DURABLE FINANCIAL POWER OF ATTORNEY

(Montana Uniform Power of Attorney Act — Mont. Code Ann. § 72-31-301 et seq.)

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
    A. Grant of General Authority
    B. Special Authority (Optional)
    C. Delegation & Successor Agents
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

[// GUIDANCE: Remove Table of Contents for shorter form versions if desired.]

I. DOCUMENT HEADER

1. Title: Durable Financial Power of Attorney (the “Power of Attorney” or “POA”).

2. Parties:
   a. Principal: [PRINCIPAL LEGAL NAME], residing at [ADDRESS] (“Principal”).
   b. Agent: [AGENT LEGAL NAME], residing at [ADDRESS] (“Agent”).
   c. Successor Agent(s) (optional): [SUCCESSOR AGENT NAME(S)].

3. Recitals
   WHEREAS, Principal desires to grant Agent authority to act on Principal’s behalf with respect to financial and property matters; and
   WHEREAS, Principal intends this Power of Attorney to be durable and to remain effective notwithstanding Principal’s subsequent incapacity, all pursuant to the Montana Uniform Power of Attorney Act (the “Act”);

4. Effective Date: This POA becomes effective on [EFFECTIVE DATE], unless otherwise provided in Section III.A.3.

5. Governing Law & Forum: This POA shall be governed by and construed under the laws of the State of Montana. Any judicial proceeding arising hereunder shall be filed exclusively in the [COUNTY] District Court, sitting in probate (the “State Probate Court”).

II. DEFINITIONS

For purposes of this POA, capitalized terms have the meanings set forth below. Undefined terms shall have the meanings ascribed in Mont. Code Ann. § 72-31-302.

1. “Act” means the Montana Uniform Power of Attorney Act, Mont. Code Ann. § 72-31-301 et seq.
2. “Assets Under Management” means all assets titled to or held for the benefit of Principal that are subject to Agent’s authority pursuant to this POA, valued as of the date of any alleged breach or event giving rise to liability.
3. “Durable” has the meaning given in § 72-31-303(2), i.e., not terminated by Principal’s incapacity.
4. “Successor Agent” means any individual identified in Section III.C.2 who is authorized to act upon the resignation, removal, incapacity, or death of the acting Agent.

[// GUIDANCE: Add, delete, or modify definitions to align with client objectives.]

III. OPERATIVE PROVISIONS

A. Grant of General Authority

1. Scope: Subject to the limitations herein, Principal hereby grants Agent authority to act for Principal with respect to all matters listed in § 72-31-326 through § 72-31-339, including but not limited to:
   a. Real property;
   b. Tangible personal property;
   c. Banks and other financial institutions;
   d. Operation of entity or business;
   e. Insurance and annuities;
   f. Claims and litigation;
   g. Personal and family maintenance;
   h. Benefits from governmental programs;
   i. Retirement plans; and
   j. Taxes.
2. Incorporation by Reference: The statutory short-form enumeration of powers in § 72-31-338 is hereby incorporated by reference.
3. Commencement: Authority granted herein is (check one) ☐ Immediate ☐ Springing, becoming effective upon the written certification of incapacity of Principal by two licensed physicians.

B. Special Authority (Optional)

Agent is [IS / IS NOT] authorized to engage in the following actions that require express grants under § 72-31-328(2):
1. Create, amend, revoke, or terminate an inter vivos trust.
2. Make gifts in excess of the annual federal gift-tax exclusion.
3. Delegate authority granted under this POA.
4. Change beneficiary designations.
[// GUIDANCE: Strike any item not granted; initial by Principal where required by statute.]

C. Delegation & Successor Agents

1. Delegation: Agent may not delegate authority except as allowed under § 72-31-320(1) and then only by a written instrument meeting the execution requirements of Section X herein.
2. Successor Agents:
   a. First Successor Agent: [NAME]
   b. Second Successor Agent: [NAME]
   Successor Agents shall serve in the order listed and shall have identical powers, subject to any limitations herein.
3. Co-Agents (if any) shall act (check one) ☐ Jointly ☐ Severally ☐ By Majority.

IV. REPRESENTATIONS & WARRANTIES

1. Principal’s Representations
   a. Principal is at least 18 years of age, of sound mind, and under no duress.
   b. Execution of this POA is voluntary and intends the POA to be durable within the meaning of the Act.

2. Agent’s Representations (to be acknowledged in Section X.B)
   a. Agent is eligible to serve and not disqualified under applicable law.
   b. Agent understands and accepts the fiduciary duties imposed by § 72-31-324.

V. COVENANTS & RESTRICTIONS

1. Fiduciary Duties: Agent shall act in accordance with § 72-31-324, including duties of loyalty, care, and record-keeping.
2. Accounting & Information: Upon written request of Principal or a reasonably identifiable interested person, Agent shall provide an accounting within 30 days.
3. Compliance: Agent shall comply with all federal and state laws, including tax reporting obligations.
4. Notice of Change in Capacity: Agent shall promptly notify Successor Agent(s) and Principal’s designated contact ([DESIGNEE NAME]) upon Agent’s resignation, incapacity, or intent to decline service.

VI. DEFAULT & REMEDIES

1. Events of Default
   a. Breach of fiduciary duty.
   b. Failure to provide requested accounting within prescribed time.
   c. Self-dealing not expressly authorized.

2. Notice & Cure: Any interested person under § 72-31-346 may deliver written notice to Agent specifying the alleged default. Agent shall have 15 days to cure before further remedies accrue.

3. Remedies
   a. Removal of Agent by State Probate Court.
   b. Compensatory damages limited per Section VII.2.
   c. Injunctive relief, including temporary restraining orders.
   d. Attorney fees and costs to prevailing party.

VII. RISK ALLOCATION

1. Indemnification — Agent’s Fiduciary Duty
   Agent shall indemnify and hold harmless Principal, Principal’s estate, and Successor Agents from losses arising out of Agent’s breach of fiduciary duty, willful misconduct, or gross negligence.

2. Limitation of Liability
   Except for intentional misconduct or fraud, Agent’s aggregate liability shall not exceed the net fair market value of Assets Under Management at the time liability arises.

3. Insurance
   Agent shall maintain errors & omissions insurance with minimum coverage of $[AMOUNT], naming Principal as an additional insured.

4. Force Majeure
   Agent shall not be liable for failure to act during events beyond Agent’s reasonable control, including natural disaster, war, or governmental action, provided Agent acts with reasonable diligence upon cessation of such event.

VIII. DISPUTE RESOLUTION

1. Governing Law: Montana law, without regard to conflict-of-law principles.
2. Forum Selection: Exclusive jurisdiction in State Probate Court.
3. Limited Arbitration
   a. Any monetary dispute not exceeding $50,000 shall be submitted to binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association.
   b. Non-monetary or fiduciary matters remain within State Probate Court.
4. Jury Waiver: TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES KNOWINGLY AND VOLUNTARILY WAIVE TRIAL BY JURY FOR ANY CLAIM ARISING OUT OF THIS POA.
5. Injunctive Relief: Nothing herein shall deprive the court of power to grant provisional or permanent injunctive relief.

IX. GENERAL PROVISIONS

1. Amendment & Revocation
   a. Principal may amend or revoke this POA pursuant to § 72-31-310 by (i) a subsequent POA expressly revoking prior powers, or (ii) a written instrument signed and notarized with notice to Agent.
   b. Divorce or dissolution of marriage between Principal and Agent automatically revokes Agent’s authority, unless expressly preserved under § 72-31-310(3).

2. Assignment & Delegation
   Agent may not assign rights or delegate duties except as expressly permitted herein.

3. Successors & Assigns
   This POA inures to the benefit of and binds the heirs, executors, administrators, successors, and assigns of the parties.

4. Severability
   If any provision is held invalid, the remainder shall be interpreted to effectuate Principal’s intent.

5. Integration
   This POA constitutes the entire understanding with respect to the subject matter and supersedes all prior powers of attorney covering the same subject matter.

6. Counterparts & Electronic Signatures
   This POA may be executed in counterparts, each of which is deemed an original. Signatures transmitted electronically (e.g., PDF, DocuSign) shall be deemed originals under Mont. Code Ann. § 30-18-102.

X. EXECUTION BLOCK

A. Principal

[PRINCIPAL LEGAL NAME]
Date: _______

State of Montana )
County of ___)

Subscribed, sworn to, and acknowledged before me by [PRINCIPAL NAME] this _ day of _, 20___.

Notary Public for the State of Montana
My commission expires: _____

[NOTARIAL SEAL]

B. Agent Acceptance & Acknowledgment

I, [AGENT NAME], have read the foregoing POA and accept appointment as Agent. I understand and will perform the fiduciary duties imposed on me by law.

[AGENT NAME]
Date: _______

State of Montana )
County of ___)

Subscribed and sworn before me by [AGENT NAME] this _ day of _, 20___.

Notary Public for the State of Montana
My commission expires: _____

[// GUIDANCE: Although Agent’s notarized acceptance is not mandatory under the Act, obtaining it enhances evidentiary reliability and third-party acceptance.]

C. Successor Agent Acceptance (Optional)

(Replicate Section X.B for each Successor Agent as desired.)

D. Specimen Signature/ID Verification (Optional)

Attach specimen signatures and copies of government-issued identification for each Agent to facilitate third-party reliance.

SCHEDULE 1 – SPECIAL INSTRUCTIONS (Attach if applicable)

[Describe any limitations, expansions, or conditions on Agent’s authority.]

[// GUIDANCE TO PRACTITIONER:
1. Review current Mont. Code Ann. Title 72, Ch. 31 for any legislative updates.
2. Confirm client capacity and obtain contemporaneous medical evaluation if springing authority is elected.
3. Record POA with county clerk if Agent will transact real estate.
4. Provide copies to financial institutions and interested family members to reduce future disputes.]