DURABLE FINANCIAL POWER OF ATTORNEY

(State of Hawaiʻi – Uniform Power of Attorney Act, Haw. Rev. Stat. § 551E-1 et seq.)

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

I. DOCUMENT HEADER

1. Parties
   1.1 Principal: [PRINCIPAL FULL LEGAL NAME], residing at [PRINCIPAL ADDRESS].
   1.2 Agent: [PRIMARY AGENT FULL LEGAL NAME], residing at [AGENT ADDRESS].
   1.3 Successor Agent(s) (in order of priority, if any):
   (a) [SUCCESSOR AGENT 1];
   (b) [SUCCESSOR AGENT 2].

2. Recitals
   WHEREAS, Principal desires to grant Agent authority to act on Principal’s behalf with respect to financial matters under the Hawaiʻi Uniform Power of Attorney Act (“UPOAA”); and
   WHEREAS, Principal intends this Power of Attorney to be durable, surviving Principal’s subsequent incapacity;

NOW, THEREFORE, in consideration of the mutual promises herein and other good and valuable consideration, the sufficiency of which is acknowledged, Principal hereby states as follows:

3. Effective Date
   This Durable Financial Power of Attorney (“Agreement”) is effective on the date of execution set forth in Section X.

4. Governing Law
   This Agreement and all acts taken under it shall be governed by and construed in accordance with the laws of the State of Hawaiʻi, including Haw. Rev. Stat. Chapter 551E (“state_power_of_attorney_law”).

II. DEFINITIONS

For ease of reference, capitalized terms have the meanings assigned below (alphabetical):

“Accounting” – A written record of all receipts, disbursements, and actions taken by Agent on behalf of Principal, prepared in accordance with Section V.

“Assets Under Management” – All property, accounts, and contract rights subject to Agent’s authority at any given time.

“Durable” – Having effect notwithstanding Principal’s subsequent incapacity, consistent with Haw. Rev. Stat. § 551E-2.

“Fiduciary Duties” – The duties of loyalty, care, and impartiality imposed on Agent under Haw. Rev. Stat. § 551E-114 and further detailed in Section V.

“Limited Arbitration” – Binding arbitration limited to monetary disputes not exceeding the then-current jurisdictional limit of the circuit court’s summary procedure, as further described in Section VIII.

“Probate Court” – The Circuit Court of the State of Hawaiʻi sitting in probate.

“Revocation Instrument” – A written notice executed by Principal (or legal representative) expressly revoking this Agreement, substantially in the form attached hereto as Exhibit A.

III. OPERATIVE PROVISIONS

1. Grant of Authority
   1.1 Principal hereby appoints Agent to act for Principal in all matters described in Section III.2.
   1.2 Authority granted is general and incorporates, by reference, all powers enumerated in Haw. Rev. Stat. § 551E-34 unless expressly withheld.

2. Enumerated Powers of Agent
   Subject to Section III.3, Agent may:
   (a) Real Property – Buy, sell, lease, encumber, and manage real estate;
   (b) Tangible Personal Property – Buy, sell, and manage personal property;
   (c) Banking & Financial – Open, close, and operate accounts;
   (d) Insurance & Annuities;
   (e) Estates, Trusts & Beneficiary Transactions;
   (f) Claims & Litigation (excluding actions against Agent for breach);
   (g) Personal & Family Maintenance Expenditures;
   (h) Tax Matters;
   (i) Digital Assets (to the fullest extent permitted by law);
   (j) [OTHER SPECIFIC POWER GRANTED];
   (k) ALL OTHER LAWFUL ACTS reasonable and necessary to carry out the foregoing.

3. Limitations on Powers
   (i) NO authority to create/amend Principal’s will.
   (ii) NO authority to make gifts exceeding the annual federal gift-tax exclusion per donee absent express authorization here: [GIFTING AUTHORIZATION YES/NO].
   (iii) NO self-dealing except as specifically authorized in Section V.3.

4. Acceptance by Agent
   Agent’s first exercise of any authority constitutes acceptance of appointment and of the Fiduciary Duties set forth herein.

5. Duration
   This Agreement remains in effect until the earliest of:
   (a) Principal’s death;
   (b) Revocation pursuant to Section III.6;
   (c) Judicial termination.

6. Revocation Procedures
   6.1 Principal may revoke by executing a Revocation Instrument and delivering same to Agent and all known third parties relying on this Agreement.
   6.2 Revocation is effective upon receipt by Agent.
   6.3 Principal should record the Revocation Instrument in the Bureau of Conveyances if this Agreement has been recorded. [// GUIDANCE: Recording is advisable when real property powers are exercised.]

IV. REPRESENTATIONS & WARRANTIES

1. Principal
   (a) Has legal capacity to execute this Agreement.
   (b) Title to all Assets Under Management is free of undisclosed liens.

2. Agent
   (a) Is not disqualified under Haw. Rev. Stat. § 551E-113.
   (b) Will comply with all Fiduciary Duties.
   (c) Will segregate Principal’s funds from Agent’s own.

3. Survival
   The representations and warranties herein survive acceptance of appointment and termination to the extent necessary to resolve any dispute arising hereunder.

V. COVENANTS & RESTRICTIONS

1. Affirmative Covenants of Agent
   (a) Act in good faith and in Principal’s best interest.
   (b) Keep complete and contemporaneous Accountings.
   (c) Provide Accountings to Principal or legal representative upon written request, but not more than once every [90] days.

2. Negative Covenants of Agent
   (a) No commingling of assets.
   (b) No delegation of authority except as permitted under Haw. Rev. Stat. § 551E-32.
   (c) No renunciation without thirty (30) days’ prior written notice to Principal.

3. Self-Dealing Restriction
   Except for customary compensation and reimbursement, Agent shall not enter transactions with Principal’s estate that confer a benefit on Agent or Agent’s affiliates unless:
   (i) specifically authorized in writing here: [SELF-DEALING AUTHORIZED YES/NO]; and
   (ii) fair market value consideration is paid.

4. Notice & Cure
   Agent shall promptly notify Principal in writing upon learning of any potential breach of Fiduciary Duties and shall have fifteen (15) days to cure, unless irreparable harm would result.

VI. DEFAULT & REMEDIES

1. Events of Default
   (a) Breach of Fiduciary Duties.
   (b) Willful misconduct, gross negligence, or fraud.
   (c) Failure to provide requested Accounting within required timeframe.

2. Remedies
   (i) Suspension or termination of Agent’s authority by Principal or by Probate Court.
   (ii) Surcharge of Agent’s compensation.
   (iii) Equitable relief, including injunctive relief (see Section VIII.4).
   (iv) Recovery of damages, costs, and reasonable attorney fees.

3. Graduated Consequences
   Minor, non-material breaches cured within the notice period shall not constitute an Event of Default. Material breaches trigger immediate remedies.

VII. RISK ALLOCATION

1. Indemnification by Agent
   Agent shall indemnify, defend, and hold harmless Principal and Principal’s estate from and against all claims, losses, and liabilities arising out of Agent’s breach of Fiduciary Duties.

2. Limitation of Agent Liability
   Absent breach of Fiduciary Duties, Agent’s liability shall not exceed the value of Assets Under Management at the time of the act or omission giving rise to the claim.

3. Insurance
   Agent shall maintain, at Agent’s expense, errors & omissions insurance with limits not less than [$$ AMOUNT] per claim.

4. Force Majeure
   Agent is excused from performance during events beyond reasonable control (e.g., natural disasters, war, governmental action) but shall resume performance when feasible.

VIII. DISPUTE RESOLUTION

1. Governing Law
   Hawaiʻi law governs all disputes.

2. Forum Selection
   Exclusive jurisdiction resides in the Probate Court.

3. Limited Arbitration
   Monetary disputes ≤ [$100,000] may (but are not required to) be submitted to binding arbitration administered by Dispute Prevention & Resolution, Inc., Honolulu, under its expedited procedures. The arbitrator shall not award punitive damages.

4. Injunctive Relief
   Nothing herein limits a party’s right to seek temporary, preliminary, or permanent injunctive relief in the Probate Court to enforce Fiduciary Duties.

5. Jury Waiver
   To the extent permitted under Haw. Const. art. I, § 13 and applicable statutes, the parties knowingly waive trial by jury for any claim arising hereunder; provided that such waiver shall be ineffective if Hawaii law or court rule precludes it.

IX. GENERAL PROVISIONS

1. Amendment & Waiver
   Must be in a signed writing by Principal (or legal representative) and acknowledged. No waiver of any provision shall be deemed a waiver of any other provision.

2. Assignment & Delegation
   Neither party may assign rights or delegate duties, except as expressly allowed under the UPOAA.

3. Successors & Assigns
   Binds and inures to the benefit of Principal, Agent, and their respective heirs, successors, and permitted assigns.

4. Severability
   Invalidity of any provision shall not affect the remainder, and the invalid provision shall be reformed to the minimum extent necessary.

5. Integration
   This document constitutes the entire understanding regarding the subject matter and supersedes all prior powers of attorney except those expressly preserved in writing.

6. Counterparts & Electronic Signatures
   May be executed in counterparts and via electronic signature technology compliant with Hawaiʻi Uniform Electronic Transactions Act.

X. EXECUTION BLOCK

Executed on this _ day of _, 20__.

PRINCIPAL

[PRINCIPAL FULL LEGAL NAME]
SSN (last 4 digits): -_-__

State of Hawaiʻi )
) ss.
County of ______)

On this _ day of _, 20__, before me, the undersigned Notary Public, personally appeared [PRINCIPAL NAME], who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to this instrument, and acknowledged that he/she executed the same for the purposes therein contained.

Notary Public, State of Hawaiʻi
My commission expires: ____

AGENT ACCEPTANCE

I, [AGENT FULL LEGAL NAME], accept appointment as Agent and agree to be bound by all Fiduciary Duties and terms herein.

____ Date: _
[AGENT NAME]

OPTIONAL WITNESS ATTESTATION (recommended)

Witness #1: ____ Date: _
Witness #2: ____ Date: _

[// GUIDANCE: Two disinterested adult witnesses or notarization alone satisfies Haw. Rev. Stat. § 551E-3(a). Use both for additional evidentiary weight.]

EXHIBIT A – FORM OF REVOCATION INSTRUMENT

REVOCATION OF DURABLE FINANCIAL POWER OF ATTORNEY
I, [PRINCIPAL NAME], hereby revoke in its entirety the Durable Financial Power of Attorney executed on _.
Signed: __ Date: _
Acknowledged before me this day of _, 20_.
_______ Notary Public

[// GUIDANCE:
1. Customize bracketed fields, especially powers to be withheld or expanded.
2. Consider recording in the Bureau of Conveyances if real property powers will be used.
3. Keep a certified copy with each financial institution to avoid acceptance delays.
4. Review insurance requirements and liability cap in light of asset size.
]