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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.
As you can see, the doctors letter of incompetence ends the individuals ability to make any legal, medical, personal, or financial decisions.
In general, a person is considered incapacitated when he or she is no longer able to manage their own affairs or maintain his or her own physical well-being. There are some medical conditions that also result in a declaration of incapacity, such as dementia or various mental illnesses.
A letter of incapacitation is a document that is used to verify an individuals incapacity to perform certain tasks or activities due to physical or mental limitations.
Statement of Incapacity for Finances and Property (ET-4427). A document written by a physician stating that the principal is incapacitated to the extent that they cannot manage financial decisions. Being unable to make health care decisions does not meet this requirement.

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Form 21 - Certificate of Incapacity to Manage Ones Property under Subsection 54(4) of the Act - Forms - Central Forms Repository (CFR)
A lack of physical or mental/cognitive ability that results in a persons inability to manage their own personal care, property, or finances. A lack of ability to understand ones actions when making a will or other legal document.
If youve been sick with the flu for a week, barely able to get out of bed, then youve got an idea of what its like to be incapacitated. Incapacitated means empty of strength, helpless, or powerless.

statement of incapacity form wisconsin