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It is important to differentiate capacity from competency. Competency is a global assessment and a legal determination made by a judge in court. Capacity, on the other hand, is a functional assessment regarding a particular decision.
Right before Power of Attorney, last will in testament or any other legal binding contracts are being created, have your loved one's doctor write a letter stating your loved one is competent at that time. This is known as a ?letter of competency.? Have your elder law attorney keep this document in their files.
In determining whether the defendant is competent to stand trial, the court must determine "whether [the defendant] has sufficient present ability to consult with his lawyer with a reasonable degree of rational understanding -- and whether he has a rational as well as factual understanding of the proceedings against ...
To be declared incompetent or incapacitated for the purpose of a power of attorney, the principal's physician or psychologist simply needs to perform an evaluation and issue a letter detailing the status and extent of his or her mental capacity.
When it comes to a letter of capacity, letter of incapacitation, or medical incapacity letter, these are all different ways to say the same thing. A letter of capacity and a letter of competency are both drawn up and signed by a licensed physician to be presented in court to establish guardianship or conservatorship.