DURABLE FINANCIAL POWER OF ATTORNEY

(Arizona – Compliant with the Arizona Uniform Power of Attorney Act)

[// GUIDANCE: This template is intended for use by licensed attorneys. Replace all bracketed placeholders, delete inapplicable bracketed options, and review all statutory references and execution formalities before presenting to the client.]

DOCUMENT HEADER

1. Parties
   1.1 Principal: [PRINCIPAL LEGAL NAME], a resident of the State of Arizona, residing at [ADDRESS] (“Principal”).
   1.2 Agent: [PRIMARY AGENT LEGAL NAME], residing at [ADDRESS] (“Agent”).
   1.3 Successor Agent(s) (if any): [FIRST SUCCESSOR NAME]; [SECOND SUCCESSOR NAME].

2. Effective Date
   This Durable Financial Power of Attorney (“Power” or “Agreement”) is effective on the Effective Date of [MONTH DAY, YEAR] unless the Principal elects the “springing” option in § III.2.

3. Governing Law & Forum
   3.1 This Power is governed by and construed in accordance with the laws of the State of Arizona (“state_power_of_attorney_law”).
   3.2 All judicial proceedings relating to this Power shall be brought exclusively in the appropriate Arizona state probate court.

4. Recitals
   A. The Principal desires to designate an Agent to manage the Principal’s property, financial, business, and legal affairs.
   B. The Principal intends that this Power be durable, i.e., not terminated by the Principal’s disability or incapacity.
   C. This Power is executed in conformity with, and shall be interpreted to the maximum extent permissible under, the Arizona Uniform Power of Attorney Act (the “Act”).

NOTICE TO THE PRINCIPAL

This document gives the person you designate as your Agent the power to make decisions and act for you, the Principal. You should understand these powers and their consequences. If you have any questions about this Power, obtain competent legal advice. You may revoke this Power at any time by providing written notice as set forth in § VI.3.

NOTICE TO THE AGENT

By accepting appointment, you assume fiduciary duties under applicable law. These include the duties of loyalty, care, record-keeping, to keep the Principal’s property separate from your own, and to act only within the scope of authority granted. Failure to comply may subject you to civil or criminal penalties.

TABLE OF CONTENTS

I. Definitions
II. Representations & Warranties
III. Operative Grant of Authority
IV. Covenants & Restrictions on Agent
V. Default & Remedies
VI. Risk Allocation
VII. Dispute Resolution
VIII. General Provisions
IX. Execution & Acknowledgment

I. DEFINITIONS

“Act” – the Arizona Uniform Power of Attorney Act, as incorporated in Arizona Revised Statutes.
“Agent” – the individual(s) so identified in Document Header §1.2 and any Successor Agent who accepts appointment.
“Assets” – all property, tangible or intangible, real or personal, now owned or later acquired by the Principal.
“Durable” – surviving the Principal’s incapacity pursuant to § III.3.
“Effective Date” – the date specified in Document Header §2, unless a springing event is elected.
“Incapacity” – the inability of the Principal to manage property or business affairs, as determined under the Act.
“Limited Arbitration” – arbitration solely for monetary claims ≤ $50,000, as provided in § VII.2.
“Special Authority” – powers requiring express language under the Act, listed in § III.1(B).

[// GUIDANCE: Add additional defined terms if further customized powers are inserted.]

II. REPRESENTATIONS & WARRANTIES

2.1 Principal represents and warrants that:
a. Principal is at least eighteen (18) years of age and of sound mind;
b. Principal executes this Power voluntarily and without undue influence; and
c. No other durable power of attorney conflicting with this Power is in effect, or if so, it is identified in Schedule 1.

2.2 Agent represents and warrants that, upon signing the Acceptance in § IX.3:
a. Agent is at least eighteen (18) years of age and capable of accepting fiduciary duties;
b. Agent has reviewed the Act and understands the fiduciary obligations imposed; and
c. Agent is not currently disqualified by law from acting as fiduciary for the Principal.

III. OPERATIVE GRANT OF AUTHORITY

3.1 General Authority
Subject to all limitations herein, the Principal grants the Agent authority to act with respect to all matters relating to the Principal’s Assets, including but not limited to:
i. Real property transactions;
ii. Tangible personal property transactions;
iii. Stock, bond, and securities transactions;
iv. Banking and other financial institution transactions;
v. Business operating transactions;
vi. Insurance and annuity transactions;
vii. Claims and litigation;
viii. Personal and family maintenance; and
ix. Governmental benefits and tax matters.

3.1(B) Special Authority (Hot Powers) – CHECK/INITIAL TO GRANT
The following powers are NOT granted unless the Principal places initials in the corresponding box.
| Initials | Special Authority |
|----------|------------------|
| [ ] | Make, amend, or revoke gifts (including charitable gifts) within annual federal gift tax exclusion limits |
| [ ] | Create, amend, or revoke a trust |
| [ ] | Create or change rights of survivorship |
| [ ] | Create or change beneficiary designations |
| [ ] | Delegate authority granted under this Power |
| [ ] | Waive the Principal’s right to be a beneficiary of a joint and survivor annuity |
| [ ] | Disclaim or refuse an inheritance or gift |

[// GUIDANCE: Arizona law requires these “hot powers” to be granted with clear, separate authorization. Consider client objectives carefully.]

3.2 Commencement Options
□ (a) Immediately on the Effective Date.
□ (b) Springing upon certification of Incapacity by [ONE / TWO] licensed physicians.

3.3 Durability
This Power shall not be affected by the subsequent disability or Incapacity of the Principal.

IV. COVENANTS & RESTRICTIONS ON AGENT

4.1 Fiduciary Duties – Agent shall:
a. Act solely in the Principal’s best interest;
b. Avoid self-dealing or conflicts of interest unless expressly authorized;
c. Keep accurate books and records available for review by the Principal, court, or interested persons;
d. Preserve the Principal’s estate plan, to the extent known, consistent with the Principal’s objectives and best interests.

4.2 Compensation & Reimbursement
a. Agent shall be [UNCOMPENSATED / COMPENSATED at $____ per hour / other agreed formula].
b. Agent is entitled to reimbursement for reasonable out-of-pocket expenses incurred in good-faith performance.

4.3 Co-Agents
a. If multiple Agents act concurrently, they shall act [JOINTLY / SEVERALLY] unless prohibited by law.
b. A dissenting Agent shall promptly document the dissent and may seek protective relief in probate court.

4.4 Prohibited Acts
Agent shall not:
a. Create, amend, or revoke the Principal’s will;
b. Vote on behalf of the Principal in any public election;
c. Contract marriage on behalf of the Principal; or
d. Commit any act inconsistent with the Act or this Power.

V. DEFAULT & REMEDIES

5.1 Events of Default
a. Breach of fiduciary duty;
b. Misappropriation or commingling of Assets;
c. Failure to provide accounting within thirty (30) days of written demand;
d. Incapacity or death of Agent;
e. Court determination of Agent’s misconduct.

5.2 Notice & Cure
Unless emergency relief is required, an interested person shall give the Agent written notice specifying the default and a ten (10) day period to cure before seeking remedies.

5.3 Remedies
a. Suspension or termination of Agent’s authority;
b. Injunctive relief or appointment of a conservator;
c. Monetary damages, including double damages for conversion;
d. Recovery of reasonable attorney fees and costs.

VI. RISK ALLOCATION

6.1 Indemnification of Agent
The Principal shall indemnify the Agent against all claims, liabilities, and expenses arising from acts performed in good faith and within the scope of authority, except to the extent such claims arise from the Agent’s gross negligence, willful misconduct, or breach of fiduciary duty.

6.2 Limitation of Liability
The Agent’s liability to the Principal for monetary damages shall be capped at the total Assets Under Management at the time the cause of action accrues, excluding damages resulting from gross negligence or intentional misconduct.

6.3 Reliance on Third-Party Certifications
A third party may rely conclusively on the validity of this Power and the authority granted herein without further inquiry, provided the third party receives a notarized copy or certified abstract of this Power.

6.4 Force Majeure
The Agent is not liable for failure to act when prevented by events beyond reasonable control, including natural disasters, war, or governmental restrictions.

VII. DISPUTE RESOLUTION

7.1 Forum Selection
Exclusive jurisdiction and venue for all proceedings that are not subject to arbitration shall lie in the Arizona state probate court of the county where the Principal resides.

7.2 Limited Arbitration
Monetary disputes not exceeding Fifty-Thousand Dollars (US $50,000) arising out of Agent’s administration may, at the election of any party, be submitted to binding arbitration administered under the Commercial Rules of the American Arbitration Association then in effect. The place of arbitration shall be [COUNTY], Arizona. Injunctive or equitable relief is expressly carved out.

7.3 Jury Waiver
To the fullest extent permitted by Arizona law, the parties knowingly waive the right to trial by jury for any claim that is not subject to arbitration.

7.4 Injunctive Relief Preservation
Nothing in this § VII shall impair any interested person’s right to seek emergency or provisional fiduciary remedies, including temporary restraining orders or preliminary injunctions, in probate court.

VIII. GENERAL PROVISIONS

8.1 Amendment & Waiver
This Power may be amended only by a subsequently executed durable power of attorney or written instrument signed by the Principal and acknowledged before a notary. No waiver of a provision shall constitute a continuing waiver.

8.2 Revocation
The Principal may revoke this Power at any time by:
a. Executing a written revocation; and
b. Delivering the revocation to the Agent and any known third parties relying on this Power.
Revocation is effective when such notice is received.

8.3 Assignment & Delegation
The Agent may not delegate authority except to the extent expressly authorized in § III.1(B) and then only in accordance with the Act.

8.4 Successors & Assigns
This Power inures to the benefit of and binds the Principal, the Principal’s heirs, devisees, and personal representatives, and any duly appointed Successor Agent.

8.5 Severability
If any provision is held invalid, the remaining provisions shall remain in full force and effect and shall be construed to carry out the Principal’s intent.

8.6 Integration
This document constitutes the entire agreement with respect to the subject matter and supersedes all prior durable financial powers of attorney executed by the Principal, except as listed in Schedule 1.

8.7 Counterparts & Electronic Signatures
This Power may be executed in counterparts, each of which is deemed an original. Signatures transmitted electronically or by facsimile are effective as originals.

IX. EXECUTION & ACKNOWLEDGMENT

9.1 Principal’s Signature

[PRINCIPAL LEGAL NAME], Principal
Date: _______

9.2 Acknowledgment (Notary Public)

State of Arizona )
County of _______ )

The foregoing instrument was acknowledged before me on _/_/_ by [PRINCIPAL LEGAL NAME], who is personally known to me or who has produced _____ as identification.

Notary Public
My Commission Expires: _______

[// GUIDANCE: Arizona recognizes notarization as the preferred execution method; a witness attestation block may be added if desired.]

9.3 Agent’s Acceptance

I, [AGENT LEGAL NAME], have read the “Notice to the Agent,” accept the appointment, and agree to act in accordance with the duties and restrictions herein and under applicable law.

[AGENT LEGAL NAME], Agent
Date: _______

9.4 Successor Agent Acceptance (if any)

[FIRST SUCCESSOR NAME], Successor Agent
Date: _______

[Duplicate as needed for additional Successor Agents.]

Schedule 1 – Prior Powers of Attorney (If Any)

[Describe or attach prior powers to be revoked or left in force.]

[// GUIDANCE: TO RECORD FOR REAL PROPERTY TRANSACTIONS –
1. Attach legal description of any Arizona real property.
2. Record original or certified copy with the county recorder’s office where the property is located.
3. Verify compliance with A.R.S. Title 33 (real property recording requirements).]