The bottom line:
An individual doesn't lose their legal capacity just because they're struggling; only a court can actually strip that away. This happens through a formal legal proceeding involving medical evaluations. If the judge determines the person truly lacks the ability to make independent decisions, they’ll issue a ruling to revoke their capacity, at which point the Department of Social Services steps in to appoint a legal guardian.
Until that official ruling is made, the person remains legally empowered to enter into contracts and conduct business. However, there is a significant caveat: if someone enters into an agreement while they are mentally incapable of understanding what they are doing—even if they haven't been formally declared incompetent yet—that transaction is considered void. This can be challenged and proven in court later on.
If you have genuine concerns that someone isn't capable of looking after their own interests, I suggest taking action to protect them. You should reach out to the Department of Social Services or consult with an attorney who can initiate the necessary proceedings to address their legal capacity.
An individual doesn't lose their legal capacity just because they're struggling; only a court can actually strip that away. This happens through a formal legal proceeding involving medical evaluations. If the judge determines the person truly lacks the ability to make independent decisions, they’ll issue a ruling to revoke their capacity, at which point the Department of Social Services steps in to appoint a legal guardian.
Until that official ruling is made, the person remains legally empowered to enter into contracts and conduct business. However, there is a significant caveat: if someone enters into an agreement while they are mentally incapable of understanding what they are doing—even if they haven't been formally declared incompetent yet—that transaction is considered void. This can be challenged and proven in court later on.
If you have genuine concerns that someone isn't capable of looking after their own interests, I suggest taking action to protect them. You should reach out to the Department of Social Services or consult with an attorney who can initiate the necessary proceedings to address their legal capacity.