What is a Durable Power of Attorney for Finances?

Legal document authorizing trusted agent to manage financial affairs during incapacity, covering banking, investments, real estate, and business decisions for comprehensive financial management.

What should a Durable Power of Attorney for Finances include?

Recitals Whereas, Appointment Of Agent T, Effective Date T, Durability T, Powers Granted T, Limitations On Agent.

When do I need a Durable Power of Attorney for Finances?

Planning for potential incapacity to ensure financial affairs continue without court intervention. Authorizing trusted family member to manage finances during extended illness or disability. Enabling spouse or adult child to handle banking and investment decisions when needed. Avoiding conservatorship proceedings by establishing advance financial management authorization. Creating backup financial decision-making authority for business owners and retirees.

Free Durable Power of Attorney for Finances Template | Download & Customize

DURABLE POWER OF ATTORNEY FOR FINANCES

THIS DURABLE POWER OF ATTORNEY FOR FINANCES (“Agreement”) is made on [Date], by and between:

Principal:
Name: [Principal Name]
Address: [Principal Address]

AND

Agent (Attorney-in-Fact):
Name: [Agent Name]
Address: [Agent Address]

(If applicable)
Successor Agent(s):
Name: [Successor Agent Name]
Address: [Successor Agent Address]

RECITALS

WHEREAS, the Principal desires to appoint the Agent to manage the Principal’s financial affairs; and

WHEREAS, the Principal intends this Power of Attorney to be durable and remain in effect even if the Principal becomes incapacitated;

NOW, THEREFORE, the parties agree as follows:

1. APPOINTMENT OF AGENT

The Principal hereby appoints [Agent Name] as Attorney-in-Fact (“Agent”) to act for the Principal in all matters described in this Agreement.

If [Agent Name] is unable or unwilling to serve, the Principal appoints [Successor Agent Name] as successor Agent.

2. EFFECTIVE DATE

This Power of Attorney shall become effective:
[ ] Immediately upon signing
[ ] Only if the Principal becomes incapacitated (springing power)
(Check one and specify any additional conditions: [Additional Conditions])

3. DURABILITY

This Power of Attorney shall not be affected by the Principal’s subsequent disability or incapacity.

4. POWERS GRANTED

The Agent is authorized to act on the Principal’s behalf with respect to the following financial matters (check all that apply):

The Agent may exercise only those powers initialed or checked above.

5. LIMITATIONS ON AGENT’S POWERS

The Agent may not:

Make or change the Principal’s will.
Make gifts of the Principal’s property unless specifically authorized: [ ] Yes [ ] No
Perform acts not authorized by this Agreement or by law.

Additional limitations (if any): [Specify Limitations]

6. ACCOUNTING

Upon written request by the Principal or a court, the Agent shall provide a written accounting of all financial actions taken under this Agreement.

7. THIRD PARTY RELIANCE

Third parties may rely upon the representations of the Agent as to all matters regarding powers granted under this Agreement, and no person who acts in reliance on the Agent’s authority shall incur any liability to the Principal or the Principal’s estate.

8. REVOCATION

This Power of Attorney may be revoked by the Principal at any time by providing written notice to the Agent and any relevant third parties. Otherwise, it will remain in effect until the Principal’s death or revocation in writing.

9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of [Governing Law State/Country].

10. INDEMNIFICATION

The Principal agrees to indemnify and hold harmless the Agent from any liability arising from lawful acts or omissions performed in good faith under this Agreement.

11. SEVERABILITY

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

12. MISCELLANEOUS

This document revokes any prior durable power of attorney for finances signed by the Principal, unless otherwise stated: [Specify Exceptions]
Photocopies or electronic copies of this signed document shall be as effective as the original.

13. SIGNATURES

Principal:
Signature: ___________________________
Name: [Principal Name]
Date: [Date]

Agent (Attorney-in-Fact):
Signature: ___________________________
Name: [Agent Name]
Date: [Date]

(If applicable)
Successor Agent:
Signature: ___________________________
Name: [Successor Agent Name]
Date: [Date]

14. NOTARIZATION (Recommended)

State of [State], County of [County]

On [Date], before me, [Notary Name], a Notary Public in and for said state, personally appeared [Principal Name], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she/they executed the same.

Witness my hand and official seal.

Signature: ___________________________
Notary Public
My Commission Expires: [Date]

Disclaimer

This document is a template and may not be suitable for all situations. The parties should consult with legal counsel before signing this agreement.

Durable Power of Attorney for Finances