumstances and the amount of work required by the solicitor. In any case, the price should range between £200 and £350.

There is a catch. An enduring power of attorney may only be set up while a person is mentally competent.

Early diagnosis is vitally important says ASI's Ms Scully. Unfortunately, there is a lack of awareness among GPs and the general public. Early medical intervention can help the affected person's quality of life. It also allows the family to advise the individual's solicitor to activate the enduring power of attorney. "Access to the assets will be very important in later stages of the disease," says Ms Scully.

At present there are 33,000 people in Ireland with dementia, 60 per cent could have Alzheimer's disease specifically.

"The numbers are increasing and we feel there will be quite an increase over the next 20-30 years. In 10 years we think we'll have 7,000 more or up to 40,000 people with dementia," she said.

The numbers suggest that an enduring power of attorney should be an integral part of everyone's estate planning in later years.