DURABLE FINANCIAL POWER OF ATTORNEY

(New Jersey – N.J. Stat. Ann. § 46:2B-8.2 et seq.)

[// GUIDANCE: This template is intentionally comprehensive. Feel free to delete provisions that are unnecessary for a particular matter and tailor [BRACKETED] text prior to execution.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

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

• Principal: [FULL LEGAL NAME, ADDRESS] (“Principal”); and
• Agent: [FULL LEGAL NAME, ADDRESS] (“Agent” or “Attorney-in-Fact”).

1.2 Recitals
A. Principal desires to appoint Agent to manage Principal’s financial and property interests in accordance with the New Jersey Revised Durable Power of Attorney Act, N.J. Stat. Ann. § 46:2B-8.2 et seq. (the “Act”).
B. Agent is willing to accept such appointment and act in a fiduciary capacity.
C. The parties intend this Power to be durable and to survive Principal’s incapacity as permitted under the Act.

1.3 Consideration
The mutual promises herein constitute good and valuable consideration, the receipt and sufficiency of which are acknowledged.

2. DEFINITIONS

“Act” – The New Jersey Revised Durable Power of Attorney Act, N.J. Stat. Ann. § 46:2B-8.2 et seq.
“Agent” – The individual designated in Section 1.1, including any Successor Agent appointed under Section 3.8.
“Assets Under Management” – All property, accounts, and rights subject to Agent’s authority under this Power.
“Durable” – Having effect notwithstanding Principal’s subsequent incapacity, as authorized by the Act.
“Effective Date” – The earlier of (a) the date of execution, or (b) the occurrence of the contingency stated in Section 3.2.
“Financial Institution” – Any bank, trust company, broker-dealer, or similar entity authorized to transact business in New Jersey.
“Successor Agent” – Any individual designated in Section 3.8 to act if the original Agent is unable or unwilling to serve.

[// GUIDANCE: Add or remove defined terms to match revised text.]

3. OPERATIVE PROVISIONS

3.1 Appointment & Grant of Authority

Principal hereby appoints Agent as Principal’s true and lawful attorney-in-fact, with full power to act for Principal in all matters described in Section 3.3, subject to the limitations herein.

3.2 Effective Date; Springing Authority

☐ Immediate   ☐ Upon written certification by [PHYSICIAN/OTHER] of Principal’s incapacity.
[PRINCIPAL MUST INITIAL SELECTED BOX.]

3.3 Enumerated Powers

Principal grants Agent authority over the following categories (initial each desired power):

*Statutory references are provided for practitioner convenience.

3.4 Gift-Giving Authority

Agent may make gifts from Principal’s property only if the gift:
a) Does not exceed the annual federal gift-tax exclusion per donee; and
b) Is consistent with Principal’s known estate plan or past patterns of gifting.

[// GUIDANCE: Consider stricter gift caps when appropriate.]

3.5 Special Instructions

[INSERT ANY ADDITIONAL LIMITATIONS, PURPOSES, OR INSTRUCTIONS. If none, write “None.”]

3.6 Record-Keeping and Reporting

Agent shall maintain contemporaneous records of all transactions, preserve receipts for at least six (6) years, and provide an annual accounting to [PERSON OR COURT] within sixty (60) days of year-end.

3.7 Nomination of Guardian

If a court decides that a guardian is necessary, Principal nominates Agent to serve, subject to court approval.

3.8 Successor Agent(s)

1st Successor: [NAME, ADDRESS]
2nd Successor: [NAME, ADDRESS]
Each Successor Agent shall have identical powers upon written acceptance.

4. REPRESENTATIONS & WARRANTIES

4.1 By Principal

a) Principal is at least 18 years old and of sound mind.
b) Execution of this Power is voluntary and free from undue influence.

4.2 By Agent

Agent represents, warrants, and covenants that Agent:
a) Accepts the fiduciary duties imposed by the Act;
b) Shall act loyally for Principal’s benefit;
c) Has not been convicted of a disqualifying offense involving dishonesty; and
d) Will not commingle Principal’s funds with Agent’s own, except as expressly permitted by law.

5. COVENANTS & RESTRICTIONS

5.1 Fiduciary Standard – Agent shall exercise the care, competence, and diligence normally exercised by fiduciaries in similar circumstances.

5.2 Compliance with Law – Agent shall comply with all applicable federal and New Jersey statutes, regulations, and court orders.

5.3 Notice of Incapacity – Upon learning of Principal’s death or a judicial determination of incapacity, Agent shall cease all further acts except those necessary to safeguard Assets Under Management.

5.4 Third-Party Reliance – Third parties may rely on Agent’s certification of authority unless they have actual knowledge of termination or suspension.

6. DEFAULT & REMEDIES

6.1 Events of Default – Any of the following constitutes a default by Agent:
a) Breach of fiduciary duty;
b) Failure to provide requested accountings within thirty (30) days;
c) Misappropriation or self-dealing not expressly authorized.

6.2 Notice & Cure – Principal (or an interested party) shall give written notice; Agent has ten (10) days to cure, except no cure period applies to intentional misconduct.

6.3 Remedies – Without limiting statutory remedies, Principal or interested parties may seek:
a) Injunctive relief;
b) Accounting and surcharge;
c) Removal of Agent and appointment of a Successor Agent;
d) Recovery of costs and reasonable attorneys’ fees.

7. RISK ALLOCATION

7.1 Indemnification by Agent
Agent shall indemnify and hold harmless Principal and Principal’s estate from any loss, liability, or expense arising from Agent’s breach of fiduciary duty or willful misconduct.

7.2 Limitation of Liability
Agent’s personal liability shall be capped at the Assets Under Management, except for losses caused by Agent’s gross negligence, willful misconduct, or fraud.

7.3 Force Majeure
Agent is not liable for failure to act when prevented by events beyond Agent’s reasonable control, provided Agent acts diligently once the impediment ceases.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Power shall be governed by and construed in accordance with the laws of the State of New Jersey without regard to conflict-of-law principles.

8.2 Forum Selection
Exclusive jurisdiction and venue shall lie in the Superior Court of New Jersey, Chancery Division, Probate Part, [COUNTY] Vicinage.

8.3 Limited Arbitration
Disputes solely between Principal and Agent (and not involving third-party claims) may, at Principal’s election, be submitted to binding arbitration under the AAA Commercial Arbitration Rules. The arbitrator must be a retired New Jersey judge with fiduciary-law experience.

8.4 Jury Waiver
To the extent permitted by applicable law, the parties knowingly waive any right to a trial by jury in any action or proceeding arising out of this Power. This waiver does not apply to guardianship proceedings.

8.5 Injunctive Relief
Nothing herein impairs the court’s ability to grant equitable relief, including temporary restraining orders or preliminary injunctions to prevent misuse of Assets Under Management.

9. GENERAL PROVISIONS

9.1 Amendment & Revocation
Principal may amend or revoke this Power at any time by (a) executing a written instrument of revocation or amendment, and (b) delivering notice to Agent and any known third party relying on this Power. Revocation is effective upon such delivery, unless a later date is specified.

9.2 Assignment
Agent may not delegate or assign powers except to a Successor Agent expressly authorized under Section 3.8.

9.3 Severability
If any provision is held unenforceable, the remainder shall be given effect to the maximum extent permitted.

9.4 Entire Agreement
This document constitutes the entire agreement between the parties concerning the subject matter and supersedes all prior powers of attorney, except those expressly preserved herein.

9.5 Counterparts; Electronic Signatures
This Power may be executed in counterparts, each deemed an original. Signatures transmitted electronically (e.g., via PDF) shall be deemed originals.

10. EXECUTION BLOCK

10.1 Principal’s Signature & Acknowledgment

I, [PRINCIPAL NAME], have read the foregoing Durable Financial Power of Attorney and understand its contents. I sign my name to this instrument on [DATE] at [CITY, STATE].

[PRINCIPAL NAME], Principal

State of New Jersey      :
County of [COUNTY]     :

On this ___ day of ____, 20__, before me, the undersigned Notary Public/Attorney-at-Law, 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 who acknowledged that he/she executed it for the purposes therein contained.

Notary Public / Attorney-at-Law
My commission expires: _____

10.2 Agent’s Acceptance of Appointment

I, [AGENT NAME], accept the appointment as Agent and acknowledge the fiduciary duties imposed by the Act.

[AGENT NAME], Agent  Date: __

10.3 Witness Attestation (Optional but Recommended)

We, the undersigned witnesses, declare that [PRINCIPAL NAME] is personally known to us, appears to be of sound mind, and signed this Power voluntarily.

____  ____
Witness 1 Signature & Address  Witness 2 Signature & Address

[// GUIDANCE:
1. Have each power category initialed as required by N.J. Stat. Ann. § 46:2B-8.9 et seq.
2. For real-property transactions, record this instrument (or a certified copy) in the county clerk’s office where property is located.
3. Provide copies to financial institutions to minimize challenges to Agent’s authority.]