Dear Moneyist,
I am writing on behalf of an acquaintance (I’ll call him Steve) who has a dilemma. Steve’s father passed away about two years ago. In his will, his father left Steve nearly $800,000. However, Steve, by his own admission, was heavily addicted to drugs at the time and was not in his right mind. When Steve’s brother offered him $10,000 cash to sign away his portion of the will, Steve foolishly agreed and signed.
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Now, two years later, Steve is completely recovered, no longer uses drugs, and is once again a productive member of society. He has explained to his brother that he signed the agreement in a period of insanity and he has asked his brother to honor the father’s wishes. The brother refuses.
Does Steve have any recourse?
Concerned friend in Massachusetts
Dear Concerned,
Steve is fortunate to have a friend like you.
Call Steve, and go see a fraud lawyer together, and file a suit against Steve’s brother. Assuming he knows where his brother lives and he didn’t spend the $800,000 over the last two years, Steve has a chance of restoring his inheritance. Even if he was no longer clean and dry, this money should at least be put in a trust for your friend. Why? Because Steve’s mental capacity was mentally impaired at the time. The Moneyist hears a lot about elderly parents who may or may not be of sound mind being put under pressure by a new romantic interest or greedy son or opportunistic daughter to give away their estate. But being incapacitated simply means that you don’t have the legal capacity to make important decisions, or any decisions.
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This is how the Massachusetts Court System defines it: “An incapacitated person is defined as someone who “for reasons other than advanced age or minority, has a clinically diagnosed condition that results in an inability to receive and evaluate information or to make or communicate decisions to such an extent that the individual lacks the ability to meet essential requirements for physical health, safety, or self-care, even with appropriate technological assistance.” It adds, “Mental illness is defined as a medical condition that disrupts a person’s thinking, feeling, mood, ability to relate to others, and daily functioning.” That definition is similar in other U.S. states. Steve’s brother’s move was clearly opportunistic.
Mental health issues account for 52% of those who are no longer deemed fit to take care of their finances or estate, cognition (84%), and substance abuse (4%), according to this 2010 review of California court files. As this document suggests, many conservatees (people who because of physical or mental limitations require a conservator to oversee their estate) have multiple impairments, which could run the gamut from depression and anxiety to dementia and mobility. (Some 13% of alleged abusers also have substance abuse issues, the research found.) Steve has got his life back on track and should not be a prisoner of the past. This was clearly a devious move by his brother. If he wanted to help Steve, he could have petitioned a court to become conservator or power of attorney and put Steve’s $800,000 inheritance in trust. Instead, he helped himself.
Good luck, and let me know how it goes.
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