DURABLE FINANCIAL POWER OF ATTORNEY
(District of Columbia)
[// GUIDANCE: This template is intended to comply with the District of Columbia Uniform Power of Attorney Act, D.C. Code §§ 21-2601.01 et seq. Counsel should confirm no subsequent statutory amendments affect execution requirements before finalizing.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Grant of Authority
- Agent Duties & Standards of Conduct
- Compensation & Reimbursement
- Liability; Indemnification; Cap on Exposure
- Acceptance by Agent
- Nomination of Guardian or Conservator (Optional)
- Co-Agents & Successor Agents (Optional)
- Reliance & Protection of Third Parties
- Revocation & Termination
- Governing Law; Forum Selection; Dispute Resolution
- Miscellaneous
- Execution Block
1. DOCUMENT HEADER
1.1 Parties. This Durable Financial Power of Attorney (“Power”) is executed by [PRINCIPAL NAME], residing at [PRINCIPAL ADDRESS] (“Principal”), in favor of [AGENT NAME], residing at [AGENT ADDRESS] (“Agent”).
1.2 Effective Date. This Power is effective on [EFFECTIVE DATE] and shall be durable within the meaning of D.C. Code § 21-2601.04; it shall continue in force notwithstanding the Principal’s subsequent incapacity.
1.3 Consideration. The mutual promises herein constitute sufficient consideration, although none is required under applicable law for validity.
1.4 Purpose. Principal intends to delegate broad financial management authority to Agent, subject to the limitations and fiduciary safeguards set forth below.
2. DEFINITIONS
For ease of reference, capitalized terms are defined alphabetically below.
“Act” means the District of Columbia Uniform Power of Attorney Act, D.C. Code §§ 21-2601.01 et seq.
“Assets Under Management” means all property subject to Agent’s authority at any given time.
“Durable” has the meaning assigned in D.C. Code § 21-2601.04.
“Hot Powers” means those powers enumerated in § 21-2601.04(c) requiring express language (e.g., gifting, beneficiary designations).
“Incapacity” means inability to manage property, finances, or business affairs, as defined in § 21-2601.04(a).
“Liability Cap” has the meaning given in Section 6.3.
“Third Party” means any person or entity that in good faith accepts this Power.
3. GRANT OF AUTHORITY
3.1 General Grant. Principal hereby grants Agent full power to act for Principal with respect to all property, financial, and business matters, subject to the Act and this Power.
3.2 Specific Enumerated Powers. Without limiting the general grant, Agent may:
a. Banking—open, close, and manage deposit accounts.
b. Real Property—buy, sell, lease, encumber, or manage real property.
c. Tangible Personal Property—buy, sell, lease, or pledge tangible assets.
d. Securities—transfer, trade, or pledge securities.
e. Retirement Plans—manage and allocate plan assets.
f. Taxes—prepare, sign, and file returns; receive refunds.
g. Insurance—procure or modify policies.
h. Claims & Litigation—initiate, defend, or settle claims.
i. Digital Assets—access and manage electronic records.
3.3 Hot Powers (Express Authorization). Agent is expressly authorized to:
a. Make gifts not exceeding the annual federal gift-tax exclusion to any individual per calendar year.
b. Create, fund, amend, or terminate revocable trusts for the benefit of Principal.
c. Change beneficiary designations on non-probate assets, provided such changes do not materially alter Principal’s existing estate plan.
[// GUIDANCE: Remove or tailor any Hot Power inconsistent with client intent.]
3.4 Delegation. Agent may not delegate authority except to a licensed professional (e.g., attorney, CPA) for ministerial tasks and only under Agent’s supervision.
4. AGENT DUTIES & STANDARDS OF CONDUCT
4.1 Fiduciary Standard. Agent shall act in good faith, within the scope of authority, in the Principal’s best interest, and in accordance with the purposes of this Power.
4.2 Statutory Duties Not Waivable (see § 21-2601.09(b)). Agent must:
a. Act loyally for the Principal’s benefit;
b. Keep records of all receipts, disbursements, and transactions;
c. Preserve Principal’s estate plan, to the extent actually known by Agent.
4.3 Permissible Modifications. Principal hereby:
a. Authorizes reasonable Agent compensation (Section 5.1); and
b. Exculpates Agent from liability except for willful misconduct or gross negligence (Section 6.1).
5. COMPENSATION & REIMBURSEMENT
5.1 Compensation. Agent is entitled to reasonable compensation commensurate with services rendered, payable quarterly from Assets Under Management.
5.2 Expense Reimbursement. Agent is entitled to prompt reimbursement for reasonable expenses advanced on Principal’s behalf.
6. LIABILITY; INDEMNIFICATION; CAP ON EXPOSURE
6.1 Exculpation. Agent shall not be liable for any act or omission made in good faith and with reasonable care, except for willful misconduct or gross negligence.
6.2 Indemnification. Principal shall indemnify and hold Agent harmless from any claim, loss, or expense, including reasonable attorneys’ fees, arising from lawful acts performed under this Power, except to the extent caused by Agent’s willful misconduct or gross negligence.
6.3 Liability Cap. Agent’s aggregate liability to Principal and Principal’s estate shall not exceed the total Assets Under Management at the time the cause of action accrues (“Liability Cap”).
[// GUIDANCE: Liability caps in fiduciary documents are subject to judicial scrutiny; confirm enforceability under current D.C. law.]
7. ACCEPTANCE BY AGENT
By signing below, Agent accepts the appointment, acknowledges fiduciary duties under the Act, and agrees to submit to the jurisdiction of the Probate Division of the Superior Court of the District of Columbia for any proceeding relating to this Power.
8. NOMINATION OF GUARDIAN OR CONSERVATOR (Optional)
Should a court find it necessary to appoint a guardian or conservator, Principal nominates [NOMINEE NAME]. The Agent named herein shall have priority for appointment.
9. CO-AGENTS & SUCCESSOR AGENTS (Optional)
9.1 Co-Agents. If more than one Agent serves concurrently, each may exercise power independently unless otherwise indicated in Schedule 1.
9.2 Successor Agents. If the Agent resigns, dies, becomes incapacitated, or refuses to serve, [SUCCESSOR AGENT NAME] shall serve as successor Agent.
10. RELIANCE & PROTECTION OF THIRD PARTIES
10.1 Good-Faith Reliance. A Third Party may rely on the genuineness of this Power or on any certification by Agent.
10.2 Hold-Harmless. Principal agrees that any Third Party dealing in good faith with Agent shall be held harmless and protected to the full extent of the law.
10.3 Certification. Agent may execute a certification pursuant to § 21-2601.14 summarizing relevant powers for presentation to Third Parties.
11. REVOCATION & TERMINATION
11.1 Revocation by Principal. Principal may revoke this Power in whole or in part by:
a. Executing a written revocation; or
b. Delivering written notice of revocation to Agent and, where feasible, to known Third Parties.
11.2 Automatic Termination. This Power terminates upon:
a. Principal’s death;
b. Revocation under Section 11.1;
c. Complete judicial revocation; or
d. As otherwise provided by law.
11.3 Agent Resignation. Agent may resign by giving 30 days’ written notice to Principal (or, if incapacitated, to the successor Agent or to the Probate Division).
12. GOVERNING LAW; FORUM SELECTION; DISPUTE RESOLUTION
12.1 Governing Law. This Power and all non-contractual obligations arising out of or related hereto shall be governed by the laws of the District of Columbia, without regard to its conflict-of-laws rules.
12.2 Forum Selection. The parties consent to exclusive jurisdiction and venue in the Probate Division of the Superior Court of the District of Columbia.
12.3 Limited Arbitration. Except for petitions for injunctive or emergency relief, any dispute between Principal (or Principal’s estate) and Agent arising from this Power shall be submitted to binding arbitration under the Commercial Rules of the American Arbitration Association, seated in Washington, D.C.
12.4 Jury-Trial Waiver. To the extent a matter is adjudicated in court, the parties knowingly waive the right to a jury trial, subject to availability and enforceability under D.C. law.
12.5 Injunctive Relief. Nothing herein limits the court’s power to grant fiduciary or equitable remedies, including injunctions against misuse of authority.
13. MISCELLANEOUS
13.1 Amendment. Principal may amend this Power only by written instrument executed with the formalities required for an original power.
13.2 Severability. Any invalid provision shall be severed, and the remainder enforced.
13.3 Integration. This document constitutes the entire Power of Attorney, superseding all prior powers for financial matters.
13.4 Counterparts; Electronic Signatures. This Power may be executed in counterparts and by electronic signature, each of which is deemed an original.
14. EXECUTION BLOCK
Executed as a sealed instrument under District of Columbia law on the date first written above.
PRINCIPAL
[PRINCIPAL NAME], Principal
AGENT
[AGENT NAME], Agent
[// GUIDANCE: If Co-Agents or Successor Agents are appointed, replicate signature blocks as needed.]
ACKNOWLEDGMENT
District of Columbia, ss:
On this ___ day of ____, 20__, before me, the undersigned Notary Public, personally appeared [PRINCIPAL NAME], known to me (or satisfactorily proven) to be the person whose name is subscribed to the foregoing instrument, and acknowledged that (s)he executed the same for the purposes therein contained.
Witness my hand and official seal.
Notary Public
My commission expires: ____
SCHEDULE 1 – CO-AGENT AUTHORITY (Optional)
[// GUIDANCE: Specify whether Co-Agents must act jointly, by majority, or independently.]
[// GUIDANCE: Practitioners should attach any desired banking forms, third-party certifications, or special instructions as additional schedules. Ensure delivery of copies to all relevant financial institutions immediately upon execution to avoid reliance issues.]