1. What evidence was important for the court to have to conclude that Patricia Watson lacked capacity?

2. Is a lack of capacity required for the particular day that documents are executed or does the court make a general determination of incapacity?

Patricia Watson, the decedent, was raised in Missouri, but taught elementary school in California where she had three marriages and one daughter who was murdered in 1980. Ms. Watson retained close ties with her half siblings, Richard Ivie, Jimmie Ivie, Ladonna Small, and Bernard Ivie (“the Ivies”).

When Watson retired from teaching in February 2002, and she married Smith. At the time of their marriage, Watson was 70 years old and Smith was 60 years old. Watson had substantial income and approximately $1 million in assets, including her home in California, real estate in Missouri, a pension from the California State Teachers’ Retirement System (CALSTRS), and several bank accounts, retirement accounts, and vehicles. Smith had filed for bankruptcy in 1997 and had minimal income and assets. Watson created her original trust on May 9, 2002, about three months after marrying Smith. At the same time, Watson also created a will with a provision “pouring over” all of her estate’s assets into the trust. Watson’s Missouri attorney, Reginald Young, prepared the documents. All of Watson’s property was conveyed into the trust. They moved to Missouri in 2004.

The Ivies were the sole beneficiaries of the trust. The trust provided “It is expressly the Grantor’s intention that her husband, Arnold L. Smith, not receive any part of the Trust Estate.”

Watson began showing signs that her mental health was progressively deteriorating. She saw a doctor who wrote in his report: “She thinks her husband is trying to poison her with rat poison. She denies hallucinations, but apparently gets very angry quickly on questioning.... At this time the patient seems to have paranoia.” According to her sister, Watson wanted a divorce from Smith because he had ruined her life. Watson also told one of her brothers that she thought she was losing her mind, that she was afraid of Smith, and that she thought he was trying to poison her.

Watson had a neuro-psychological evaluation at the Mayo Clinic in October 2005. Test results showed “a mild to moderate degree of cognitive impairment.” The Mayo Clinic physician concluded that Watson’s diagnosis was vascular dementia.

A second physician stated without qualification in November 2006 that the diagnosis was Alzheimer’s dementia. Before Watson executed the first trust amendment, she was no longer able to care for herself. She needed help with all of her daily living activities. By May 2007, at a family gathering, Watson did not recognize the children of one of her brothers and other previously known family members. Roughly one month after leaving the hospital following a hospitalization, on July 27, 2007, Watson signed the first trust amendment decreasing the Ivies’ share of her property and granting Smith a share. The amendment also added a “no-contest” clause, the purpose of which was to cause anyone challenging the trust to lose his or her share.

Watson’s mental health continued to worsen. At some point after July 2007, she visited one of her neighbors and took off her own clothes in the neighbor’s living room. Inhome nurses’ reports reflect that Watson’s dementia was uncontrolled, she was paranoid and experienced forgetfulness and mood swings.

From early December 2007 to mid-January 2008, Watson retitled her checking account and money market account from the trust to her own name individually and signed documents to “pay on death” to Smith. Watson removed the Ivies from all accounts and beneficiary status. …………….