DURABLE FINANCIAL POWER OF ATTORNEY
Virginia Uniform Power of Attorney Act (Va. Code Ann. § 64.2-1600 et seq.)
[// GUIDANCE: This is a court-ready template drafted for use by licensed Virginia practitioners. Customize bracketed fields, verify statutory citations, and tailor powers to the client’s objectives before execution.]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution & Acknowledgment
- Exhibits (Optional)
1. DOCUMENT HEADER
1.1 Title and Parties
This Durable Financial Power of Attorney (“Power” or “Agreement”) is executed as of [EFFECTIVE DATE] (the “Effective Date”) by [PRINCIPAL NAME], residing at [PRINCIPAL ADDRESS] (“Principal”), in favor of [AGENT NAME], residing at [AGENT ADDRESS] (“Agent”).
1.2 Recitals
A. Principal desires to appoint Agent to act on Principal’s behalf with respect to the management of Principal’s property and financial affairs.
B. Principal intends this Power to be durable and to remain effective notwithstanding Principal’s subsequent disability or incapacity.
C. This Power is governed by, and shall be construed in accordance with, the Virginia Uniform Power of Attorney Act, Va. Code Ann. § 64.2-1600 et seq. (the “Act”) and other applicable Virginia law.
2. DEFINITIONS
For purposes of this Power:
“Act” means the Virginia Uniform Power of Attorney Act, Va. Code Ann. § 64.2-1600 et seq.
“Assets Under Management” means all property, accounts, and other assets over which Agent has authority pursuant to this Power at the time a claim subject to Section 7 arises.
“Durable” has the meaning assigned in Va. Code Ann. § 64.2-1600, namely, not terminated by the Principal’s incapacity.
“Incidental Authority” means all powers reasonably necessary to effectuate a granted authority, including the power to sign ancillary documents, appoint advisors, and incur reasonable expenses.
“Successor Agent” means any person designated in Section 3.3 to serve when the initial Agent is unable or unwilling to serve.
[// GUIDANCE: Add, delete, or modify defined terms as needed for specialized transactions.]
3. OPERATIVE PROVISIONS
3.1 Grant of General Authority
Subject to the limitations set forth herein, Principal grants Agent full power and authority to act for Principal with respect to all matters that the Principal may lawfully delegate concerning the Principal’s property, finances, and other affairs, including all powers enumerated in Va. Code Ann. § 64.2-1622 unless expressly restricted below.
3.2 Specific Authorities
Without limiting the foregoing, Agent is authorized to:
(a) Banking—Open, close, and manage deposit accounts;
(b) Real Property—Buy, sell, lease, and encumber;
(c) Personal Property—Buy, sell, and pledge tangible and intangible property;
(d) Business Operations—Operate, manage, or terminate business entities;
(e) Tax Matters—Prepare, sign, and file returns and other tax documents;
(f) Insurance—Acquire, modify, or terminate insurance and annuity contracts;
(g) Retirement Plans—Select payment options and withdraw benefits;
(h) Digital Assets—Access, control, or transfer digital accounts;
(i) Gifts—Make gifts, subject to the limitations of Section 3.4(i);
(j) All other acts reasonably necessary to carry out the foregoing powers.
[// GUIDANCE: Cross-reference any restricted or expanded powers in client engagement letter.]
3.3 Successor Agents
If the Agent dies, resigns, becomes incapacitated, or is otherwise unable to serve, the following persons shall serve, in the order named, as Successor Agent:
1. [SUCCESSOR AGENT #1 NAME]
2. [SUCCESSOR AGENT #2 NAME]
3.4 Restrictions and Special Instructions
(a) No Agent may make or revoke Principal’s Last Will and Testament.
(b) Self-dealing is prohibited unless specifically authorized in Exhibit A.
(c) Gift-giving authority is limited to the annual federal gift-tax exclusion per donee unless expanded in Exhibit A.
(d) The Agent shall not delegate authority except as permitted by Va. Code Ann. § 64.2-1612(B).
3.5 Effectiveness and Durability
This Power is effective immediately upon execution and acknowledgment and shall not be affected by the subsequent disability or incapacity of the Principal.
3.6 Revocation Procedures
Principal may revoke this Power at any time by:
(a) Executing a written revocation; and
(b) Delivering written notice to the Agent and, where appropriate, to any third party relying on the Power.
Revocation is effective against the Agent upon delivery and against third parties upon actual knowledge pursuant to Va. Code Ann. § 64.2-1608.
4. REPRESENTATIONS & WARRANTIES
4.1 Principal Representations
(a) Capacity—Principal is at least 18 years of age and of sound mind.
(b) Ownership—Principal has full title to, or authority over, the assets subject to this Power.
4.2 Agent Representations
(a) Acceptance—Agent accepts the fiduciary obligations imposed by the Act and this Power.
(b) Qualification—Agent is not disqualified from serving by reason of criminal conviction or other legal restraint.
4.3 Survival
All representations and warranties survive revocation of this Power with respect to acts taken during its term.
5. COVENANTS & RESTRICTIONS
5.1 Fiduciary Standard
Agent shall exercise fiduciary duties of loyalty, care, and good faith in accordance with Va. Code Ann. § 64.2-1612.
5.2 Record-Keeping
Agent shall maintain accurate records of all receipts, disbursements, and transactions and shall provide an accounting to Principal, Principal’s guardian or conservator, or other authorized person within 30 days of written request.
5.3 Notice of Incapacity
Agent shall promptly notify [DESIGNATED PERSON] upon knowledge of the Principal’s incapacity.
5.4 Cooperation with Health Care Agents
Agent shall coordinate with any health care agent appointed under an advance directive to ensure consistent decision-making.
6. DEFAULT & REMEDIES
6.1 Events of Default
The following constitute defaults:
(a) Breach of fiduciary duty;
(b) Misappropriation or self-dealing beyond authorized limits;
(c) Failure to account within required time;
(d) Incapacity or resignation without qualified Successor Agent.
6.2 Cure Period
Except for willful misconduct, Agent has 15 days after receipt of written notice to cure any default.
6.3 Remedies
Upon default, Principal or any interested person may seek:
(a) Temporary or permanent injunctive relief;
(b) Removal of Agent;
(c) Restitution and disgorgement of profits;
(d) Attorneys’ fees and costs under Va. Code Ann. § 64.2-1614.
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
Absent breach of fiduciary duty, bad faith, or reckless indifference, Agent’s liability to Principal is limited in the aggregate to the lesser of:
(a) The diminution in value of Assets Under Management attributable to Agent’s conduct; or
(b) The total Assets Under Management at the time of the act or omission.
7.3 Insurance
Agent may, at Principal’s expense, obtain errors-and-omissions or fiduciary liability insurance in an amount not less than [COVERAGE AMOUNT].
7.4 Force Majeure
Agent is not liable for failure to act during events beyond Agent’s reasonable control (e.g., natural disasters, wars, governmental actions).
8. DISPUTE RESOLUTION
8.1 Governing Law
This Power and all disputes arising hereunder are governed by the laws of the Commonwealth of Virginia without regard to conflict-of-laws principles.
8.2 Forum Selection
Exclusive venue lies in the [NAME OF VIRGINIA CIRCUIT COURT] sitting in probate jurisdiction.
8.3 Limited Arbitration
Monetary claims not exceeding $50,000 shall be submitted to binding arbitration administered by [ARBITRATION PROVIDER] under its expedited rules. Equity claims, including requests for injunctive or fiduciary relief, are expressly exempt.
8.4 Jury Trial Waiver
To the fullest extent permitted by Virginia law, the parties knowingly waive jury trial for any claim subject to Section 8.3 arbitration. All other claims shall be tried without a jury unless otherwise required by statute.
8.5 Injunctive Relief Preservation
Nothing herein limits any court’s authority to grant preliminary or permanent injunctive relief to protect the Principal’s assets.
9. GENERAL PROVISIONS
9.1 Amendment and Waiver—Principal may amend this Power only by written instrument executed with the same formalities as this Power. No waiver is effective unless in writing.
9.2 Assignment—Agent may not delegate or assign duties except as expressly permitted by Section 3.4(d).
9.3 Successors and Assigns—This Power is binding upon the Principal, Agent, and their respective heirs, successors, and assigns.
9.4 Severability—If any provision is held invalid, the remaining provisions shall remain in full force.
9.5 Integration—This document constitutes the entire agreement between the parties with respect to the subject matter hereof.
9.6 Counterparts—This Power may be executed in counterparts, each of which is deemed an original.
9.7 Electronic Signatures—Electronic signatures and remote online notarization are permitted to the extent allowed by Va. Code Ann. § 47.1-2 et seq. and other applicable law.
10. EXECUTION & ACKNOWLEDGMENT
Principal:
[PRINCIPAL NAME]
Date: _______
Agent (Acknowledgment of Appointment and Fiduciary Duties):
I, [AGENT NAME], accept my appointment as Agent and acknowledge my fiduciary duties under the Act.
[AGENT NAME]
Date: _______
Notary Public
Commonwealth of Virginia, City/County of ______, to-wit:
Subscribed, sworn to, and acknowledged before me this _ day of _, 20____, by [PRINCIPAL NAME].
Notary Public
My Commission Expires: ___
Notary Registration No.: _____
[// GUIDANCE: Virginia does not require separate witnesses for a financial POA, but institutional practice may vary. Add witness lines below if desired.]
11. EXHIBITS (Optional)
Exhibit A – Expanded or Restricted Powers
Exhibit B – Sample Form of Written Revocation
Exhibit C – Accountings Template
[// GUIDANCE: Attach only those exhibits relevant to the engagement. Update section numbers if exhibits are added or removed.]
[// GUIDANCE: Prior to delivery, confirm that (i) the notary acknowledgment conforms to current Virginia notarial wording requirements, (ii) all placeholders are completed, (iii) any gifting provisions beyond annual exclusion amounts are specifically authorized, and (iv) financial institutions that will rely on this POA do not require their proprietary forms.]