Lawyers should be familiar with the standards of capacity for specific legal transactions under relevant statutes and case law. This includes areas such as contracts, criminal law, executing advance directives and guardianship proceedings. We will discuss the “red flags or signs of “diminished capacity that a lawyer may observe in a client as well as the ethical guidelines for assessing capacity in accordance with ABA Model Rules of Professional Conduct, Section 1.14. Last, we will explore the “Mental Health Legal Tool Kit, offering creative legal solutions to difficult mental health issues.