The test from Banks v Goodfellow (1870) is a foundational legal standard for determining testamentary capacity, which is the ability of a person to make a valid will.
The test outlines four key criteria that a testator must meet:
1. Understanding the Nature of the Act: The testator must understand that they are making a will and the effects of this act.
2. Knowledge of the Extent of Property: The testator must have a general understanding of the nature and extent of their property.
3. Awareness of Potential Claimants: The testator must be able to comprehend and appreciate the claims to which they ought to give effect, such as those of family members or dependents.
4. Absence of Mental Disorder Influencing Decisions: The testator must not be suffering from any mental disorder or insane delusion that affects their decisions regarding the distribution of their property.
These criteria ensure that the testator is making informed and rational decisions about their estate. The test remains relevant today, although there are discussions about updating it to reflect modern medical and social contexts.
Summary of the Judgment in Re Oliver (deceased) [2016] QSC 264
Case Background:
- Steele William Oliver, who suffered from severe schizophrenia, made a will in 2011.
- His brother, Daniel Frederick Oliver, challenged the will’s validity, arguing that Steele lacked testamentary capacity.
Key Points of the Judgment:
- Testamentary Capacity:
- The court found insufficient evidence to prove Steele had testamentary capacity when he made the will.
- The solicitor’s notes and the doctor’s forms did not adequately address Steele’s understanding of potential claimants or his reasons for excluding some siblings.
- Mental Health Considerations:
- Steele’s long-term schizophrenia and his confinement in a psychiatric facility were significant factors.
- The fluctuating nature of his mental state raised doubts about his capacity at the time of making the will.
- Outcome:
- The will dated 11 October 2011 was declared invalid.
- The Public Trustee of Queensland was appointed to administer Steele’s estate.
- Applications by both Daniel Oliver and the Public Trustee were dismissed.
- Costs:
- No order for costs was made, as the Public Trustee failed to prove the will’s validity due to inadequate documentation.
This judgment highlights the importance of thorough documentation and clear evidence when assessing testamentary capacity, especially in cases involving mental health issues.
Do you have questions about testamentary capacity? Please contact us today.