Understanding Mental Capacity Requirements for Estate Planning
You pass away. But not everyone can legally create a valid estate plan. One of the most important legal requirements is mental capacity—the ability to understand and make informed decisions about your estate.
In California, having mental capacity means a person is aware of what they own, understands who their beneficiaries are, and knows what it means to create a will or trust. If there are doubts about whether someone had the capacity to make these decisions, family members may contest the estate plan, leading to legal disputes that can be difficult and time-consuming to resolve. An estate planning attorney can help ensure that an estate plan is legally sound and less vulnerable to challenges.
How Mental Capacity Is Evaluated in Estate Planning
Mental capacity refers to a person’s ability to comprehend the decisions they are making and how those decisions affect their assets and beneficiaries. The law sets different standards for mental capacity depending on the type of document being created. The standard for signing a simple will is lower than the standard for establishing a complex trust or financial power of attorney.
If someone lacks the required mental capacity due to cognitive decline, dementia, orother conditions, their estate plan may not be legally valid. That’s why it’s important to understand how the law defines mental capacity and what happens when it’s challenged.
Mental Capacity for Creating a Will
The ability to create a valid will is known as testamentary capacity, which is governed by California Probate Code § 6100.5. The law states that a person must be able to:
- Understand that they are making a will and what it does.
- Know what assets they own and their approximate value.
- Recognize who their heirs or beneficiaries are.
- Be free from delusions or hallucinations that would impact their decisions.
The legal threshold for making a will is relatively low. A person does not need to be in perfect mental health to execute a valid will. Someone with mild dementia, for example, may still have the capacity to create a will as long as they meet these requirements at the time they sign it. However, if they lack this basic understanding, the will could be challenged and possibly invalidated in court.
Mental Capacity for Creating a Trust or Power of Attorney
Generally, actions such as creating a trust, signing a power of attorney, or making complex financial decisions require a higher level of mental capacity. Unlike a will, these documents often involve managing assets, making financial plans, and giving authority to others to act on one’s behalf. California law applies a contractual capacity standard for these documents, as outlined in California Civil Code § 39. A person must:
- Understand the nature and consequences of their decisions.
- Be able to communicate their wishes rationally.
This means they must grasp the financial and legal implications of their actions. If someone is signing over power of attorney or creating a trust, they need to understand what those documents do and how they affect their estate. If they are unable to process these concepts due to cognitive decline, their documents may not hold up in court.
How Mental Capacity Disputes Arise in Estate Planning
Legal challenges often come up after a person has passed away, when family members question whether they were mentally competent when they signed their will or trust. These disputes can be complicated because the person who created the estate plan is no longer around to explain their reasoning.
In estate litigation cases, the burden of proving that someone lacked capacity falls on the person challenging the document. Courts rely on medical records, witness testimony, and expert evaluations to determine whether the person had the mental ability to make their estate planning decisions.
Medical Records and Mental Capacity
Medical records play a significant role in capacity disputes. If a person was diagnosed with Alzheimer’s, dementia, or another cognitive disorder when they signed their will or trust, this can raise questions about their ability to make informed decisions. However, simply having a diagnosis is not enough to invalidate an estate plan. Courts look at whether the person had lucid moments or whether their condition had progressed to the point where they could no longer understand what they were doing.
Witness Testimony in Capacity Challenges
Attorneys, financial advisors, caregivers, and family members who were present when the estate plan was created may be asked to testify about the person’s mental state. If an attorney who drafted the document confirms that the person appeared clear-minded and understood their decisions, that testimony can help support the validity of the will or trust.
On the other hand, if caregivers or medical professionals state that the person was frequently confused, forgetful, or unaware of their surroundings, this could suggest that they lacked the capacity to make legal decisions.
Expert Evaluations and Court Review
In some cases, medical experts such as neurologists or geriatric specialists are brought in to analyze cognitive assessments, behavior patterns, and medical history. Courts use this information to decide whether the person likely had the required level of mental function at the time they signed their estate plan.
The Link Between Mental Capacity and Undue Influence
Capacity disputes often go hand in hand with undue influence claims. A person may have been mentally competent enough to create an estate plan, but they may have been manipulated by someone who exerted control over their decisions.
Undue influence occurs when a caregiver, family member, or close associate pressures someone into changing their will or trust in a way that benefits them unfairly. Courts consider factors such as:
- Whether the person was isolated from other family members.
- Whether the influencer played an active role in arranging the estate plan.
- Whether the estate plan made drastic, unexpected changes that benefited one person over others.
- Whether the person relied on the influencer for daily care or financial support.
People with cognitive impairments are particularly vulnerable to undue influence. If they trusted the wrong person and were pressured into changing their estate plan, their true intentions might not be reflected in their will or trust.
How to Protect an Estate Plan from Capacity Challenges
Taking steps to document mental capacity can reduce the risk of disputes and ensure that an estate plan holds up in court. One of the best ways to do this is to work with an experienced estate planning attorney who follows procedures that confirm a person’s mental clarity.
Some precautions that can strengthen an estate plan include:
- Conducting cognitive evaluations at the time of signing.
- Having multiple witnesses present when estate documents are executed.
- Keeping video or written records where the person clearly states their wishes.
- Ensuring that the person meets privately with their attorney, without pressure from family members or caregivers.
For families concerned about a loved one’s mental state and ability to make decisions, addressing these issues before disputes arise can prevent lengthy court battles. If there are doubts about an estate plan’s validity, taking early legal action may help protect the intended distribution of assets.
At Trust Law Partners, LLP, we handle estate disputes involving mental capacity, undue influence, and trust litigation. Whether you need help defending a valid estate plan or challenging one that was created under questionable circumstances, we can provide the legal expertise needed to navigate these complex cases.
Call Trust Law Partners, LLP at 626-956-3500 for a free consultation today.
