Introduction
Mental capacity is an important concept in Singapore law, especially in matters involving wills, powers of attorney and decisions about a person’s affairs. In simple terms, mental capacity refers to a person’s ability to make decisions for themselves. The law recognises that a person must be able to understand, weigh and retain information, before making important decisions. Questions about mental capacity often arise in disputes over wills or when family members need to manage the affairs of someone who is, or is suspected to no longer be able to make decisions independently.
What does Mental Capacity Mean?
Under Singapore law, a person has mental capacity if they are able to understand information relevant to a decision, retain that information, weigh it as part of the decision-making process, make the decision and communicate it. This does not mean a person must make a “good” decision. A person can still have mental capacity even if others disagree with their choice.
How is Mental Capacity Assessed?
Mental capacity is assessed based on the specific decision that needs to be made. A person may have the capacity to make some decisions, but not others. For example, a person may be able to manage daily expenses but not understand complex financial arrangements. The assessment focuses on whether the person can understand and process the relevant information at the time the decision is made.
Mental Capacity and Wills
Mental capacity is especially important when a person makes a will. If a person does not have the required mental capacity at the time the will is made, the will may be challenged and declared invalid. Disputes about mental capacity often arise when there are concerns about conditions such as dementia or where the terms of the will are unusual.
Mental Capacity and Lasting Power of Attorney (LPA)
Mental capacity is also relevant when a person makes a Lasting Power of Attorney (LPA). An LPA allows a person to appoint some (a deputy) to make decision(s) on their behalf if they lose mental capacity in the future; the LPA specifies what these decision(s) are. To create a valid LPA, the person must have mental capacity at the time it is made. Having one also obviates the need for family members or close persons from having to apply to court for an order of deputyship.
When Disputes Arise
Disputes about mental capacity arise when a person is live and family members disagree about decision-making, or that person passes away. In such cases, the court may consider medical evidence and the surrounding circumstances to determine whether the person had mental capacity.
Conclusion
Mental capacity is a key legal concept that affects many areas of life, and even after death. Understanding how it is assessed can help individuals and families better navigate legal issues involving decision-making and estate planning.