Capacity Notes for Legal 271 - February 2022

Definition: Capacity refers to the legal ability to enter into contracts and make a Will.
Presumption: Capacity is generally presumed; individuals are considered to have capacity until proven otherwise.
Age: Legal capacity is granted at the age of 18 but can be lost due to various conditions.

Aging: Conditions like Alzheimer's, dementia, and stroke can lead to diminished capacity.
Mental Illness: Disorders such as schizophrenia or bipolar disorder can impair capacity.
Intellectual Disabilities: Conditions like Down syndrome or Fetal Alcohol Spectrum Disorder (FASD) can affect capacity.
Nature of Capacity: Capacity is not absolute; a person may have capacity in one area (e.g., testamentary) and lack it in another (e.g., financial management).

Testamentary Capacity: The ability to make a valid Will and understand its implications.
Financial Capacity: Ability to manage financial affairs (related to Power of Attorney).
Health Care Capacity: Ability to make informed health care decisions (related to a Personal Directive).

Case Summary: The testator had delusions but was able to manage his estate, raising questions about his mental state when making a Will.
Court Decision: The court upheld the new Will, emphasizing the importance of understanding the nature and effects of the act of making a Will.

A testator must understand:
- The nature of their property (types of assets).
- The extent of their property (value of assets).
- The natural objects of their bounty (who they care about regarding inheritance).
- The testamentary provisions they are making (awareness of the act of making a Will).

Dew v. Clark (1826): A testator disinherited his daughter due to a delusion. The court distinguished between insanity and partial insanity.
Incidence of Incapacity:
- As per Wasylynuk v. Bouma (2018), mere ability to respond rationally isn’t enough for capacity.
- The testator's memory and rational capability at the time of making the Will are critical.
Mental Illness and Capacity: A mental illness does not automatically negate testamentary capacity unless it significantly interferes with decision-making.
Suspicious Circumstances: Significant changes in beneficiary designations without clear explanation can lead to inquiries about capacity and intent.

Power of Attorney: Considered when an individual can no longer manage their affairs. Capacity is determined via assessments that often involve medical professionals.
Personal Directive: Capacity standards are also applied here; it is typically one of the last capacities to diminish before testamentary capacity.

Capacity is nuanced; the validity of a Will may depend on the testator's mental state at the time of its creation, particularly when delusions are involved.
Example scenarios illustrate the challenges in determining capacity and highlight vital concepts like understanding, intent, and rationality at the time of making a Will.

Discussion on Powers of Attorney and Personal Directives will be included in the next class, reinforcing the understanding of legal capacity in various contexts.