I'm not going to be much help on the 'should we tell her' question as my mum was diagnosed at a memory clinic and she and I were told together that she has Alzheimer's and Vascular Dementia - so we've never been in the situation of us knowing and her not.
But, there are a few things you should do or think about which may influence what you decide to do.
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Do you have power of attorney? You should get it. I'm in the process of getting an attendance allowance for my mum. They've just called me regarding the form. Mum doesn't wander yet but does get muddled with money - handing me 20p instead of £20 for something for example. The woman on the phone asked if I had power of attorney as it sounded like I should get it sorted out quite soon. I confirmed that I had it already and had put it in place as she was diagnosed. If your mum is wandering it sounds like the Alzheimer's is progressing, like my mum's. One of the problems, if you don't get power of attorney, is that things like decisions about her finances or her healthcare are taken out of your hands if she can't manage. I know when we set up POA mum had to see her GP to ensure she understood what she was signing and why. I think, and I am sure someone will correct me as I am not 100% sure, that you can get a POA done by a solicitor so she doesn't have to see a GP but I don't know if your mum needs to still be involved in that discussion. If she does, she will figure out it's Alzheimer's related I guess.
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Mum has had a couple of assessments to get extra help or equipment. She was asked during that if she knew what she had but they didn't tell her - just confirmed it. If your mum does have assessments to be booked asked them to call you to arrange them. You can be there and, I would think, you could explain to them that your mum doesn't know what's wrong with her. Ultimately, all the assessment is doing is deciding if she needs additional support or equipment. The outcome doesn't change whether she knows her diagnosis or not.
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It is hard to keep Alzheimer's a secret sometimes. Mum tends to forget things, get muddled at appointments etc., It is much easier for me to step in and explain, quietly, that she does have Alzheimer's. Attitudes towards her change from 'oh for goodness sake, dopey woman' to 'not a problem. Let's try that again' once I have explained. Mum explains to people that she 'has that head thing. That makes you forget stuff' - cos she can't remember the name! Bless her!
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We've also got a card which mum keeps in her purse. It was from the occupational therapy team and says 'My name is ....I have Alzheimer's and I need some help' and has my phone number on it. Hopefully, if she gets lost or confused someone will either see it or she'll hand it to them.
As I say, it is hard to know what to do regarding your mum. My mum was 'pleased' to get the diagnosis as she knew something was wrong. As the illness has progressed she seems quite settled with it. It's like the illness has taken away the fear, which is something I noticed with my MIL when she got it. She feared it for a long time as my FIL had it and she saw him go downhill. When she was diagnosed she was petrified. A few months on and she didn't seem worried by it at all
Things I wished I known earlier. Well, we've been lucky. I had an Admiral's Nurse who helped me get a disabled badge for mum. Handy for shopping when you may not be able to walk full distance across a car park. My Admiral's nurse explained that for dementia patients just walking and facing all the noise etc when they are out and about can make their head ache. They can be exhausted just by the effort of concentrating on something, which for us is so simple, like walking. If they are prone to wandering what do you do? Go and get the car - when they could wander off or try to cajole them into walking just a few more steps when they are so tired. Imagine a full grown adult sized toddler who has had enough. That's what some dementia patients can be like when they are tired. So a blue badge is a saviour for me.
I was also told recently I could apply for an attendance allowance. Just to get help with anything mum needs - like checking on her each day, keeping up with cleaning, cooking, shopping. It also opens up other benefits and 'should' make it easier to get additional help if she needs it as she has already been assessed.
If you call your local adult mental health team you can arrange an assessment as I've mentioned. They can advise you about aids (like my mum may need a medical box on a timer at some point as she is beginning to forget when her tablets are due) or getting a clock with a calendar to help her keep track of days. If your mum is wandering you really should try to get her an assessment as quickly as possible for her safety sake.
Using a day centre is a god send. Being sociable helps Alzheimer's. My mum has a communal lounge where she meets her friends in the sheltered housing scheme she lives in and she goes to the day centre each week. I notice a huge difference when she comes back from the day centre compared to her being alone during the day. She has gossip, wants to tell me things, makes things and is excited about things. When she was just sitting in her flat at the start of the diagnosis she seemed less vibrant if that makes sense.
She has good days when she is sparking and bad days when she makes me wonder if it is me getting muddled. That used to upset me. Now we laugh about her muddledness and accept that is the new mum. It is heartbreaking sometimes and funny at other times. The things she comes out with can make us laugh or cry for the mum she left behind somewhere - but she has changed and will go on changing and we just have to adapt. The old mum won't be back so we just try to enjoy the new one(s) as they emerge.
The Alzheimer's society forum is a great board. I have had great advice from people whose parents/partners are more advanced than mum and, even by reading some of the threads that don't really concern me (yet) I have learned a lot. Worth having a look at.
Good luck. It can feel like a lonely journey sometimes but you'd be surprised how many people are affected by dementia. Since I have spoken about it to people, I now know of 4 friends/acquaintances who have someone in the family with it.
Sorry if this is a bit gabbled and very long! It's hard to know where to start. But I suppose my ultimate bit of advice is, you know your mum. Your brother is right in that it will get harder to keep the diagnosis from her as she progresses but we've played down Alzheimer's with mum. As far as she is concerned it's something that confuses her or makes her forgetful. It's what she can cope with so we leave it at that rather than talk about what the future may hold for her.