People will often make updates to their estate plan at various times in their life. This can significantly alter many decisions, such as how assets are passed on to beneficiaries. Updates are often made when someone’s assets change, when family relationships change – such as through marriage or divorce – or when their health and medical needs change.
One key detail at this time is that a person needs to have testamentary capacity to be able to update their plan. This generally just means that they have the mental capacity to understand what property they own, what beneficiaries they have and the impact of altering their estate plan. They should understand the basics of how a will or an advance directive will work, for example, and cognitively grasp the impact of these changes on their family.
This can sometimes lead to an estate dispute
Issues with testamentary capacity do sometimes lead to disputes as the estate goes through probate.
For example, a person may update their estate plan near the end of their life, shifting assets away from certain beneficiaries and giving them to others. But those beneficiaries may claim that the individual lacked the testamentary capacity to make those updates. Perhaps they were suffering from a disorder like Alzheimer’s or dementia. They did not understand the changes they were making, the beneficiaries will claim, and so the updates do not reflect their true wishes.
Navigating this type of dispute can be complex and often involves legal paperwork, medical documentation, financial records and much more. It is important for those going through this process to know exactly what legal options they have at this time.
