DISCLAIMER (READ CAREFULLY)
This template is provided for informational and educational purposes only and does not constitute legal advice. Use of this template does not create an attorney-client relationship with the drafter or with OpenAI. Practitioners must review all applicable law, tailor the provisions to the specific facts, and obtain any necessary client consents before use.

DURABLE FINANCIAL POWER OF ATTORNEY

State of California

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block
XI. Statutory Notices (California Specific)

I. DOCUMENT HEADER

1. Parties.
   a. Principal: [PRINCIPAL LEGAL NAME], residing at [ADDRESS] (“Principal”).
   b. Agent: [PRIMARY AGENT LEGAL NAME], residing at [ADDRESS] (“Agent”).
   c. Alternate Agent(s) (if any): [ALTERNATE AGENT NAME(S)] (each, an “Alternate Agent”).

2. Effective Date. This Durable Financial Power of Attorney (“Instrument”) is effective on [EFFECTIVE DATE] (the “Effective Date”) and shall remain in force as provided herein.

3. Consideration. In consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Principal hereby grants authority to Agent as set forth below.

4. Governing Law. This Instrument shall be governed by and construed in accordance with the California Probate Code and other applicable California law. See, e.g., Cal. Prob. Code §§ 4000–4545; execution requirements in § 4121; durability under § 4124.

[// GUIDANCE: Insert client/matter file number, internal draft ID, or other header metadata if needed.]

II. DEFINITIONS

For purposes of this Instrument, the following capitalized terms have the meanings set forth below:

“Accounting” – A written record of all receipts, disbursements, liabilities, and investments relating to the Principal’s property.
“Agent” – The person identified in Section I.1.b granted authority hereunder; includes any successor or co-agent acting pursuant to this Instrument.
“Assets under Management” – All cash, securities, real and personal property, contractual rights, and other property over which Agent has authority under this Instrument.
“Durable” – Having effect notwithstanding the subsequent incapacity of the Principal, as described in Cal. Prob. Code § 4124.
“Event of Default” – Any act or omission by Agent triggering remedies under Section VI.
“Incidental Authority” – Any authority reasonably necessary to effectuate the express powers granted herein.
“Principal” – The individual granting authority under this Instrument.
“Probate Court” – The Superior Court of California, [COUNTY] County, Probate Division, or any successor court of competent jurisdiction.
“Third Party” – Any individual or entity that in good-faith relies on a power granted under this Instrument.

III. OPERATIVE PROVISIONS

3.1 Appointment of Agent

Principal hereby appoints Agent as Principal’s true and lawful attorney-in-fact to act for the Principal and in Principal’s name, place, and stead, with respect to the matters described in this Instrument.

3.2 Grant of Authority

Subject to the limitations in Section V and the liability cap in Section VII, Agent is granted authority to engage in the following categories of transactions (collectively, “Granted Powers”):

1. Real Property. Purchase, sell, exchange, lease, manage, and encumber real estate.
2. Tangible Personal Property. Buy, sell, maintain, and insure goods, vehicles, and equipment.
3. Banking & Financial. Open, close, and manage deposit accounts; draw, endorse, and negotiate checks and other instruments.
4. Securities & Investments. Buy, sell, pledge, and otherwise manage stocks, bonds, mutual funds, and other securities.
5. Retirement Plans. Contribute to, withdraw from, and reallocate assets in IRAs, 401(k)s, and other qualified or non-qualified plans.
6. Government Benefits. Prepare, sign, and submit applications relating to Social Security, Medicare, and other public benefits.
7. Tax Matters. Prepare, sign, and file federal, state, and local tax returns; represent Principal before taxing authorities.
8. Business Interests. Operate, modify, or wind up interests in partnerships, LLCs, or corporations.
9. Safe-Deposit Boxes & Digital Assets. Access and control safe-deposit boxes, online accounts, and digital assets.
10. Personal & Family Maintenance. Provide for the support, care, and maintenance of Principal and Principal’s legal dependents.
11. Incidental Authority. Exercise Incidental Authority in connection with the foregoing.

[// GUIDANCE: Add or strike individual powers to fit client instructions; consider initialing specific paragraphs for emphasis.]

3.3 Durability

This Instrument is durable and shall not be affected by the subsequent incapacity of the Principal, as permitted under Cal. Prob. Code § 4124.

3.4 Effective & Termination Events

a. Immediate Effectiveness: This Instrument is effective immediately upon execution.
b. Termination:
i. Revocation by Principal pursuant to Section V.4;
ii. Death of Principal;
iii. Appointment of a conservator of the estate unless this Instrument is expressly preserved; or
iv. As otherwise provided by applicable law.

IV. REPRESENTATIONS & WARRANTIES

4.1 By Principal.
a. Capacity. Principal is at least eighteen (18) years old and has legal capacity to execute this Instrument.
b. Title. Principal lawfully owns or controls the Assets under Management.

4.2 By Agent (and each Alternate Agent upon assumption of authority).
a. Eligibility. Agent is not disqualified from acting as an attorney-in-fact under California law.
b. Fiduciary Duty. Agent will act in good faith, with due care, loyalty, and in Principal’s best interest.
c. No Conflict. Execution and performance hereof do not breach any existing duty or agreement of Agent.

4.3 Survival. All representations and warranties survive acceptance of authority and any partial performance.

V. COVENANTS & RESTRICTIONS

5.1 Affirmative Covenants of Agent.
a. Standard of Care. Exercise the care a prudent person would exercise in managing the property of another.
b. Record-Keeping. Maintain complete and accurate Accountings and provide them to Principal, court, or other authorized persons upon reasonable request.
c. Segregation of Assets. Keep Principal’s property separate from Agent’s own property.
d. Notifications. Notify Principal promptly of material transactions, litigation, or administrative proceedings involving Assets under Management.

5.2 Negative Covenants. Agent shall not:
a. Make gifts, loans, or transfers to self or others except as expressly authorized in writing by Principal.
b. Create or modify testamentary instruments.
c. Delegate authority except as expressly permitted under Cal. Prob. Code §§ 4261–4264.

5.3 Co-Agents & Successor Structure.
[CHOOSE ONE]
☐ Co-Agents must act jointly.
☐ Co-Agents may act independently.

5.4 Revocation Procedures.
Principal may revoke this Instrument in whole or in part by:
a. Delivering a signed and dated written notice to Agent and any Third Party known to be relying on it; and
b. Recording (optional but recommended) the revocation in the county where real property subject to this Instrument is located.
Revocation is effective upon receipt by Agent or, as to real property, upon recording, whichever is later.

[// GUIDANCE: Filing the revocation with the same entities that possess a copy of the POA minimizes reliance risk.]

VI. DEFAULT & REMEDIES

6.1 Events of Default. Each of the following constitutes an Event of Default:
a. Breach of fiduciary duty;
b. Misappropriation or commingling of Assets under Management;
c. Failure to provide a requested Accounting within thirty (30) days;
d. Conviction of a felony or crime involving dishonesty;
e. Incapacity, resignation, or death of Agent without acceptance by an Alternate Agent.

6.2 Notice & Cure. Principal (or a court-appointed representative) shall give written notice specifying the Event of Default. Agent shall have fifteen (15) days to cure, unless the breach is incapable of cure or involves misappropriation, in which case no cure period applies.

6.3 Remedies. Upon an Event of Default, Principal or any interested person may seek:
a. Temporary, preliminary, or permanent injunctive relief (preserved by Section VIII.4);
b. Accounting and restitution;
c. Removal of Agent;
d. Compensatory damages, including attorneys’ fees and costs as provided in Section VI.4.

6.4 Attorneys’ Fees & Costs. A prevailing party in any action to enforce this Instrument is entitled to reasonable attorneys’ fees and costs.

VII. RISK ALLOCATION

7.1 Indemnification by Agent.
Agent shall indemnify, defend, and hold harmless Principal and the estate of Principal from and against any and all losses, liabilities, claims, damages, or expenses arising out of Agent’s breach of fiduciary duty or violation of this Instrument.

7.2 Limitation of Liability.
Except for willful misconduct, gross negligence, or breach of fiduciary duty, Agent’s aggregate liability shall not exceed the monetary value of the Assets under Management at the time the cause of action arose.

7.3 Insurance.
[OPTIONAL] Agent shall maintain fiduciary liability insurance in a coverage amount not less than [$__] naming Principal as an additional insured.

7.4 Force Majeure.
Agent shall not be liable for failure to perform due to events beyond Agent’s reasonable control, including acts of God, governmental actions, or system failures, provided Agent acts with reasonable diligence to resume performance.

VIII. DISPUTE RESOLUTION

8.1 Governing Law.
All disputes shall be governed by California law without regard to conflict-of-laws principles.

8.2 Forum Selection.
Exclusive venue lies in the Superior Court of California, [COUNTY] County, Probate Division.

8.3 Limited Arbitration.
Any monetary dispute not exceeding [$_____] (exclusive of interest and attorneys’ fees) shall be submitted to binding arbitration under the California Arbitration Act (Cal. Code Civ. Proc. § 1280 et seq.). The arbitration award may be entered in the Probate Court.

8.4 Jury Waiver.
To the fullest extent permitted by law, the parties waive their right to trial by jury in any action arising out of or related to this Instrument, except where such waiver is prohibited or restricted by applicable law.

8.5 Injunctive Relief.
Nothing herein shall bar any party from seeking equitable or injunctive relief in Probate Court to compel fiduciary compliance.

IX. GENERAL PROVISIONS

9.1 Amendments & Waivers. Must be in writing, signed by Principal, and acknowledged in the manner required for execution of this Instrument.

9.2 Assignment. Agent may not assign rights or delegate duties except as expressly allowed under Section 5.2(c).

9.3 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the court is authorized to reform the Instrument to carry out the Principal’s intent.

9.4 Integration. This Instrument constitutes the entire understanding between the parties and supersedes all prior powers of attorney regarding the subject matter, except as expressly preserved herein.

9.5 Counterparts; Electronic Signatures. This Instrument may be executed in counterparts, each of which is deemed an original. Facsimile, PDF, and compliant electronic signatures constitute valid execution.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the Principal has executed this Durable Financial Power of Attorney on the Effective Date first above written.

Principal:

[PRINCIPAL LEGAL NAME]

Date: ____

Agent Acknowledgment:
I, [AGENT NAME], accept the appointment as Agent and agree to act in accordance with the terms of this Instrument and applicable law.

[AGENT NAME]

Date: ____

[Repeat acknowledgment blocks for any Alternate Agent.]

Notary Acknowledgment (California)

(Use California statutory form for individual acknowledgment; attach separate page if required.)

XI. STATUTORY NOTICES (CALIFORNIA SPECIFIC)

1. Notice to Person Executing Durable Power of Attorney.
   [Insert full text of Cal. Prob. Code § 4128 “Notice to Person Executing” or attach as separate exhibit.]

2. Notice to Attorney-in-Fact (Agent).
   [Insert full text of Cal. Prob. Code § 4129 “Notice to Attorney-in-Fact” or attach as separate exhibit.]

[// GUIDANCE: California strongly recommends, and some institutions require, inclusion of the statutory notices. Attach them verbatim to ensure compliance.]

END OF DOCUMENT