As hard as it may be to be accused of something you did not do, try not to become offended. Remember that the behavior is due to the way the disease is affecting your loved one's brain. Don't try to argue with your relative or convince him or her of your innocence. Instead, share a simple answer or response, such as, "I see that you're upset about your missing wallet, so I'll do my best to find it for you." Avoid giving wordy or complicated explanations.
Redirection to another activity can be very effective in these situations. It's also helpful to store "back-ups" of items that are frequently misplaced (e.g., baseball caps, purses).
Sources:
Behaviors: What causes dementia-related behavior like aggression, and how to respond. Alzheimer's Association. 2005. http://www.alz.org/national/documents/brochure_behaviors.pdf
Mace, N. L., & Rabins, P. V. (2006). The 36-hour day: A family guide to caring for people with Alzheimer's disease, other dementias, and memory loss in later life (4th ed.). Baltimore, MD: Johns Hopkins University Press.
