Estate Planning

Insane Delusions and Testamentary Capacity

By Hull & Hull LLP

A testator who suffers from "insane delusions" may not have testamentary capacity.  The case law provides numerous definitions and tests for insane delusions, but there is no single dedicated leading case.  Perhaps the best way to grasp this principle is by starting with the classic statement from Banks v. Goodfellow (1870), L.R. 5 Q.B. 549 on testamentary capacity:

"It is essential to the exercise of such a power that a testator shall understand the nature of the act and its effects;  shall understand the extent of the property of which he is disposing; shall be able to comprehend and appreciate the claims to which he ought to give effect; and with a view to the latter object no disorder of the mind shall poison his affections, pervert his sense of right or prevent the exercise of his natural faculties;  that no insane delusion shall influence his will on disposing of his property, and bring about a disposal of it which would not have been made otherwise."

An excellent recent examination of various statements of the principle is found in Royal Trust Corporation  of Canada v.  Saunders (2006), 2006 CanLII 19424 (On. S.C.), while Banton v. Banton (1998), 1998 CanLII 14926 (ON S.C.) provides a precise, thoughtful application of the principle. 

My favourite case of a will invalidated by the testator's insane delusions occured in Great Britain in 2007.  The disinherited son of Branislav Kostic successfully challenged Mr. Kostic's will, which gave 8.3 million pounds to the Conservative Party.  Mr. Kostic had become a believer that the redoubtable Prime Minister Thatcher would "save the world from satanic monsters and freaks".  Mr. Kostic had apparently written to Ms. Thatcher, appealing to her that she was the only person who could save the world from bestial creatures.  Mr. Kostic also believed the female members of his family were out to do him in (poison), among other things.    

Enjoy the week,

Chris Graham

Christopher M.B. Graham - Click here for more information on Chris Graham.

Full post as published by Toronto Estate Law Blog on November 02, 2009 (boomark / email).