Legal capacity addresses a person’s ability to understand the nature and consequences of making decisions that:
A) are legally binding
B) affect their rights, responsibilities, obligations, and legal entitlements, as well as those of others
Examples of these decisions include entering, buying or selling a home or business; initiating a lawsuit; and executing a Health Care Directive, Power of Attorney, or will. Someone who lacks legal capacity (in other words, is legally incapacitated)...
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