Testamentary Capacity & Beyond
Testamentary capacity is one of several financial capacities, each its own unique characteristics. While many of the foundational criteria for various financial capacities have been well established, they continue to evolve along with how we use currency and assets, particularly in this digital age.

General
  • Having a concept of the currency in question and its current approximate value
  • How and for what the currency might be used
  • Awareness of one’s general assets and their approximate values
  Functional
  • Navigating the internet
  • Reading and comprehending a financial/bank statement
  • Transacting/exchanging currency (physical or digital)
  • Using an ATM
  Investing
  • Financial projections
  • Historical patterns of how one evaluates investments and whether types of investing align with financial goals
  • May involve more complex calculations especially if options trading or venture investing vs stock market, tax implications, laws pertaining to investment vehicles
  Operational
  • Awareness regarding how one’s business functions (whether an entrepreneur, CEO, or in any employed/contracted position for which financial decisions are a part of the job function – profits, payroll, expansions, taxes, laws etc.)
  • May involve more complex calculations
  Donative
  • Intention to do good
  • Awareness of how the receiving entity aligns with one’s stated intention for donating
  Testamentary Capacity
  • Awareness of one’s potential heirs and overall value of estate assets are unique aspects
  Contractual
    • Pertaining to other miscellaneous financial instruments, and in a broader sense contracts in general

Learn more about testamentary capacity assessments