When someone creates an estate plan, they’re outlining their wishes for what will happen when they pass away. They’re also dictating what they want to happen if they become incapacitated. Because of the seriousness of these matters, it’s critical that they fully understand the implications of their decisions.
The legal term for being able to understand and make these choices is “testamentary capacity,” which is a fancy term for being mentally competent. It’s critical that anyone who’s creating an estate plan understands this, but it’s also important for those dealing with a loved one’s final wishes to understand.
Why is testamentary capacity important?
To be competent enough to create an estate plan, a person generally needs to understand three basic things. If even one of these isn’t present, the person may be considered mentally incompetent.
First, they should know the nature and extent of their property. This means they’re aware of what assets they own, like real estate, bank accounts or personal belongings.
Second, they must understand who their family members or natural heirs are, even if they plan to leave their estate to someone else. They have to understand the implications of leaving someone out of the will.
Third, they need to grasp how they’re distributing their property and the effect of signing legal documents to carry out their wishes. They have to be able to clearly relay who they wish to have which assets.
If a person creates or changes an estate plan without being mentally competent, the estate plan may not be legally valid. This can lead to a probate dispute, which is a serious matter. Working with someone who understands how to prove testamentary capacity may be beneficial in these cases.
