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It means they probably should not live alone anymore. They will need help with managing meds and money. They should not be driving a car.
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Ideally, you should ask the doctor who told you this. I've noticed that these terms mean different things to different doctors. Most dementia are progressive that is, they get worse at varying rates. Some people get diagnosed with mild dementia and progress rapidly to severe, others wax and wane, good and bad days interspersed. Read as much as you can and ask lots of questions.
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