The subject of who determines capacity is a live topic. Is it medical? Is it legal? More importantly, does it make sense?
The test regarding testamentary capacity is generally well understood. The trick is to understand it. The High Court decision in Public Trust v Lawrence clearly articulates the divide between understood and understand. As noted at [53]:


Applied in the context of the will before the court, the following paragraphs of the decision are instructive:

The take home message, which is not new, is capacity (testamentary or otherwise) cannot be confirmed in an information vacuum. It isn’t about credibility – its about the facts.
References:
- Public Trust v Lawrence [2022] NZHC 558
- Murray v Murray [2012] NZHC 545
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