When you’re dealing with an extensive amount of wealth, you want to make sure that your estate plan is detailed, thorough, and legally enforceable. If you leave gaps in your estate plan, or you make a devastating error, then your hard-earned assets could end up in the hands of someone you never intended to inherit from you. Your estate could also be subjected to costly estate taxes.
To create an effective estate plan, though, you need to have the requisite mental capacity. This is an issue that could be drawn into question when the person who is creating the estate plan suffers from a mental health condition like Alzheimer’s or dementia.
Can you create a valid estate plan despite suffering from Alzheimer’s or dementia?
Yes. What’s important is that you possess mental capacity at the time that your estate planning documents are created and signed. To demonstrate that you had mental clarity at that time, you must be able to show the following:
- That you understood the nature and extent of your assets.
- That you understood to whom you were leaving those assets.
- That you understood how your estate plan disposed of your assets.
To support a showing that you possessed the requisite mental capacity at that time, you should consider doing the following:
- Write down your reasoning for creating your estate plan the way that you did.
- Get a medical opinion as to your mental clarity shortly before signing off on estate plan documentation.
- Shortly before signing estate planning documents, give a gift to someone you don’t want to inherit from your estate plan, as acceptance of the gift will constitute acknowledgement that you have proper mental capacity and thus reduce the risk of a challenge to your estate.
Are you dealing with an estate plan issue?
If so, then you need a command of the law on your side. Only then can you develop a legal strategy that protects your interests. If you need assistance with that, then please don’t hesitate to seek out any support that you may need.