how to determine mental competency with a durable power of attorney

by Prof. Juliet Brekke 5 min read

But how exactly is mental competence determined? There are a few options for determining this that you may write into the Power of Attorney (for example, you may indicate that a specific physician must make the determination, or that two or more physicians must agree on your competency), but the professional opinion of a physician is required.

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What is a durable power of attorney for mental illness?

Mental Illness Power of Attorney. Some people consider durable powers of attorney for finances and health care essential documents for anyone doing serious estate planning because once a person becomes mentally incompetent, she can no longer make a power of attorney. In that case, the court must appoint a guardian,...

How do I get power of attorney for a mentally incompetent person?

If the person has a mental illness that makes her mentally incompetent in phases, work with her doctor to find a time when she is competent. At that point, discuss a power of attorney with her to see if she is interested. If so, be sure that the language of the document reflects her intent and that she signs it as state law requires.

Do you have to be competent to sign a durable power of attorney?

To create and sign a Durable Power of Attorney (DPOA), you must be “competent,” also referred to as “of sound mind.” That means you must have the mental capacity to understand the benefits, risks and effect of signing the document. Understanding the meaning and effect of the document before signing is crucial.

How do I determine my competency for a power of attorney?

There are a few options for determining this that you may write into the Power of Attorney (for example, you may indicate that a specific physician must make the determination, or that two or more physicians must agree on your competency), but the professional opinion of a physician is required.

How do you determine if someone is competent?

To be considered competent, individuals need to be able to:Comprehend information that is presented to them.Understand the importance of such information.Make sound decisions among provided choices.Understand the potential impact of their decisions.

What is mentally competent?

Mental competency refers to a person's ability to make rational decisions and express themselves.

What does capacity mean in power of attorney?

In order to execute a durable power of attorney, a client has to have contractual capacity. Contractual capacity means that the person has the ability to understand the nature and effect of the act and the business being transacted.

What is a letter of competency?

A letter of competency is a statement from a physician certifying that a person is capable of making informed decisions about their about their health care, finances and estate.

Who determines mental competency?

Judges make final decisions about competency, sometimes after input from psychiatrists and psychologists, or other physicians. Court opinions about competency should generally be left to psychiatrists with specific training in forensic psychiatry, except for competency to make health care decisions.

What are the 3 tests for mental capacity to make a will?

The High Court's conclusionThe nature of entering into the Will and its effects.Any claims to which he ought to give effect (be aware of the people for whom he would usually be expected to provide for).The extent of the property of which he was disposing (an understanding of the assets he owns)

What three decisions Cannot be made by a legal power of attorney?

You cannot give an attorney the power to: act in a way or make a decision that you cannot normally do yourself – for example, anything outside the law. consent to a deprivation of liberty being imposed on you, without a court order.

Who can override a power of attorney?

principalA power of attorney (POA) is a legal contract that gives a person (agent) the ability to act on behalf of someone (principal) and make decisions for them. Short answer: The principal who is still of sound mind can always override a power of attorney.

How do you assess capacity for a will?

The legal test for testamentary capacity is set out in the seminal case of Banks v Goodfellow [1870]. One element of the test is that the testator must not suffer with any 'insane delusions' or 'disorder of the mind' which affects the dispositions they wish to include in their will.

What a letter of competency should include?

A letter of competency should include basic identifying information (name, date of birth) as well as a statement of how long the doctor has known the individual, a statement testifying to their ability or inability to make independent decisions regarding any estate documents they are changing, any relevant diagnosis ...

How do you write competencies examples?

Competency statements are best expressed in terms of visible behaviours and often begin with an action verb (see the ACTION VERB LIST). Don't be vague—statements like “I'm experienced in sales”, “I wrote reports”, “I provided customer service”, or “I was responsible for handling complaints” could be used by anyone.

How do you write a letter of capacity?

The letter from the doctor attesting to the mental capacity of their patient should be made on their letterhead and include:The patient's name, date of birth, the date in which their relationship with the patient began.A statement testifying to the ability or inability of the patient to make decisions.More items...•

What is considered mentally incompetent?

In legal terms, the Infirm Persons Act defines a mentally incompetent person as someone whose mind is affected either from birth, disease, injury or by a disorder to such a degree that they require care, supervision, and control for their own protection, the protection of others, or the protection of their property.

What causes mental incompetence?

Lack of mental capacity can be caused by many things. It can be: permanent, where someone's ability to make decisions is always affected. This could be because of a stroke or brain injury, severe dementia or learning disability.

What does mentally competent to stand trial mean?

A person is mentally competent to stand trial if he or she is able to understand the character and consequences of the proceedings against him or her and is able properly to assist in his or her defense; (3) "Department" means the state department of behavioral healthcare, developmental disabilities and hospitals.

What are the 3 differences between competency and insanity?

Competency is determined by the judge. Insanity is determined by the jury. Timing of Determination. Competency is determined before the beginning of trial.

What is a power of attorney?

Powers of Attorney are meant to reflect your competent self exercising decisions for you while you are incompetent: if you were incompetent when you signed the document, then it is invalid.

Can an agent take responsibility for your concerns?

An Agent cannot assume responsibility of your concerns until you are determined mentally incompetent. In some cases, it may be necessary for a court to decide the matter of mental competency, according generally accepted standards.

Do you have to be mentally competent to sign a power of attorney?

Power of Attorney and Mental Competence. You must be mentally competent when you sign a Power of Attorney. In other words, you must understand that you are entitling another person to handle your legal and financial interests and what this means. If there is any doubt about your mental competence, it is in your best interest to have ...

What is a mental health power of attorney?

Mental Illness Power of Attorney. A power of attorney, or POA, is a legal document that a competent adult can use to appoint an agent to act on her behalf. The person making the document, called the principal, chooses the person who will be the agent – also called attorney-in-fact. The principal also determines the scope of the authority granted.

When does a power of attorney end?

Generally, a power of attorney terminates when either party dies or becomes mentally incompetent. But a durable power of attorney contains specific language that allows the authority to continue after the principal becomes mentally incompetent. Some people consider durable powers of attorney for finances and health care essential documents ...

What is a psychiatric advance directive?

A competent person may also prepare a psychiatric advance directive, which is a document that appoints someone as the decision-maker in the event the person becomes mentally incompetent in the future due to mental illness.

Can a person with mental illness write a power of attorney?

Most persons suffering from a mental illness are still competent to write a power of attorney. If you question their ability, work with the person's doctor to determine whether and when she is mentally competent. You'll need to explain the document to her and arrange for her to sign it while she is competent.

Do mentally ill people know they are violent?

The mentally ill do not always know they are being violent and this can be the only way to establish that the individual has a mental illness if they are not cooperative.

Can a person with bipolar disorder have a power of attorney?

Many people struggle with depression, bipolar disorder and other mental issues, yet they are successful in keeping the disease in check with medication, and most are not legally incompetent. If the person behaves rationally and seems capable of making everyday decisions, she is probably competent to create a power of attorney.

Is a power of attorney considered mentally incompetent?

Power of Attorney and Mental Illness. Not every person with a mental illness is mentally incompetent. This is a stereotype that is simply untrue. Mental disorders and illnesses are very common and, while sometimes limiting the person's scope or happiness, they usually do not limit their mental competency. Depression is a good example.

What is durable power of attorney?

A durable power of attorney document allows the agent to make decisions either right away, or when the principal is “incapacitated.”. In the documents I’ve reviewed, the principal usually has to specify whether the agent has authority immediately, or whether the authority should “spring” into action upon incapacity.

What is a durable POA?

This means a general durable POA is a good way to plan for the possibility that an aging adult could become mentally impaired. Most power of attorney documents will not include safeguards to reduce the risk of financial exploitation, unless you specifically request them.

How can older adults reduce the chance of being inappropriately deemed incapacitated?

Older adults can reduce the chance of being inappropriately deemed “incapacitated” by making sure their general durable power of attorney includes language specifying how incapacity is to be determined. I would recommend language that helps the agent distinguish between temporary and permanent incapacity.

What is a POA agent?

Especially if the powers granted are broad — which they often are — a POA can enable the designated person (known as the “agent”) to step in and assist with finances, housing, safety, and anything else covered by the POA . A durable POA allows an agent to take action once the older person is “incapacitated.”.

Why do power of attorney documents have no oversight?

Historically, most power of attorney documents have allowed the agent to have a lot of power to manage the principal’s finances and affairs, while requiring virtually no oversight. Most agents dutifully do their best on behalf of an incapacitated older person.

Do you need a durable power of attorney if you are incapacitated?

A durable power of attorney remains in effect even if the principal is incapacitated, so older adults should always use durable POAs when planning ahead for the future. (Remember: hope for the best, plan for the likely & quite possible.)

Can a POA be permanently impaired?

Capacity can be temporarily impaired or permanently impaired. POA forms usually don’t address this. It would be unfortunate for a person to permanently lose their rights, if later their capacity might improve. Most doctors are not trained to evaluate long-term capacity in older adults.

What is a durable power of attorney?

A durable power of attorney is a legal document prepared by a competent adult -- the "principal" -- who wants to name a trusted person to act for her when she cannot or does not wish to act for herself.

When do powers of attorney become effective?

Some powers of attorney, termed springing, only become effective when the principal is incapacitated. Since no clear test exists to determine incapacity, springing powers of attorney are increasingly out of favor.

Is a power of attorney valid for a principal?

While a normal power of attorney is only valid as long as the principal is mentally competent, a durable power of attorney continues in force after the principal becomes mentally incapaci tated, and a springing power of attorney becomes effective only if the principal becomes mentally incompetent.

Do banks have powers of attorney?

Banks and financial institutions don't like springing powers of attorney, since a determination of competence can be difficult and the subject of extended litigation. Recognizing these issues, some states discourage springing powers of attorney and they are now forbidden under the Uniform Power of Attorney Act, enacted by 13 states and introduced in several more as of 2013. The states enacting the uniform act do not invalidate those springing powers of attorney made before enactment; instead, the legislation makes them effective when the principal's primary care physician signs an affidavit stating that the principal lacks capacity to manage his property.

Is there a standard test for competency?

No standard test for competency exists. Sometimes language in the power of attorney specifies the test; for example, the document may provide that a springing power of attorney will be effective at such time as a determination of the principal's incapacity is made by the principal's doctor. Otherwise, in disputed matters, ...

Can a power of attorney be used to make financial decisions?

Most powers of attorney confer authority to make financial decisions or medical care decisions. Some do both, although the practice is forbidden in some states and the American Bar Association recommends against it. While a normal power of attorney is only valid as long as the principal is mentally competent, a durable power of attorney continues in force after the principal becomes mentally incapacitated, and a springing power of attorney becomes effective only if the principal becomes mentally incompetent.

Standards Determining Capacity for PA Power of Attorneys

Estate Planning and Elder Law practitioners in Pennsylvania routinely recommend to clients that they execute a Durable General Power of Attorney naming an agent to be empowered to act on their behalf as an essential estate planning instrument.

John Trainer

John’s concentrates his legal practice in estate planning, estate administration and elder law for individual and corporate clients in Bucks and adjacent counties. His practice areas include Estate Planning, Estate Administration and Elder Law.