DURABLE (FINANCIAL) POWER OF ATTORNEY

(TEXAS)

[// GUIDANCE: This template is drafted to comply with Tex. Est. Code §§ 751.001 et seq. Replace all bracketed fields, review discretionary language, and confirm compliance with the most current version of Texas law before execution.]

TABLE OF CONTENTS

1. Statutory Notices & Acknowledgment
2. Document Header
3. Definitions
4. Operative Provisions
   4.1 Appointment & Designation
   4.2 Scope of Authority
   4.3 Durability; Commencement & Termination
   4.4 Execution Requirements
   4.5 Revocation Procedures
5. Representations & Warranties
6. Covenants & Restrictions
7. Default & Remedies
8. Risk Allocation
9. Dispute Resolution
10. General Provisions
11. Execution Block

1. STATUTORY NOTICES & ACKNOWLEDGMENT

1.1 REQUIRED NOTICE TO PRINCIPAL

[Insert verbatim the “NOTICE TO PERSON EXECUTING DURABLE POWER OF ATTORNEY” prescribed by Tex. Est. Code § 751.0021(a).]

1.2 IMPORTANT INFORMATION FOR AGENT

[Insert verbatim the “IMPORTANT INFORMATION FOR AGENT” prescribed by Tex. Est. Code § 751.0021(b).]

[// GUIDANCE: Do not alter statutory text other than formatting; doing so may jeopardize enforceability.]

2. DOCUMENT HEADER

This Durable (Financial) Power of Attorney (this “Instrument”) is made effective as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

• Principal: [PRINCIPAL LEGAL NAME], residing at [ADDRESS], [County], Texas (“Principal”); and
• Agent: [AGENT LEGAL NAME], residing at [ADDRESS] (“Agent”).

Recitals
A. Principal desires to appoint Agent to manage Principal’s property and financial affairs in accordance with the terms of this Instrument and the Texas Estates Code.
B. Agent is willing to act and acknowledges the fiduciary duties imposed by law and by this Instrument.

Consideration
The mutual covenants herein constitute sufficient consideration.

3. DEFINITIONS

For purposes of this Instrument (capitalized terms appear alphabetically):

“Assets Under Management” means all property over which Agent has authority at the time liability arises.
“Co-Agent” means any additional person designated pursuant to Section 4.1(c).
“Durable” has the meaning set forth in Tex. Est. Code § 751.001(4).
“Effective Date” has the meaning assigned in Section 2.
“Event of Default” has the meaning assigned in Section 7.1.
“Governing Law” means the internal laws of the State of Texas.
“Incapacity” means the Principal’s incapacitation as defined in Tex. Est. Code § 1002.017 or successor statute.
“Instrument” means this Durable (Financial) Power of Attorney, as amended from time to time.
“Successor Agent” has the meaning assigned in Section 4.1(b).

[// GUIDANCE: Add or remove definitions as required for customization.]

4. OPERATIVE PROVISIONS

4.1 Appointment & Designation

a. Appointment. Principal hereby appoints Agent as Principal’s true and lawful attorney-in-fact to exercise the powers granted herein.

b. Successor Agent. If Agent resigns, dies, becomes incapacitated, or is otherwise unable to serve, [SUCCESSOR AGENT NAME] (“Successor Agent”) shall automatically succeed to all powers herein granted.

c. Co-Agents. [Select one]
• □ The Agents shall act jointly; neither may act without written consent of the other.
• □ Each Agent may act independently.

4.2 Scope of Authority

a. General Grant. Principal grants Agent authority to act with respect to all lawful subjects and purposes enumerated in Tex. Est. Code § 751.031 except as limited below.

b. Specific Powers. Without limiting the generality of Section 4.2(a), Agent is specifically authorized to engage in the following categories of transactions (collectively, the “Granted Powers”):

[// GUIDANCE: Principal must initial each power to be granted. Absence of initials means power is withheld.]

c. Hot Powers Requiring Explicit Grant. Pursuant to Tex. Est. Code § 751.032, Principal expressly authorizes Agent to:
1. Create, amend, revoke, or terminate inter vivos trusts.
2. Make a gift, subject to Section 8.2(b).
3. Create or change rights of survivorship.
4. Create or change a beneficiary designation.
5. Delegate authority granted under this Instrument.
6. Waive Principal’s right to be a beneficiary of a joint and survivor annuity.
7. Exercise fiduciary powers that Principal has authority to delegate.
8. Disclaim or refuse an interest in property.

4.3 Durability; Commencement & Termination

a. Durability. This Instrument is durable and shall not terminate upon Principal’s Incapacity.

b. Commencement. [Select one]
• □ Immediately upon execution.
• □ Upon written determination of Incapacity by [PHYSICIAN TITLE].

c. Automatic Termination. This Instrument terminates:
i. Upon Principal’s death;
ii. Upon revocation under Section 4.5; or
iii. As otherwise mandated by law.

4.4 Execution Requirements

This Instrument must be:
a. Signed by Principal, or by another individual in Principal’s conscious presence and at Principal’s direction; and
b. Acknowledged before a notary public.

[// GUIDANCE: Texas does not require witnesses; however, witnesses may reduce contest risk.]

4.5 Revocation Procedures

a. Voluntary Revocation. Principal may revoke this Instrument in whole or in part by a written instrument executed with the same formalities required herein.

b. Notification. Revocation is effective upon actual delivery of written notice to Agent. For powers previously recorded, Principal shall record the revocation instrument in the same county real-property records.

c. Third-Party Reliance. Absent actual knowledge of revocation, third parties may rely on this Instrument pursuant to Tex. Est. Code § 751.211.

5. REPRESENTATIONS & WARRANTIES

5.1 Principal represents that:
a. Principal is at least eighteen (18) years of age, of sound mind, and under no duress or undue influence.

5.2 Agent represents and warrants that:
a. Agent is willing and qualified to serve;
b. Agent will exercise Granted Powers in good faith, in Principal’s best interest, and in conformity with Tex. Est. Code Chapter 751; and
c. Agent will maintain complete records and receipts of all transactions undertaken on Principal’s behalf.

5.3 Survival. All representations and warranties survive termination of the agency with respect to acts or omissions occurring prior thereto.

6. COVENANTS & RESTRICTIONS

6.1 Fiduciary Standards. Agent shall:
a. Act loyally for the benefit of Principal;
b. Avoid self-dealing except as expressly permitted;
c. Keep Principal’s property separate from Agent’s own; and
d. Provide an accounting to Principal or Principal’s legal representative on written request within thirty (30) days.

6.2 Delegation. Agent may delegate duties to professionals (e.g., attorneys, accountants) but remains responsible for prudent selection and supervision.

6.3 Records. Agent shall retain documentation for a minimum of four (4) years after termination and produce same upon demand of a court or Principal’s personal representative.

7. DEFAULT & REMEDIES

7.1 Events of Default

Any of the following constitutes an “Event of Default”:
a. Agent’s breach of fiduciary duty;
b. Misappropriation or commingling of assets;
c. Failure to provide an accounting within required period;
d. Incapacity, resignation, or death of Agent without an acting Successor Agent.

7.2 Notice & Cure

Except for willful misconduct or gross negligence, Principal (or an interested party under Tex. Est. Code § 751.251) shall provide written notice describing the default and a fifteen (15) day cure period.

7.3 Remedies

If the default is not cured, Principal or an interested party may seek:
a. Temporary or permanent injunction;
b. Removal and surcharge of Agent;
c. Recovery of monetary damages;
d. Attorneys’ fees and court costs; and
e. Any other relief available at law or in equity.

8. RISK ALLOCATION

8.1 Indemnification

Principal shall indemnify and hold Agent harmless from all claims, liabilities, and expenses arising from lawful acts performed in good faith under this Instrument, except for acts constituting gross negligence, willful misconduct, or bad faith.

8.2 Limitation of Liability

Agent’s aggregate liability to Principal shall not exceed the Assets Under Management at the time the cause of action accrues, excluding amounts lost through Agent’s gross negligence or willful misconduct.

8.3 Insurance & Bond

[Select one]
• □ No bond required.
• □ Agent shall obtain a bond in the amount of $[BOND AMOUNT].

8.4 Force Majeure

Agent shall not be liable for delays or failures caused by events beyond Agent’s reasonable control, including acts of God, war, terrorism, cyber-attacks, or governmental action.

9. DISPUTE RESOLUTION

9.1 Governing Law. This Instrument and all acts hereunder are governed by and construed in accordance with the laws of the State of Texas (the “Governing Law”).

9.2 Forum Selection. Exclusive venue for any proceeding arising under or relating to this Instrument shall lie in the statutory probate court (or, if none, the county court at law exercising probate jurisdiction) of [COUNTY], Texas.

9.3 Limited Arbitration. Any monetary claim not exceeding $[ARBITRATION CAP] shall, at either party’s election, be resolved by binding arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. Injunctive and declaratory relief claims remain within the exclusive jurisdiction of the forum specified in Section 9.2.

9.4 Jury Waiver. To the fullest extent permitted by law, the parties knowingly and voluntarily waive trial by jury. If a court of competent jurisdiction deems this waiver unenforceable, the provision shall be severed and the matter tried without a jury only with consent of all parties.

9.5 Injunctive Relief. Nothing herein shall limit the right of Principal or any interested person to seek immediate injunctive relief to prevent irreparable harm resulting from Agent’s breach of fiduciary duty.

10. GENERAL PROVISIONS

10.1 Amendment & Waiver. This Instrument may be amended only by a written instrument executed with the same formalities as this Instrument. No waiver of any provision shall be effective unless in writing.

10.2 Assignment. Except as expressly provided, Agent may not assign duties hereunder.

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

10.4 Severability. Any invalid or unenforceable provision shall be severed and the remainder construed to carry out the parties’ intent to the maximum extent permitted.

10.5 Integration. This Instrument constitutes the entire understanding between the parties regarding the subject matter and supersedes all prior powers of attorney except as expressly referenced.

10.6 Counterparts; Electronic Signatures. This Instrument may be executed in counterparts, each of which is deemed an original. Signatures delivered electronically or by facsimile are deemed original for all purposes.

10.7 Construction. Headings are for convenience only and do not affect interpretation. The singular includes the plural and vice versa.

11. EXECUTION BLOCK

IN WITNESS WHEREOF, Principal has executed this Instrument on the Effective Date.

11.1 Principal

[PRINCIPAL LEGAL NAME]
Date: _____

11.2 Notary Acknowledgment

State of Texas §
County of ______ §

This instrument was acknowledged before me on __ (date) by _____ (name of Principal).

Notary Public, State of Texas
My commission expires: _____

11.3 Agent’s Acknowledgment

I, [AGENT LEGAL NAME], have read the “Important Information for Agent” and hereby accept appointment as Agent under this Instrument and agree to act in accordance with its terms and Texas law.

[AGENT LEGAL NAME]
Date: _____

[Optional: Add Successor Agent Acknowledgment lines]

[// GUIDANCE:
1. If the Instrument will be used to convey real property interests, record an original (or certified copy) in the real-property records of each county where the property is located.
2. Provide executed copies to all relevant financial institutions.
3. Maintain the original in a secure but accessible location known to the Agent.]