Incapacity Planning of a Parent. The case study must have a title page, Turnitin Originality Score , and a reference page. (There should be a minimum of three to four references (with online links) for each case study.) Total page count of each case study should be 5 to 8 pages (1,500 to 2,400 words). The case studies will be evaluated on the completeness of the recommended solution(s) and the quality of the written assignment using the Course Written Paper Rubric provided in the course syllabus.
John Jones has just finished visiting his aging mother, Claire. Her home is uncharacteristically unkempt. Some bills are unpaid and others have been paid twice. She cannot remember when she last took her medicine and she tells the same stories repeatedly. John has contacted you, his financial adviser, about what he can do to protect his mother. Eventually, Claire’s signature will be needed to manage a bank account, pay a bill, or handle her property. Being that you are unable to do so on her behalf, a court could get involved if you do not plan.
John understands that a person who lacks a certain level of capacity cannot enter into a contract. Many people are surprised to find out that a simple will does not keep the court from intervening into their affairs if they become incapacitated. Without planning for incapacity, John could find himself and his family in a difficult situation.
John brings his mother, Claire, to your office for an assessment of how much she can process the information she is provided. During the assessment, you are looking for the following:
1. Does John’s mother understand the situation that brought her to your office?
2. If you provide her with information, can she process it and develop an opinion?
6. Is she unduly susceptible or vulnerable to outside influences?
If you have any doubts about her capacity, you will ask your client to get an assessment from a physician, psychologist, or social worker. You have asked the family to seek the opinion of Claire’s doctor.
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After a visit to her physician, it was determined that Claire could make and communicate her own decisions. However, the doctor informed the family that at some time in the near future Claire would likely be incapacitated. Claire’s physician suggests that the family make every effort to protect her from her own incapacity.
After the assessment about what the client can and cannot understand, you as the financial adviser will have to address the following scenarios. These scenarios demonstrate how capacity affects Claire’s ability to plan. For example, due to Claire’s capacity can she perform the following:
1. Create or update her will? (If Claire has diminished capacity, can she create or update her will?)
7. Can Claire marry her new boyfriend? Can John protest the marriage?
book: The Tools and Techniques of Employee Benefit and Retirement Planning
Answer preview
Claire has no full capacity to make and update her will now that her memory is diminished. This, however, does not mean that she can’t completely make or update one. John and the family can challenge the will made by Claire on the basis that she has no full mental capacity to make the will. One of the bases of the assessment is to determine whether she understands the nature of the action and its effects. This would require medical evidence that at the time of making the will she lacks the understanding of her action and its effect (Oliver Martin, 17th may 2013). In the case that the doctor has said that she can make her decision though in a later date she will be incapacitated there is a need to prove that at the time of making the will she is capable of making a decision. Claire will also be able to create or update her will if she understands broadly or specifically her assets. If she understands her asset location, ownership in broad she can’t be challenged.
