FINANCIAL POWER OF ATTORNEY (DURABLE) – STATE OF MARYLAND

[// GUIDANCE: This comprehensive template conforms to the Maryland Uniform Power of Attorney Act, Md. Code Ann., Est. & Trusts Title 17 (the “Act”). All bracketed items must be customized prior to execution.]

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 & Acknowledgments

I. DOCUMENT HEADER

1.1 Title.
FINANCIAL POWER OF ATTORNEY (DURABLE)

1.2 Parties.
a. “Principal”: [FULL LEGAL NAME], residing at [ADDRESS].
b. “Agent”: [FULL LEGAL NAME], residing at [ADDRESS].
c. “Alternate Agent(s)” (if any): [NAME(S) & ADDRESS(ES)].

1.3 Effective Date.
This instrument becomes effective on [SELECT ONE:
(i) the date of execution (“Immediate”); OR
(ii) the date on which the Principal is determined to be incapacitated as certified in writing by ___ licensed physicians (“Springing”).]

1.4 Durability Statement.
Pursuant to the Act, this Power of Attorney shall not be affected by the subsequent disability or incapacity of the Principal.

1.5 Recitals.
WHEREAS, the Principal desires to appoint an Agent to manage the Principal’s property and financial affairs; and
WHEREAS, the Agent is willing to accept such appointment and to act in a fiduciary capacity;
NOW, THEREFORE, the Principal hereby grants this Financial Power of Attorney on the terms set forth below.

II. DEFINITIONS

For purposes of this instrument, the following capitalized terms have the meanings assigned below. Terms defined in a singular form include the plural and vice-versa.

1. “Act” – Maryland Uniform Power of Attorney Act, Md. Code Ann., Est. & Trusts Title 17, as amended from time to time.
2. “Assets Under Management” – All property, accounts, and interests subject to the Agent’s authority hereunder.
3. “Durable” – Surviving the Principal’s incapacity, in accordance with § 17-___ of the Act.
4. “Fiduciary Remedies” – Equitable relief, including accounting, surcharge, removal, or injunction.
5. “Incapacity” – The inability of the Principal to manage property or business affairs, determined in accordance with Section III.4.
6. “Limited Arbitration” – Arbitration confined to disputes specifically identified in Section VIII.3.
7. “Probate Court” – The Orphans’ Court or Circuit Court acting in probate jurisdiction in [COUNTY], Maryland.
8. “Revocation Notice” – A written instrument revoking this Power of Attorney, executed with the same formalities as this document and delivered in accordance with Section IX.3.

[// GUIDANCE: Add or delete defined terms to align with customized authority granted.]

III. OPERATIVE PROVISIONS

3.1 Appointment of Agent.
The Principal hereby appoints the Agent as the Principal’s true and lawful attorney-in-fact to act for the Principal as provided herein.

3.2 Grant of Authority.
Subject to the limitations in Section 3.3, the Agent is authorized to perform any act the Principal could perform with respect to property, financial, or business matters, including but not limited to:

a. Real property transactions;
b. Tangible personal property transactions;
c. Banking and financial institution transactions;
d. Safe-deposit box access;
e. Lending or borrowing;
f. Business operation transactions;
g. Insurance and annuity transactions;
h. Estate, trust, and beneficiary transactions;
i. Claims and litigation;
j. Personal and family maintenance;
k. Benefits from governmental programs or civil/military service;
l. Retirement plan transactions;
m. Tax matters;
n. Digital assets management;
o. Charitable gifts within annual federal gift-tax exclusion limits;
p. [OTHER SPECIFIC POWERS, IF ANY].

3.3 Limitations on Authority.
a. The Agent may not create, modify, or revoke a Will, Codicil, or testamentary substitute.
b. The Agent shall not make self-dealing transfers except as expressly authorized in Schedule A.
c. Any delegation of authority by the Agent must comply with Section 5.3.

3.4 Determination of Incapacity (Springing Powers Only).
Incapacity shall be established by written certification from [NUMBER] independent, licensed physicians, each concluding that the Principal is unable to manage property or business affairs.

3.5 Acceptance by Agent.
The Agent shall evidence acceptance by signing the Execution Block and thereby agrees to act in accordance with this instrument and the Act.

3.6 Successor & Co-Agents.
If the Agent resigns, is removed, or is unable to serve, the next-listed Alternate Agent shall succeed. Co-Agents, if appointed, must act jointly unless Schedule B authorizes severally.

IV. REPRESENTATIONS & WARRANTIES

4.1 By Principal.
a. Legal Capacity: The Principal is of sound mind and over eighteen (18) years of age.
b. Ownership: The Principal has the right to grant the powers conveyed herein.

4.2 By Agent.
a. Eligibility: The Agent is not disqualified under the Act.
b. Fiduciary Duty: The Agent shall act in good faith, within the scope of granted authority, and in the Principal’s best interest.
c. No Conflicts: The Agent has disclosed any actual or potential conflicts of interest on Schedule C.

4.3 Survival.
The representations and warranties in this Section survive acceptance of the appointment and any termination of the Agent’s authority.

V. COVENANTS & RESTRICTIONS

5.1 Record-Keeping.
The Agent shall maintain contemporaneous records of all receipts, disbursements, and significant actions, and shall provide an accounting to the Principal, a court, or a successor agent upon written request within thirty (30) days.

5.2 Segregation of Assets.
The Agent shall keep the Principal’s property separate from the Agent’s own property, except for authorized commingling in brokerage or investment accounts clearly titled in the Principal’s name, FBO the Agent.

5.3 Delegation.
The Agent may delegate ministerial duties but may not delegate discretionary fiduciary decisions absent prior written consent of the Principal or court order.

5.4 Notice Obligations.
The Agent shall promptly notify the Principal, any Co-Agent, and any Successor Agent of:
a. Intention to resign (≥30 days’ written notice);
b. Knowledge of any event affecting authority (e.g., Principal’s death, revocation, bankruptcy).

5.5 Compliance with Law.
The Agent shall comply with all applicable federal and state laws, including anti-money-laundering regulations and tax reporting obligations.

VI. DEFAULT & REMEDIES

6.1 Events of Default.
a. Breach of fiduciary duty;
b. Failure to account within required timeframe;
c. Self-dealing without express authorization;
d. Incapacity, resignation, or death of the Agent without succession.

6.2 Cure Period.
The Agent shall have fifteen (15) days after receipt of written notice of default to cure, except where irreparable harm would result.

6.3 Remedies.
Upon default, any interested person (as defined in the Act) may seek:
a. Suspension or removal of the Agent;
b. Fiduciary Remedies, including surcharge and disgorgement;
c. Compensatory damages;
d. Attorneys’ fees and costs.

VII. RISK ALLOCATION

7.1 Indemnification of Agent.
The Principal shall indemnify and hold harmless the Agent from any claim, loss, or expense incurred in good-faith performance of duties, except to the extent arising from the Agent’s gross negligence, willful misconduct, or bad faith.

7.2 Limitation of Liability.
The Agent’s liability to the Principal and all third parties for monetary damages shall not exceed the Assets Under Management at the time the cause of action accrues, except in cases of willful misconduct or fraud.

7.3 Insurance.
The Principal [SELECT ONE:
(i) shall maintain; OR
(ii) authorizes the Agent to procure] fiduciary liability insurance in commercially reasonable amounts, premiums payable from the Principal’s assets.

7.4 Force Majeure.
The Agent shall not be liable for failure to act during events beyond the Agent’s reasonable control, including natural disasters, war, or systemic banking failures, provided the Agent takes reasonable steps to mitigate.

VIII. DISPUTE RESOLUTION

8.1 Governing Law.
This instrument and all acts of the Agent are governed by the laws of the State of Maryland, without regard to conflict-of-laws principles.

8.2 Forum Selection.
Exclusive jurisdiction and venue for all proceedings relating to this Power of Attorney shall lie in the Probate Court of [COUNTY], Maryland.

8.3 Limited Arbitration.
a. Scope: Any dispute solely concerning the Agent’s accounting or fees MAY be submitted to binding arbitration administered by the American Arbitration Association under its Commercial Rules, if all parties to the dispute consent in writing.
b. Reservation of Equitable Relief: Nothing in this Section limits the court’s authority to grant Fiduciary Remedies.

8.4 Jury Waiver.
[OPTIONAL] Each party hereby waives the right to a trial by jury in any proceeding arising out of or relating to this instrument, to the fullest extent permitted by law.

IX. GENERAL PROVISIONS

9.1 Amendment.
The Principal may amend this Power of Attorney only by a subsequent written instrument executed with the same formalities as this document.

9.2 Assignment & Delegation.
Rights or duties under this instrument are personal to the Agent and may not be assigned without the Principal’s prior written consent.

9.3 Revocation Procedures.
a. Execution: A Revocation Notice must be signed by the Principal (or, if incapacitated, by court order) before two (2) adult witnesses and acknowledged by a notary public.
b. Delivery: The Revocation Notice shall be delivered to the Agent and any known third party relying on this Power of Attorney.
c. Recording: If this Power of Attorney has been recorded, the Revocation Notice shall likewise be recorded.

9.4 Severability.
If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

9.5 Integration.
This document constitutes the entire understanding of the parties with respect to the subject matter and supersedes all prior powers of attorney except those expressly preserved in Schedule D.

9.6 Counterparts; Electronic Signatures.
This instrument may be executed in any number of counterparts, each of which is deemed an original. Signatures transmitted by electronic means shall be deemed originals to the extent permitted by law.

X. EXECUTION BLOCK & ACKNOWLEDGMENTS

[// GUIDANCE: Maryland requires (i) principal’s signature, (ii) two adult witnesses who sign in the presence of the principal and each other, and (iii) a notary acknowledgment. A witness may not be the Agent.]

1. Principal

[PRINCIPAL NAME], Principal
Date: ______

2. Witnesses

Witness #1: _____ Date: _
Print Name & Address: __________

Witness #2: _____ Date: _
Print Name & Address: __________

3. Notary Public

State of Maryland )
County of __ )

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 he/she executed the same for the purposes therein contained.

Notary Public
My Commission Expires: __

4. Agent’s Acknowledgment & Acceptance

I, [AGENT NAME], hereby accept my appointment as Agent under this Power of Attorney, acknowledge my fiduciary duties under the Act, and agree to act in accordance with its terms.

[AGENT NAME], Agent
Date: ______

[OPTIONAL Notarization of Agent’s Signature]

SCHEDULES

Schedule A – Authorized Self-Dealing Transactions (if any)
Schedule B – Co-Agent Authority (Joint/Several)
Schedule C – Disclosure of Conflicts of Interest
Schedule D – Prior Powers of Attorney to Remain in Effect

[// GUIDANCE: Attach or delete schedules as appropriate.]

© [YEAR] [LAW FIRM / AUTHOR]. All rights reserved.