Incapacity in Nevada

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INCAPACITY in NEVADA
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Incapacity has many different meanings
depending on the legal issue being discussed
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During legal proceedings, the term usually
refers to an individuals ability to comprehend
the nature and consequences of the proceedings
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Capacity can also be used to describe whether
someone is qualified to enter into a binding
legal agreement
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In estate planning, the term capacity means the
ability to manage your own affairs and make
important decisions for yourself
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Circumstances in our lives, such as trauma or
illness, can lead to incapacity
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In some cases, incapacity is only temporary when
the condition causing it has been cured or
resolved
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Legal Incapacity
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Capacity is important in many legal contexts
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A person must be legally competent in order to
execute a contract, will or other legally binding
document
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Competency does not only refer to mental
capacity, but also age and maturity
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In the area of estate planning, legal capacity is
a necessity in order to validly execute various
estate planning documents
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Mental Incapacity
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Medical conditions, such as Alzheimers disease,
psychosis, and dementia, are known to lead to
incapacity
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• Also, age and senility often diminish a persons
  ability to make responsible decisions for
  themselves

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However, a determination of incapacity should
never be based solely on a diagnosis
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A medical condition does not presumptively
result in a lack of capacity
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Importance of determining incapacity
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Sometimes it is necessary to determine incapacity
in estate planning because certain instruments
only become effective when the person executing
the instrument has become incapacitated
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• The opposite is also true
• certain estate planning tools are
• no longer effective if the person is incapacitated

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Who makes the determination?
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Whenever a determination of capacity is made, it
must be done by A COURT
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In most cases, the court requests medical
opinions of the experts who examined the
individual in order to judge capacity
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In situations where there is no challenge to an
incapacity determination, the court can rely
solely on the medical records
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However, if family members contest the finding,
the court may request an independent
psychological analysis
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Can the finding be reversed?
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Since incapacity can be temporary, a finding of
incapacity can be reversed if the condition
causing the incapacity has been effectively
treated
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When it is demonstrated to the court that the
person has regained his or her capacity, the
determination can be reversed and decision-making
abilities reinstated
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Benefits of Incapacity Planning
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• The good news is, through incapacity planning,
  you can make choices now while you are capable of
  doing so

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That will ensure the person of your choice is
designated to make decisions for you when you
no longer can
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An incapacity planning attorney can help you
create the comprehensive plan that meets your
needs, while considering the possibility of
future incapacity, long term or terminal illness
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If you live in northern Nevada give us a call at
775-823-WILL to make an appointment
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Or visit our website www.wealth-counselors.com
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