When assessing whether a trustee or grantor of a trust is mentally competent, there are many factors that must be considered. If your reason for questioning mental competence relates to the administration of the trust or management of trust assets, you will need to show that the individual is unable to manage his or her own finances or is unable to resist fraud or undue influence. The recent court case involving Donald Sterling and the Los Angeles Clippers highlights this issue. Mr. Sterling’s wife Shelly is attempting to remove Mr. Sterling as a co-trustee of the trust and block his attempts to revoke the trust based on claims that he incompetent. Attorney Scott Grossman recently discussed the factors that speak to his mental incompetence during an interview with KFI AM 640.
Six Business-Related Factors That Apply to Mental Competence as Opposed to Mental Incompetence:
During his appearance on Shannon Farren’s news show, Attorney Grossman noted that the following should be considered when assessing Donald Sterling or any other individual’s mental competence for managing a trust:
- First of all, whether the individual is successfully managing his business or his workplace responsibilities.
- Furthermore, whether the individual is making reasonable business decisions.
- Additionally, whether the individual is able to stay focused at work.
- Whether the individual raises normal business-related questions during the purchase or sale of real estate.
- Also, whether the individual engages in good follow-up during business transactions.
- Lastly, whether the individual makes reasonable demands during business transactions.
In conclusion, making a decision as to whether an individual may be mentally incompetent requires guidance from an experienced professional. We encourage you to listen to Attorney Grossman’s entire interview on KFI AM 640 for more valuable information on this topic. Find us on Facebook for a link to the broadcast!
AttorneyThe Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307