Limits to Court-Ordered Capacity Assessments

Estate planning can be a complex process, especially when a loved one is facing incapacity. One of the most challenging issues in estate planning is determining whether an individual has the mental capacity to make decisions about their own assets and care. In some cases, family members may seek court-ordered capacity assessments to determine whether their loved one can manage their affairs. This post describes a recent decision by the British Columbia Court of Appeal could limit the use of these assessments.

What are Capacity Assessments?

Capacity assessments are typically conducted by healthcare professionals and are used to determine an individual’s ability to make decisions. As seniors reach late stages of their life and their mental capacity diminishes, family members may seek a court-ordered assessment to determine whether someone still has the legal capacity to make their own decisions or whether a power of attorney should be in charge.

A recent decision by the British Columbia Court of Appeal, however, has placed limits on the use of court-ordered capacity assessments in estate planning.

Details of the B.C. Court of Appeal Decision

The B.C. Court of Appeal decision, known as Estate of Eileen Daisy Walton, involved a dispute over the estate of a woman who had been diagnosed with Alzheimer’s disease. The woman’s daughter had sought a court-ordered capacity assessment to determine whether her mother was capable of making decisions about her estate. However, the court denied the request, stating that capacity assessments should only be ordered in exceptional circumstances.

The court explained that court-ordered capacity assessments are a significant intrusion on an individual’s autonomy and privacy. Therefore, they should only be ordered when there is clear evidence that the individual’s capacity is in doubt and the assessment is necessary to protect their interests.

Implications for Estate Planning

The decision by the B.C. Court of Appeal could have significant implications for estate planning in Canada. Family members who wish to seek court-ordered capacity assessments will now need to provide clear evidence that the assessment is necessary to protect their loved one’s interests.

This decision highlights the importance of careful planning when it comes to estate planning and incapacity issues. Specifically, the recent case makes clear how important it is to make estate plans with clear documentation that is communicated to everyone concerned before questions about capacity arise.

Updating your Will

Updating your will, powers of attorney, and estate plans may be a cumbersome and uncomfortable process, but it is crucial for all Canadians. Business owners and affluent investors, in particular, must prioritize estate planning to secure their legacy. However, even if you are not wealthy, keeping an up-to-date will can spare your loved ones from the burden of additional time, stress, and expenses after your passing.

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