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A person with dementia may be able to sign legal documents, such as a will, trust or contract, depending on the severity of the dementia and whether such person is under a lucid interval.
What is Legal Capacity to Enter into a Contract?
In order for a legal document to be valid, the parties signing it must have legal or contractual capacity. Legal capacity refers to a party’s age and mental ability to understand the consequences of the document or contract.
Legal Capacity in Terms of Age
In New York, the legal age to enter into contracts is 18 years old. However, minors can enter into contracts if: (a) they are emancipated; (b) the contract is for the purchase of basic necessities such as food; or (c) the contract is entered with parental consent.
Legal Capacity in Terms of Mental Capacity
Aside from age, another aspect of legal capacity is mental capacity. Mental capacity may refer to the capacity to give consent, as evidenced by the person’s ability to understand the nature and consequences of the contract they are signing. This capacity to give consent can be affected by the voluntariness of the person signing the contract and his cognitive ability to comprehend the terms, conditions, rights, and obligations of the contract.
For example, a person who signs the contract under undue influence, duress, or coercion can claim that his capacity to give consent to the contract was affected due to his involuntariness to sign.
In the same way, a person who is cognitively impaired, such as someone with severe dementia, may be considered lacking the capacity to consent to the contract, and thus, without legal capacity.
Dementia and Cognitive Impairment
The fact that a person has dementia does not necessarily mean that his cognitive ability is impaired to the effect that such person did not have the capacity to consent to the contract. Dementia has several stages, and even in a stage of severe dementia, one can still have a lucid interval. For these reasons, having dementia alone, without any further qualification, does not affect one’s ability to sign legal documents.
Stages of Dementia and Its Effect on Legal Capacity
Dementia begins with mild cognitive impairment, which is not dementia per se, but is the transitional phase between normal cognitive aging and dementia. In this stage, an individual may experience mild memory lapses and some cognitive difficulty. Depending on the circumstances of the case, a person with mild cognitive impairment may still have legal capacity to sign documents.
The early stage of dementia is called mild dementia which is characterized by memory problems, communication issues, difficulty with familiar tasks, misplacing items, and changes in mood or personality. One can argue that a person with mild dementia may still enter into contracts, especially during periods of cognitive awareness.
The middle stage of dementia is called moderate dementia which is characterized by increased memory loss, confusion and disorientation, difficulty with self-care, and wandering. In this stage, is it more difficult to argue that the person with dementia has the capacity to contract.
In the late stage of severe dementia where an individual has severe memory loss with minimal verbal communication and total dependence on caregivers for all activities, the individual does not have any more capacity to contract and cannot sign legal documents.
Dementia and Lucid Intervals
Individuals with dementia (including those with severe dementia) may experience lucid intervals. A lucid interval is a temporary return of mental clarity and alertness, where individuals with dementia can suddenly recognize family members and can engage in meaningful conversations. These lucid intervals are unpredictable and can happen randomly at any time. One can argue that a person with dementia who is under a lucid interval can sign a legal document, such as a will, trust or contract. Whether or not such person can sign a legal document always depends on the unique circumstances of the case.
Someone with dementia signing a legal document is always considered a red flag. However, one can argue that a person with the early stages of dementia still has the capacity to understand the legal document and make important decisions. It would depend on the circumstances of the case whether the document can be set aside or not due to absence of legal capacity. The case will likely hinge on the extent of underlying dementia and on the testimony of the witnesses to the signing of the document.
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About the Author
Albert Goodwin Esq. is a licenced New York attorney with over 17 years of courtroom experience. His extensive knowledge and expertise make him well-qualified to write authoritative articles on a wide range of legal topics. He can be reached at 212-233-1233 or [email protected].
