Consumer Law, Warranties Contract & Mental Capacity

[Rosie4268]

Hello,
Thanks in advance for any information you can provide.

I'll make this as concise as possible. My mother has been having some financial difficulties due to several factors, including the possible onset of Alcohol Dementia. However, she does not yet meet the criteria to be deemed incompetent. My sisters and I are working to get a Power of Attorney in place so we can help her handle her affairs. [I know this is not the elder law forum...my question is based on contract law. I'm just giving you background].

As she is in great debt, my Uncle is planning on 'buying her out' of some land that they both share as inheritance. As the land has not sold yet, she is going to be getting a fraction right now of what she might have been able to get once sold. My uncle has every intention of paying her more later once the land does sell. The inheritance is listed in a Will from my grandmother/grandfather. They are to split everything 50/50.

As this process continues with our mother, we may eventually have to go down the road of guardianship. Getting to that goal presumes an eventual evaluation of my mother and deeming her incompetent.

Here's the question/concern: a) To what extent should my uncle be concerned about the possibility of my mother coming after him legally later on by claiming she was incompetent at the time of the signing of the initial contract? (i.e. "I didn't get a fair deal b/c I was unable to sign for it.") b)Also, I don't believe there is, but is there any kind of 'statute of limitations' on such things?

He wants to cover himself as much as possible (understandably).

I should add that the land resides in Alabama. My mom is in Colorado (as tagged).

Thanks again! I appreciate it so much!
Ginger McShane

 

[dee_dub]

my Uncle is planning on 'buying her out' of some land that they both share as inheritance. As the land has not sold yet, she is going to be getting a fraction right now of what she might have been able to get once sold. My uncle has every intention of paying her more later once the land does sell.

Your mother should make sure that's written into the contract and get a promissory note.

a) To what extent should my uncle be concerned about the possibility of my mother coming after him legally later on by claiming she was incompetent at the time of the signing of the initial contract? (i.e. "I didn't get a fair deal b/c I was unable to sign for it.")

If your mother and he agree on a fair price and he signs a promissory note for the amount he will be paying later, he has little to fear. She will have gotten a fair deal.

Whether a potential claim could be statute-barred depends on the law specific to your jurisdiction. I would not be surprised to find out there was a limitation period of some type.

Your uncle should make a note of the mother's mental acuity when she signs the contract, and should have it witnessed by a lawyer who also notes her condition. It is common practice for lawyers to do this e.g. when witnessing wills. It's not medical proof, but it's not bad.