DURABLE FINANCIAL POWER OF ATTORNEY

(Commonwealth of Kentucky)

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

This Durable Financial Power of Attorney (the “Agreement”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

1. [PRINCIPAL FULL LEGAL NAME], residing at [PRINCIPAL ADDRESS] (the “Principal”); and
2. [AGENT FULL LEGAL NAME], residing at [AGENT ADDRESS] (the “Agent”).

Recitals
A. Principal desires to appoint Agent to act on Principal’s behalf with respect to the financial matters herein described.
B. This instrument is intended to be a “durable power of attorney” pursuant to the Kentucky Uniform Power of Attorney Act, Ky. Rev. Stat. Ann. Chapter 457, and shall remain in effect notwithstanding the subsequent incapacity of the Principal.
C. Consideration for Agent’s acceptance of such appointment is acknowledged as legally sufficient.

II. DEFINITIONS

For purposes of this Agreement, capitalized terms have the meanings set forth below. Alphabetical cross-references apply throughout.

“Assets Under Management” means the aggregate fair-market value of all assets that Agent is authorized to control or manage under this Agreement at the time the liability or loss arises.

“Co-Agent” means any person appointed to serve concurrently with the Agent pursuant to Section III.D.

“Durable” means not terminated by the Principal’s incapacity.

“Fiduciary Duty” means the duty of loyalty, prudence, and good faith owed by the Agent to the Principal under applicable law.

“Governing Law” has the meaning provided in Section VIII.A.

“Incapacity” means the Principal’s inability to manage property or business affairs, whether determined by physician certification or judicial finding.

“Limited Arbitration” has the meaning provided in Section VIII.C.

“Probate Court” means the appropriate district of the Kentucky state probate court having jurisdiction under Ky. Rev. Stat. Ann. Title 34.

“Revocation” means a written instrument, executed with the formalities required for a power of attorney, that expressly terminates this Agreement.

“Successor Agent” means any person designated in Section III.E to serve when the initial Agent is unable or unwilling to act.

// GUIDANCE: Add additional defined terms specific to any specialized authority (e.g., “Business Entity,” “Digital Asset,” etc.) if needed.

III. OPERATIVE PROVISIONS

A. Grant of Authority

The Principal hereby appoints the Agent, granting full authority to act in the Principal’s name for the purposes initialed below. Initialing a line confirms the grant; leaving it blank withholds authority.

[// GUIDANCE: Insert additional Kentucky-specific statutory powers if the Principal requires, such as “Health Care Billing & Payment” (financial only, not medical decision-making).]

B. Special Instructions (Optional)

[PLACEHOLDER for any express limitations, expansion of powers, or springing (contingent) effectiveness provisions.]

C. Durability

This power of attorney shall not be affected by the subsequent incapacity or mental incompetence of the Principal.

D. Co-Agents

[ ] Check if applicable. If checked, Co-Agents shall act (choose one):
1. □ Jointly 2. □ Independently 3. □ Majority Rule.
Failure of one Co-Agent to act shall not invalidate actions of the others unless otherwise stated herein.

E. Successor Agents

1. First Successor Agent: [SUCCESSOR AGENT #1 NAME]
2. Second Successor Agent: [SUCCESSOR AGENT #2 NAME]
   Successor Agents shall serve in the order listed and have the same authority as the initial Agent.

F. Acceptance by Agent

By signing in Section X, the Agent acknowledges (i) the fiduciary nature of the appointment, (ii) the obligation to act in good faith, and (iii) the duty to keep records and provide accountings on reasonable request.

G. Compensation & Reimbursement

Agent is entitled to (choose one):
□ Reasonable compensation; □ No compensation.
Agent is entitled to reimbursement for all reasonable out-of-pocket expenses incurred in good faith.

H. Record-Keeping

Agent shall maintain contemporaneous, complete, and accurate records for all transactions undertaken on the Principal’s behalf for not less than seven (7) years, and shall produce such records upon request by the Principal, the Probate Court, or a legally authorized third party.

I. Delegation

Agent may delegate discretionary authority to qualified professionals (e.g., attorneys, CPAs, investment advisers) but remains responsible for the selection and oversight of such delegates.

J. Revocation

1. Principal may revoke this Agreement at any time by executing and delivering a Revocation to the Agent and any third parties known to rely on the Agreement.
2. Revocation is effective upon actual receipt by the Agent or as otherwise required under Kentucky law.
3. The filing of a guardianship or conservatorship shall not by itself revoke this Agreement unless expressly ordered by the Probate Court.

K. Termination

This Agreement terminates upon the earliest of:
a. Revocation;
b. Death of the Principal;
c. Resignation, death, or incapacity of the last-serving Agent without a successor;
d. As otherwise provided by Chapter 457 or other applicable law.

IV. REPRESENTATIONS & WARRANTIES

1. Principal represents that:
   a. Principal is at least eighteen (18) years of age and of sound mind;
   b. No other power of attorney inconsistent with this Agreement is in force, or if so, it is identified in Exhibit A.

2. Agent represents that:
   a. Agent is at least eighteen (18) years of age;
   b. Agent is not disqualified from serving under any court order or statutory restriction;
   c. Agent will exercise the authority granted herein only in the Principal’s best interests.

All representations and warranties survive the execution and any revocation until final settlement of Agent’s accounts.

V. COVENANTS & RESTRICTIONS

1. Fiduciary Standard. Agent shall act loyally for the benefit of the Principal, avoid conflicts of interest, and keep the Principal’s property separate from the Agent’s own.
2. Compliance. Agent shall comply with all applicable federal and Kentucky laws, including any bonding, licensing, or reporting obligations.
3. Notice of Incapacity. Upon learning of the Principal’s death or incapacity, Agent shall cease acting except as necessary to protect Principal’s interests until lawful authority is clarified.
4. Bond. □ Required □ Waived. If required, bond shall be in the penal sum of [BOND AMOUNT].

VI. DEFAULT & REMEDIES

A. Events of Default

1. Breach of Fiduciary Duty.
2. Misappropriation or willful misconduct.
3. Failure to provide records within thirty (30) days after written demand.

B. Notice & Cure

The Principal or Successor Agent shall provide written notice specifying the default. Agent has ten (10) days to cure, unless the breach is not reasonably curable or injunctive relief is necessary to prevent imminent harm.

C. Remedies

1. Suspension or termination of Agent’s authority.
2. Mandatory accounting before the Probate Court.
3. Recovery of actual damages, fees, and costs.
4. Injunctive or equitable relief to prevent further harm.

Attorney’s Fees. Prevailing party is entitled to reasonable attorney’s fees, costs, and expenses incurred in enforcing this Agreement.

VII. RISK ALLOCATION

A. Indemnification

Principal shall indemnify and hold harmless Agent from any loss, liability, or expense (including reasonable attorney’s fees) arising out of lawful acts performed in good faith under this Agreement, except for losses resulting from Agent’s breach of Fiduciary Duty, gross negligence, or willful misconduct.

B. Limitation of Liability

Except for breaches of Fiduciary Duty, Agent’s aggregate liability shall not exceed the lesser of:
1. The total Assets Under Management at the time of the act or omission; or
2. The amount actually recovered under any applicable insurance coverage.

C. Insurance

Agent shall maintain, at Principal’s expense, errors & omissions or similar fiduciary insurance with minimum limits of [INSURANCE AMOUNT], naming Principal as an additional insured.

D. Force Majeure

Agent shall not be liable for failure to act when such failure results from events beyond Agent’s reasonable control, including natural disasters, war, or changes in applicable law that render performance illegal.

VIII. DISPUTE RESOLUTION

A. Governing Law

This Agreement and all acts hereunder are governed by and construed in accordance with the laws of the Commonwealth of Kentucky, without regard to conflict-of-laws principles.

B. Forum Selection

Subject to Section VIII.C, the parties submit to exclusive jurisdiction in the state Probate Court for all proceedings arising under or relating to this Agreement.

C. Limited Arbitration

1. Scope. Any monetary dispute not exceeding [ARBITRATION THRESHOLD] shall be resolved by binding arbitration administered by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules.
2. Location. Arbitration shall take place in [COUNTY], Kentucky.
3. Exclusions. Claims seeking injunctive relief for breach of Fiduciary Duty are exempt and shall be brought in the Probate Court.

D. Jury Waiver

To the extent permitted by Kentucky law, each party waives the right to trial by jury for any claim arising out of this Agreement. If such waiver is deemed unenforceable, the matter shall proceed without prejudice to any party’s substantive rights.

E. Injunctive Relief

Nothing in this Section shall limit the right of any interested party—including Principal, Successor Agent, or court-appointed fiduciary—to seek temporary, preliminary, or permanent injunctive relief for breach of Fiduciary Duty.

IX. GENERAL PROVISIONS

1. Amendment. This Agreement may be amended only by a writing executed with the same formalities as this Agreement.
2. Severability. If any provision is held invalid, the remaining provisions shall remain in full force to the maximum extent permitted by law.
3. Assignment. Agent may not assign rights or delegate duties except as expressly permitted herein.
4. Entire Agreement. This instrument constitutes the entire agreement and supersedes all prior powers of attorney concerning the subject matter hereof, except as expressly preserved in Exhibit A.
5. Counterparts. This Agreement may be executed in multiple counterparts, each deemed an original and together constituting one instrument.
6. Electronic Signatures. Signatures transmitted electronically (including via DocuSign® or PDF) are deemed originals for all purposes.

X. EXECUTION BLOCK

Principal

Signature of Principal: [PRINCIPAL NAME]
Date: ____

Witnesses (optional but recommended)

1. _____ Date: ____
2. _____ Date: ____

Acknowledgment

State of Kentucky )
County of ____) ss.

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

Notary Public
My commission expires: __

Agent Acceptance

I, [AGENT NAME], hereby accept the appointment as Agent and acknowledge my fiduciary obligations under this Durable Financial Power of Attorney.

Signature of Agent
Date: ____

(Notary acknowledgment for Agent is optional unless required for recordation of real property instruments.)

[// GUIDANCE:
1. Customize Exhibit A for any prior powers of attorney to remain in force (e.g., health-care directives).
2. For real property transactions, attach a legal description and record this instrument (with the requisite statutory recording tax) in the county clerk’s office where the property is located.
3. For “springing” effectiveness, replace Section III.B with clear triggering conditions (e.g., two physician affidavits).
4. Retain an executed original in a secure location and provide certified copies to financial institutions as needed.
5. Confirm that any jury-waiver or arbitration provision is consistent with current Kentucky case law before client execution.]