Future Business Leaders of America (FBLA) Business Law Practice Exam

What does "testamentary capacity" mean?

1. The legal ability to enter into contracts

2. The physical health of the individual making a will

3. The mental ability (being of sound mind) to create a will

4. The financial status of a person creating a will

The correct answer is: The mental ability (being of sound mind) to create a will

Testamentary capacity refers specifically to the mental ability of an individual to make a valid will, which means that the person must be of sound mind at the time of creating that will. This includes being able to understand the nature of the document they are signing, the extent of their assets, and the implications of their distribution. Essentially, it determines whether a person has the cognitive ability to make decisions regarding their estate and understand the significance of those decisions. The other options relate to different legal concepts that do not directly pertain to the creation of a will. For instance, entering into contracts involves contractual capacity, while physical health is not a determining factor of mental capacity in the context of will making. Financial status, while it might influence the content of a will, does not impact whether an individual has the necessary mental capability to create that will. Therefore, the correct answer emphasizes the essential requirement that a testator must have the mental ability to execute a will effectively.