Source: http://www.inhouselawyer.co.uk/wgd_question/are-individuals-advised-to-create-documents-or-take-other-steps-in-view-of-their-possible-mental-incapacity-and-if-so-what-are-the-main-features-of-the-advisable-arrangements-2/
Timestamp: 2020-02-19 13:45:04
Document Index: 254597301

Matched Legal Cases: ['§26', '§26', '§26', '§26', '§26', '§26', '§26', '§26']

Are individuals advised to create documents or take other steps in view of their possible mental incapacity and, if so, what are the main features of the advisable arrangements? | The In-House Lawyer
The Israeli Legal Capacity and Guardianship Law 1962, provides certain instructions when a person loses capacity, including, the appointment by the court of guardians to individuals who lack legal capacity. The legal actions of these individuals require the authorisation of the guardians or the court (similar to the actions of minors).
However, an individual can create a power of attorney which shall enter into force upon the occurrence of pre-determined events – such as incapacity of the individual. Such power of attorney may bestow powers in relation to financial matters, to health matters or any other matter, all as defined in the relevant power of attorney. The Israeli Legal Capacity and Guardianship Law 1962 set certain conditions which have to be fulfilled in order for such power of attorney to be valid and enforceable.
In a so-called ‘living will’, one can anticipate potential legal incapacity by making ‘extrajudicial protection’ arrangements. These arrangements can deal with personal matters (e.g. health matters) and/or the administration of property. By giving a power of attorney while still capable, one can avoid a court-appointed administrator.
The general consensus is that any arrangement in the nature of a UK lasting power of attorney would cease to have effect if the person who had given it lost legal capacity.
In Austria one can set up a long lasting power of attorney in which one appoints a proxy who can make all these positions over all assets including bank savings, bank accounts, real estate (but then notarised signed).
A long lasting power of attorney becomes legally effective only in connection with a medical confirmation that the giver of the power of attorney is no longer legally competent. A long lasting power of attorney has to be entered in a register of powers of attorney.
In addition there is the institute of the healthcare proxy in which it can be regulated which medical treatment in the event of illness should not be carried out if and when the patient is no longer able to express his will.
The existence of a healthcare proxy (not its contents) is also recorded in a register.
Generally, any document created by a person that is afterwards found to be mentally incapacitated, could be challenged. Guardianship (full or partial) is governed by the law. Therefore, the answer would be no, individuals are not advised to create documents or take other steps in view of their possible mental incapacity.
26.1	Under English law, an individual (called the donor) may, by creating a Lasting Power of Attorney ("LPA"), give authority to one or more individuals (called attorneys) to deal with the donor's property or make decisions relevant to the donor's health and welfare if the donor loses mental capacity. One kind of LPA relates to decisions about the donor's property, and another kind of LPA to decisions about the donor's health and welfare (such as whether the donor should go into a nursing home or receive life-sustaining medical treatment).
26.2	If more than one attorney (§26.1) is appointed under a LPA (§26.1), the attorneys can be appointed to act either jointly (in which case they must decide everything together) or jointly and severally (in which case one of them alone may make a decision). The donor (§26.1) may also specify binding or non-binding preferences in a LPA. Attorneys come under the supervision of the Court of Protection.
26.3	If no LPA (§26.1) has been created by an individual who becomes mentally incapable of managing his property, an application must be made to the Court of Protection for a the appointment of a "deputy", who has a similar role to that of an attorney (§26.1) appointed under a LPA. The creation of a LPA is simpler, quicker and cheaper than such an application, and allows the donor (§26.1) to decide certain matters in advance and to choose who will be making decisions on his behalf.
26.4	An English LPA (§26.1) is, in practice, of limited relevance to a donor (§26.1) who is not living in England and whose assets are situated outside England.
Although individuals may exercise their legal powers in whatever way they would like, proof of testamentary capacity will need to be established whenever there are questions in relation to certain individuals executing documents. This involves proof of the capacity to understand certain important matters relating to the instrument in question such as its nature and effect, the property being disposed of, and the claims which may arise as a result. Also required is actual knowledge and approval of the contents of the instrument.
The Mental Health Law, 2013 gives the Cayman Islands Grand Court (the Grand Court) the power "to do or secure the doing of all such things as appear desirable for the maintenance or benefit of“ a mental health patient, his family and those for whom he might be expected to provide. In exercising such powers, the Grand Court may, on behalf of the patient, arrange for another person to deal with relevant property, enter into any settlement, manage a business, dissolve a partnership, complete a contract, conduct legal proceedings and act as trustee.
Further, the Grand Court Law (2015 Revision) states: "The Court shall have the power to appoint guardians of the persons and estates of persons of unsound mind or suffering from mental illness and for that purpose to enquire into, hear and determine by inspection of the person the subject of such enquiry, or to examine on oath or otherwise the party in whose custody or charge such person may be, or any other person or persons, or use such other ways and means by the truth may be discovered".
Individuals can consider creating a Lasting Power of Attorney ("LPA") to appoint donees for the management of his / her personal welfare and / or property affairs in the event of loss of mental capacity. The LPA is a creature of the Mental Capacity Act. For the LPA to be valid, it must be registered with the Public Guardian.
Provisional arrangements for future incapacity are not common in Portugal. The legitimacy to implement restrictions of asset disposal by individuals rests mainly with the spouse and/or the family. The most common procedure is disabling an individual from being able to dispose of assets, by proof of incapacity.
In accordance with article 449 of the Mexican Federal Civil Code, the object of the guardianship is the protection of the person and property of those who not being subject to parental authority have natural and legal incapacity to govern themselves.
Individuals may by authentic document declare their will of who should be their committee in case of incapacity. However, the appointment of committee is made only by court, considering: (1) the order of preference provided for by law (i.e. if there is a husband/spouse, he/she will be the committee, in their absence, it will be their ascendant, and in their absence, it will be their descendants; and if none of them can be, the judge will choose the committee); and (2) the best interest of the individual.