A person signing a will must have capacity to understand what they are signing. You cannot sign a will if you “lack capacity”. To demonstrate that you do have capacity, you must:
- Understand what a will is.
- Know what you own and its value.
- Be aware of any people such as family members who may have a claim on your estate
- Not have health conditions, physical or mental, that affect your decisions.
Eva died in 2021. In the case of Knox v Peacock, she made two wills, one in 2019 and one in 2020. Geoffrey, a solicitor, drafted Eva’s will in 2020. Isabella was Eva’s friend and carer. Eva moved into a retirement home in 2019. The 2020 will left Eva’s estate to the Sydney Opera House Trust. The 2019 will left Eva’s estate to Isabella. Isabella sued Geoffrey in the Supreme Court of NSW. Isabella claimed that Eva did not have the capacity in 2020 to make a will due to her health and medical condition. Isabella claimed the 2019 will should be enforced, and not the 2020 will.
The Court noted that the 2019 and 2020 wills were signed a year apart. The Court was required to make two decisions:
- Whether Eva had capacity to make the 2020 will;
- If not, whether Eva had capacity to make the 2019 will.
Geoffrey, claimed that the 2020 will is valid and reflected Eva’s wishes. Geoffrey claimed that Eva had the mental capacity to make the will despite her age and health. Geoffrey gave an accurate account of when he visited Eva at her retirement home to sign the will. Geoffrey claimed that Eva did not want to leave Isabella anything because Isabella stopped being her carer in 2019 and she did not want to live in a retirement home.
Isabella claimed Eva did not have the capacity to sign the will drafted by Geoffrey in 2020. Isabella argued that a doctor’s report stated that Eva did not have the capacity in 2020 to understand her financial affairs. The report stated she was likely to be easily influenced. Isabella argued that Eva was vulnerable, mentally impaired and isolated due to the COVID lockdown. Isabella claimed the will signed in 2019 reflected Eva’s intentions.
The Court considered the doctor’s report and both Geoffrey and Isabella’s arguments. The Court noted the doctor’s report indicated a gradual decline in Eva’s health. If the doctor’s report was accepted, the gradual decline in Eva’s health meant she would lack capacity before signing the 2019 will. The Court Geoffrey to be a reliable and truthful witness. The Court decided that the 2020 will was valid. The Court found Geoffrey had taken all relevant steps to make sure Eva had capacity to sign the will and dismissed Isabella’s claim.
