DURABLE FINANCIAL POWER OF ATTORNEY

(Minnesota – Minn. Stat. ch. 523)

[// GUIDANCE: This template is drafted to comply with Minnesota’s statutory framework governing powers of attorney (currently Minn. Stat. ch. 523). Confirm no subsequent legislative changes before final use.]

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. Title; Parties.
    This Durable Financial Power of Attorney (the “Power of Attorney” or “Instrument”) is executed by [PRINCIPAL FULL LEGAL NAME] (“Principal”) in favor of [AGENT FULL LEGAL NAME] (“Agent”) on [EFFECTIVE DATE].

2. Recitals.
    A. Principal desires to appoint an agent to manage the Principal’s property and financial affairs.
    B. This Instrument is intended to be a “durable” power of attorney under Minn. Stat. ch. 523, and shall remain effective notwithstanding the Principal’s subsequent incapacity, except as provided herein.

3. Governing Law & Jurisdiction.
    This Instrument, and all acts taken hereunder, shall be governed by the laws of the State of Minnesota. Disputes shall be resolved in accordance with Section VIII below.

II. DEFINITIONS

For ease of reference, capitalized terms have the meanings set forth below. Defined terms apply equally to singular and plural forms.

“Account” – Any checking, savings, money-market, brokerage, retirement, or similar account in the name of or benefitting the Principal.

“Assets Under Management” – The aggregate fair-market value of all property over which the Agent exercises authority at the time liability is determined.

“Durable” – Having effect notwithstanding the Principal’s subsequent incapacity, in conformity with Minn. Stat. ch. 523.

“Fiduciary Duty” – The duties of loyalty, care, good faith, and full disclosure imposed upon the Agent under applicable law and this Instrument.

“Property” – All real and personal property of every kind, tangible and intangible, now owned or later acquired by the Principal, wherever located.

“Springing Event” – The written determination by [ONE LICENSED PHYSICIAN / TWO LICENSED PHYSICIANS] that the Principal lacks capacity.

[// GUIDANCE: Add, remove, or modify defined terms to align with the Principal’s estate plan and any cross-referenced documents.]

III. OPERATIVE PROVISIONS

3.1 Appointment & Acceptance

A. Principal hereby appoints [AGENT NAME] as Agent.
B. [ALTERNATE AGENT NAME] is appointed as Successor Agent if the primary Agent is unwilling, unable, or legally disqualified to serve.
C. By signing in Section X, each Agent accepts such appointment and the Fiduciary Duty imposed herein.

3.2 Durability and Effective Date

A. This Instrument is ☐ IMMEDIATELY EFFECTIVE --OR-- ☐ SPRINGING upon the occurrence of the Springing Event.
B. Durability. The authority granted shall not terminate upon the Principal’s incapacity.

3.3 Grant of Authority

Subject to the limitations in Section 3.4, the Agent may exercise the following powers:

1. Real Property Transactions
2. Tangible Personal Property Transactions
3. Stock, Bond, and Securities Transactions
4. Banking and Other Financial Institution Transactions
5. Business Operating Transactions
6. Insurance and Annuity Transactions
7. Estate, Trust, and Beneficiary Transactions
8. Personal and Family Maintenance
9. Digital Assets Management
10. Tax Matters
11. Retirement Plan Transactions
12. Litigation and Claims
13. Gifts (see special limitations below)

[// GUIDANCE: The above list mirrors the categories recognized by Minnesota’s power-of-attorney statute. Counsel should confirm each requested power is checked or struck per client instructions.]

3.4 Special Instructions & Limitations

A. Gifting Authority. Agent may make gifts ☐ NOT PERMITTED ☐ UP TO THE ANNUAL FEDERAL GIFT-TAX EXCLUSION ☐ OTHER: [___].
B. Self-Dealing. The Agent shall ☐ NOT ☐ MAY (with written consent of [ALTERNATE AGENT / THIRD-PARTY]) engage in transactions that confer a benefit on the Agent.
C. Real Property Conveyances exceeding $[LIMIT] require advance written consent of [NAME / ROLE].
D. Any act requiring court approval under Minn. Stat. ch. 523 or applicable probate rules must first obtain such approval.

3.5 Record-Keeping and Reporting

A. Agent shall maintain contemporaneous, complete records of all receipts, disbursements, and transactions.
B. Upon written request by the Principal, a court, or a court-appointed fiduciary, Agent shall deliver an accounting within 30 days.

3.6 Nomination of Guardian/Conservator

If a court determines the necessity of a guardian or conservator for the Principal, Principal nominates [NOMINEE NAME] to serve in such capacity.

3.7 Revocation & Termination

A. Principal may revoke this Instrument in whole or in part by:
1. Executing a written revocation; or
2. Executing a subsequent power of attorney expressly revoking prior grants.
B. Revocation is effective upon actual notice to Agent and to persons relying on this Instrument.
C. This Instrument terminates upon: (i) Principal’s death; (ii) court-ordered termination; or (iii) complete revocation pursuant to clause A.

IV. REPRESENTATIONS & WARRANTIES

4.1 Principal’s Representations
A. Capacity. Principal affirms being of sound mind and not under duress or undue influence.
B. Ownership. Principal holds title to or has authority over the Property subject to this Instrument.

4.2 Agent’s Representations
A. Eligibility. Agent is at least 18 years old and not disqualified under Minn. Stat. ch. 523 or other applicable law.
B. No Conflict. Execution and performance of this Instrument will not violate any court order or fiduciary duty owed by Agent.

4.3 Survival
All representations and warranties survive acceptance of appointment and remain in effect for the duration of the Agent’s service.

V. COVENANTS & RESTRICTIONS

5.1 Affirmative Covenants of Agent
A. Fiduciary Standard. Agent shall act loyally, with reasonable care, competence, and diligence.
B. Segregation of Property. Agent shall keep Principal’s Property separate from Agent’s own property.
C. Compliance. Agent shall comply with all applicable federal and state laws, including tax-reporting obligations.

5.2 Negative Covenants of Agent
A. No Commingling. Agent shall not commingle personal funds with Principal’s funds except as statutorily permitted.
B. No Delegation. Agent shall not delegate authority except to licensed professionals (e.g., CPA, attorney) as reasonably necessary, retaining oversight responsibility.
C. No Renunciation Without Notice. Agent shall provide at least 30 days’ written notice before resignation unless impracticable.

VI. DEFAULT & REMEDIES

6.1 Events of Default
A. Breach of Fiduciary Duty;
B. Misappropriation, fraud, or self-dealing without authorization;
C. Failure to provide requested accounting within 30 days after notice;
D. Incapacity or conviction of Agent for a felony involving dishonesty.

6.2 Notice & Cure
Except for willful misconduct, the Principal (or an interested party) shall provide written notice specifying the default. Agent has 15 days to cure unless immediate action is necessary to protect Property.

6.3 Remedies
A. Suspension or removal of Agent;
B. Injunctive relief (including asset freeze);
C. Surcharge of losses and disgorgement of profits;
D. Attorneys’ fees and costs to prevailing party.

VII. RISK ALLOCATION

7.1 Indemnification by Agent
Agent shall indemnify and hold the Principal and the Principal’s estate harmless from any liability, loss, or expense (including reasonable attorneys’ fees) arising from Agent’s breach of Fiduciary Duty or violation of applicable law.

7.2 Limitation of Liability
Except for willful misconduct or gross negligence, Agent’s aggregate liability shall not exceed the Assets Under Management at the time the cause of action accrues.

7.3 Insurance
[OPTIONAL] Agent shall secure fiduciary-liability insurance in a minimum amount of $[LIMIT] and maintain coverage throughout the term of appointment.

7.4 Force Majeure
Agent is not liable for failure to act when such failure results directly from events beyond Agent’s reasonable control, including natural disasters, war, or government restrictions, provided Agent acts with due diligence once the event concludes.

VIII. DISPUTE RESOLUTION

8.1 Governing Law
This Instrument is governed by and construed in accordance with the laws of the State of Minnesota, without regard to conflict-of-law principles.

8.2 Forum Selection
All proceedings relating to the Agent’s conduct, accountings, or removal shall be brought exclusively in the Probate Division of the District Court of the county where the Principal resides or resided at the time of incapacity.

8.3 Limited Arbitration
A. Scope. Disputes solely involving calculation or allocation of investment gains/losses ≤ $50,000 shall be submitted to binding arbitration under the Financial Industry Regulatory Authority (FINRA) rules then in effect.
B. Exclusions. Claims alleging breach of Fiduciary Duty, requests for injunctive relief, or matters within the probate court’s exclusive jurisdiction are excluded.

8.4 Jury Waiver
To the fullest extent permitted by Minnesota law, the parties waive trial by jury in any action arising out of this Instrument; provided, however, that any statutory right to a jury trial in probate court is preserved where such waiver is unenforceable.

8.5 Injunctive Relief
Nothing in this Section shall limit the right of any interested person to seek temporary, preliminary, or permanent injunctive relief to prevent imminent harm to the Principal or the Principal’s Property.

IX. GENERAL PROVISIONS

9.1 Amendment & Waiver
This Instrument may be amended only by a writing signed by the Principal and acknowledged before a notarial officer. No waiver of any provision shall be deemed a waiver of any other provision.

9.2 Assignment
The powers herein are personal to the Agent and may not be assigned or delegated except as expressly permitted in Section 5.2.

9.3 Successors & Assigns
This Instrument binds and benefits the Principal, the Agent, and their respective heirs, devisees, personal representatives, and permitted assigns.

9.4 Severability
If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force and effect, and the offending provision shall be reformed to the minimum extent necessary to achieve its intent.

9.5 Integration
This Instrument constitutes the entire agreement with respect to the subject matter and supersedes all prior powers of attorney to the extent of any inconsistency.

9.6 Counterparts; Electronic Signatures
This Instrument may be executed in counterparts, each of which shall be deemed an original. Signatures transmitted by facsimile, PDF, or compliant e-signature platform shall be deemed original.

X. EXECUTION BLOCK

10.1 Principal’s Signature

I, [PRINCIPAL NAME], have read the foregoing Durable Financial Power of Attorney and agree to its terms.

[PRINCIPAL NAME] – Principal
Date: _________

10.2 Notarial Certificate

State of Minnesota )
County of ______ )

On this _ day of _, 20____, before me, the undersigned notarial officer, 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: __

10.3 Agent’s Acceptance

I, [AGENT NAME], hereby accept appointment as Agent and agree to act in accordance with this Instrument and applicable law.

[AGENT NAME] – Agent
Date: _________
[OPTIONAL – SUCCESSOR AGENT]

I, [SUCCESSOR AGENT NAME], hereby accept appointment as Successor Agent, effective upon the circumstances stated herein.

[SUCCESSOR AGENT NAME] – Successor Agent
Date: _________

[// GUIDANCE:
1. Execution Requirements – Minnesota requires the Principal’s signature to be acknowledged before a notary public (Minn. Stat. ch. 523). Witnesses are optional but recommended for evidentiary purposes.
2. Recordation – Real property transactions may require recording a certified copy in the county real estate records; confirm with local recorder.
3. Safekeeping – Advise the Principal to keep the original in a secure location and provide copies only to trusted parties.
4. Third-Party Reliance – Attach an optional “Certification By Agent” form to facilitate acceptance by financial institutions.
5. Revocation – Provide written notice to all known recipients of this Instrument immediately upon revocation to prevent further reliance.
]