Testamentary capacity is a gauge of the mental faculties of a testator when they create their will. A testator must be of competent mind, understanding, and memory in order to make a valid will. All testators are assumed to have testamentary capacity until it is proven that they do not.
Whether or not a client has testamentary capacity is not calculated via a legislated formula but derived from case law. It has been described as requiring time, situation, person, and task specific focus on a testator’s ability to remember, reflect, and reason.
Courts have been concerned with this issues for many, many years. The cases, starting from Banks v Goodfellow (1870) require a testator to understand:
- what it means to be making a will;
- the assets they have and are leaving to others;
- the obligation owed to those who could make a claim on the estate; and
- whether or not they are affected by a delusion that influences the disposal of their assets.
The Court determines testamentary capacity on the facts and circumstances of each case.
When taking instructions, it is prudent for lawyers to ascertain the client’s capacity and the possibility of undue influence by asking non-leading questions to determine the facts and circumstances of each case. The court suggests that where an elderly client is being cared for by someone or is residing in an aged care facility, it is prudent to ask both clients and their carers whether there is any reason to be concerned about capacity.