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More specifically, however, capacity describes a patient's ability to make autonomous decisions regarding their care, as determined by a physician, whereas competence is a legal term that describes a person's ability to participate in legal processes, as determined by a judge.
A letter of competency will help dispel notions that your documents were created while you lacked the mental capacity to make sound financial and legal decisions. A letter of competency is typically written by a primary care physician who is familiar with any changes in a patient's baseline mental and physical health.
Capacity for healthcare is generally defined in terms of four dimensions or criteria: (a) Understanding, (b) Appreciation, (c) Reasoning, and (d) Expression of a Choice (Grisso & Appelbaum, 1998a; Roth, Meisel, & Lidz, 1977).
The four key components to address in a capacity evaluation include: 1) communicating a choice, 2) understanding, 3) appreciation, and 4) rationalization/reasoning.
A letter of competency is a statement from a physician certifying that a person is capable of making informed decisions about their about their health care, finances and estate.