What term describes the condition when a person is no longer able to handle their financial affairs due to disability?

The term that accurately describes the condition when a person is no longer able to manage their financial affairs due to a disability is incapacity. This condition signifies a state in which an individual is unable to make informed decisions, commonly due to illness, injury, or mental impairment. Incapacity can have significant implications for financial planning, as it often necessitates the appointment of a trusted individual to oversee a person's financial matters, ensuring that bills are paid, assets are managed, and investments are handled appropriately.

In the context of financial planning, understanding incapacity is crucial, as it informs the design of legal documents such as powers of attorney. This ensures that a designated person can act on behalf of someone who is incapacitated, thereby safeguarding their financial interests.

The other terms mentioned, while related to legal authority in financial matters, do not specifically refer to the condition of being unable to manage one's affairs due to a disability. Contingent authority typically refers to a conditional power granted to another party that activates under certain circumstances. Special and specific powers of attorney denote types of legal documents allowing one person to act on behalf of another but do not inherently describe a person's inability to manage their own affairs.