Financial Power of Attorney

DISCLAIMER
This template is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by its use. Practitioners must review, adapt, and finalize the document in light of the client’s particular facts, objectives, and current Rhode Island law (including R.I. Gen. Laws § 18-16-1 et seq.) before execution.

DURABLE FINANCIAL POWER OF ATTORNEY

(State of Rhode Island)

Effective Date: [ DATE ]

I. DOCUMENT HEADER

1. Parties
   1.1 Principal: [ FULL LEGAL NAME ], residing at [ ADDRESS ].
   1.2 Agent: [ FULL LEGAL NAME ], residing at [ ADDRESS ].
   1.3 Successor Agent(s) (optional): [ NAME / “None” ].

2. Recitals
   2.1 Principal desires to designate Agent to manage Principal’s property and financial affairs in accordance with R.I. Gen. Laws § 18-16-1 et seq.
   2.2 This instrument is intended to be a “durable” power of attorney under § 18-16-2 and shall not be affected by Principal’s subsequent disability or incapacity.

3. Governed Law & Jurisdiction
   3.1 This Power of Attorney (“POA”) is governed by the laws of the State of Rhode Island and is subject to the exclusive jurisdiction of the [ COUNTY ] Probate Court, except as otherwise provided in Section VIII (Dispute Resolution).

II. DEFINITIONS

For ease of reference, capitalized terms have the meanings set forth below.

“Act” means R.I. Gen. Laws § 18-16-1 et seq.
“Agent” means the individual appointed in Section I.1.2, including any Successor Agent who assumes authority under Section III.2.
“Assets Under Management” means all property, accounts, and interests subject to this POA and held, controlled, or titled in the name of Principal.
“Disability” has the meaning provided in § 18-16-2(4).
“Durable” signifies that this POA remains effective notwithstanding Principal’s Disability.
“Limited Arbitration Matter” has the meaning given in Section VIII.3.
“State Power of Attorney Law” refers collectively to the Act and any other applicable Rhode Island statutes or regulations governing the creation, interpretation, or enforcement of powers of attorney.

III. OPERATIVE PROVISIONS

1. Appointment of Agent
   Principal hereby appoints Agent to act for Principal in accordance with this POA.

2. Successor Agent
   (a) If Agent is unable or unwilling to serve, the first-listed Successor Agent shall automatically assume authority.
   (b) Unless expressly limited herein, each Successor Agent shall have identical authority to the original Agent.
   (c) Co-Agents (if named) shall act jointly ☐ or severally ☐.

3. Grant of Authority
   Subject to the limitations in Section III.4, Agent may exercise the following powers:

(a) Real property transactions
(b) Tangible personal property transactions
(c) Banking and financial institution transactions
(d) Securities and brokerage transactions
(e) Business operating transactions
(f) Insurance and annuity transactions
(g) Estate, trust, and beneficiary transactions
(h) Claims and litigation
(i) Personal and family maintenance
(j) Retirement plan transactions
(k) Tax matters
(l) Digital assets management
(m) “All Other Matters” to the fullest extent permitted by the Act

4. Special Powers Requiring Express Language (R.I. Gen. Laws § 18-16-1)
   Agent is / is not authorized to:
   (a) Create, amend, revoke, or terminate an inter vivos trust ✅ ☐ / ❌ ☐
   (b) Make a gift exceeding the annual federal gift-tax exclusion ✅ ☐ / ❌ ☐
   (c) Disclaim property interests ✅ ☐ / ❌ ☐
   (d) Change beneficiary designations ✅ ☐ / ❌ ☐

5. Durability
   This POA is effective immediately upon execution and shall remain in effect until revoked under Section III.8 or terminated under the Act.

6. Record-Keeping & Reporting
   Agent shall:
   (a) Maintain contemporaneous records of all receipts, disbursements, and transactions.
   (b) Provide an accounting to Principal or Principal’s legal representative upon written request within 30 days.

7. Standards of Conduct
   Agent shall:
   (a) Act in good faith and in Principal’s best interest;
   (b) Avoid conflicts of interest;
   (c) Keep Principal’s property separate from Agent’s own;
   (d) Preserve Principal’s estate plan to the extent known to Agent.

8. Revocation & Termination
   8.1 Principal may revoke this POA at any time by (i) executing a written revocation, and (ii) delivering the revocation to Agent and to any third party known to be relying on this POA.
   8.2 Revocation is effective upon delivery, unless a later date is specified.
   8.3 Agent’s authority terminates upon: (a) Principal’s death; (b) revocation pursuant to § 18-16-1.1(1); (c) Agent’s resignation or removal; or (d) as otherwise provided by law.

IV. REPRESENTATIONS & WARRANTIES

1. Principal
   (a) Has the legal capacity to execute this POA;
   (b) Owns or controls the Assets Under Management;
   (c) Understands the nature and effect of granting the powers herein.

2. Agent
   (a) Accepts the appointment and fiduciary obligations imposed by law;
   (b) Is not currently suspended or barred from acting as a fiduciary by any court;
   (c) Will comply with the Act and this POA.

3. Survival
   The representations and warranties in this Section survive execution, revocation, or termination of this POA.

V. COVENANTS & RESTRICTIONS

1. Affirmative Covenants
   Agent shall:
   (a) Comply with all applicable laws and regulations;
   (b) Consult with appropriate professionals where necessary;
   (c) Provide timely notice to Successor Agent upon inability to act.

2. Negative Covenants
   Agent shall not:
   (a) Self-dealing, except with written consent of Principal;
   (b) Make loans to Agent or Agent’s affiliates;
   (c) Delegate authority except as expressly permitted by § 18-16-5.

VI. DEFAULT & REMEDIES

1. Events of Default
   (a) Breach of fiduciary duty;
   (b) Failure to maintain records;
   (c) Misappropriation or commingling of Principal’s assets;
   (d) Conviction of a felony involving dishonesty.

2. Notice & Cure
   Principal or an interested person may provide written notice specifying the default. Agent shall have 15 days to cure, except for willful misconduct.

3. Remedies
   (a) Mandatory accounting;
   (b) Removal of Agent;
   (c) Restitution and surcharge;
   (d) Injunctive relief to freeze or recover assets;
   (e) Attorney fees and costs to prevailing party.

VII. RISK ALLOCATION

1. Indemnification
   (a) Agent must indemnify and hold Principal harmless from losses arising out of Agent’s breach of fiduciary duty, willful misconduct, or gross negligence.
   (b) Principal shall indemnify Agent for reasonable expenses incurred in good-faith performance of authorized duties.

2. Limitation of Liability
   Except for willful misconduct or gross negligence, Agent’s aggregate liability shall not exceed the value of the Assets Under Management at the time the liability arises.

3. Insurance
   Agent may, at Principal’s expense, secure fiduciary liability insurance with coverage limits not less than [ USD AMOUNT ].

4. Force Majeure
   Agent shall not be liable for failure to act where prevented by events beyond Agent’s reasonable control, provided Agent uses commercially reasonable efforts to mitigate.

VIII. DISPUTE RESOLUTION

1. Governing Law
   This POA is governed by State Power of Attorney Law and other applicable laws of the State of Rhode Island, without regard to conflict-of-laws principles.

2. Forum Selection
   Actions seeking equitable or fiduciary relief shall be brought exclusively in the [ COUNTY ] Probate Court.

3. Limited Arbitration
   Monetary claims not exceeding USD [ THRESHOLD ] (“Limited Arbitration Matters”) shall be resolved by binding arbitration administered by the American Arbitration Association under its Commercial Rules.
   (a) Venue: Providence, Rhode Island.
   (b) Single arbitrator; decision within 90 days; limited discovery.
   (c) Equitable remedies remain available from the Probate Court.

4. Jury Waiver
   To the fullest extent permitted by law, the parties waive trial by jury in any proceeding arising out of this POA, except where such waiver is prohibited by R.I. Const. art. I, § 15 or other non-waivable provisions.

5. Injunctive Relief
   Nothing in this Section limits the court’s power to grant temporary, preliminary, or permanent injunctive relief to protect Principal’s interests.

IX. GENERAL PROVISIONS

1. Amendments & Waivers
   Must be written and signed by Principal; no oral modification is effective.

2. Assignment
   Agent may not assign rights or delegate duties except as permitted in Section V.2(c).

3. Successors & Assigns
   This POA is binding upon and inures to the benefit of the parties and their respective heirs, personal representatives, and permitted assigns.

4. Severability
   If any provision is held invalid, the remaining provisions remain enforceable.

5. Entire Agreement
   This POA constitutes the entire understanding between Principal and Agent regarding the subject matter and supersedes all prior powers of attorney concerning financial matters.

6. Counterparts
   This POA may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument.

7. Electronic Signatures
   Electronic signatures and notarizations complying with R.I. Gen. Laws § 42-127.1-6 are deemed original for all purposes.

X. EXECUTION BLOCK

Executed as a sealed instrument as of the Effective Date.

ACKNOWLEDGMENT

State of Rhode Island
County of [ COUNTY ]

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 (s)he executed the same for the purposes therein contained.

____________________________________
Notary Public
My commission expires: _____________

[OPTIONAL WITNESS ATTESTATION]

The undersigned witnesses affirm that the Principal is personally known to them, appeared to be of sound mind, and signed this POA voluntarily.