Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Incapacity definition

What does Incapacity mean? In legal practice, incapacity refers to illness or disability—physical or mental—that prevents an employee or pension scheme member from carrying out their job. In pensions, the term is usually defined in the scheme rules and varies widely: schemes may require permanent or long-term incapacity, apply “own occupation” or “any suitable occupation” tests, specify the medical evidence needed, and allocate decision-making to trustees, employers or insurers. It commonly determines eligibility for ill‑health early retirement or insured benefits. In employment law, incapacity engages capability procedures and the fairness of dismissal (for example, under the Employment Rights Act 1996, and in Northern Ireland the...

Property and Financial Affairs LPAs: Precedent Instructions, Preferences and Drafting Guidance (England and Wales)

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Practice notes

The templates in this document are drawn from the material in Part 2, Chapter 15 of Cretney and Lush on Lasting and Enduring Powers of Attorney. This paper provides model wording suitable for use in property and financial affairs lasting powers of attorney (LPAs).

For alternative wording relevant to health and welfare LPAs, see: LPA precedent instructions and preferences—health and welfare LPAs. For wording that can be included in either property and affairs or health and welfare LPAs, see: LPA precedent instructions and preferences—property and financial affairs and health and welfare LPAs. For guidance on instructions and preferences, see Practice Note: LPAs—instructions and preferences.

Triggering event—evidence of mental Incapacity

'My attorneys may exercise this Authority only after they have obtained a written medical opinion confirming that I am no longer mentally able to manage and administer my property and financial affairs.'...

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Web page updated on 21/05/2026

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