Which of the following best describes the criteria for establishing incapacity?

The criteria for establishing incapacity primarily revolves around the individual's ability to manage their personal affairs and make informed decisions. This involves assessing whether the person can understand the consequences of their decisions, appreciate the significance of their situation, and communicate their preferences effectively.

Incapacity is not simply linked to specific tasks, such as paying bills or being physically disabled; rather, it encompasses a broader understanding of cognitive functionality and the ability to engage in decision-making processes that impact one’s life and wellbeing. The presence of physical disability or being over a certain age does not inherently indicate incapacity, as many individuals may manage their affairs and make decisions competently despite these factors. Thus, the correct option accurately reflects the comprehensive nature of incapacity criteria, which is centered on an individual's ability to handle personal matters and make informed choices.