DURABLE FINANCIAL POWER OF ATTORNEY

(Vermont – Uniform Power of Attorney Act Compliant)

TABLE OF CONTENTS

1. Document Header ............................................................. 2
2. Definitions .................................................................. 2
3. Appointment & Grant of Authority ............................................. 4
4. Agent’s Fiduciary Duties; Representations & Warranties ........................ 7
5. Scope of Powers ................................................................ 8
   5.1 General Authority Granted .................................................. 8
   5.2 Specific “Hot” Powers (Express Authorization Required) ..................... 10
6. Limitations of Liability; Indemnification; Liability Caps .................... 12
7. Revocation, Resignation, Suspension & Termination ............................. 13
8. Default & Remedies ............................................................ 15
9. Dispute Resolution ............................................................ 16
10. General Provisions ........................................................... 17
11. Execution Block (Principal) .................................................. 19
12. Acknowledgement of Agent ..................................................... 20
13. Notary Public Certificate .................................................... 21
14. Optional Second Witness Attestation ......................................... 22

1. DOCUMENT HEADER

THIS DURABLE FINANCIAL POWER OF ATTORNEY (this “Power of Attorney” or “Instrument”) is executed and delivered on [EFFECTIVE DATE] (the “Effective Date”) by [FULL LEGAL NAME OF PRINCIPAL], residing at [PRINCIPAL ADDRESS] (the “Principal”).

RECITALS
A. The Principal desires to designate an agent to act on the Principal’s behalf with respect to financial and property matters, and intends that this Power of Attorney be durable so as not to be affected by the Principal’s subsequent incapacity.
B. This Instrument is executed pursuant to, and shall be interpreted in accordance with, the Vermont Uniform Power of Attorney Act, as amended from time to time (the “Act”).

2. DEFINITIONS

Unless the context otherwise requires, the following capitalized terms shall have the meanings set forth below. Defined terms include their singular and plural forms and the masculine, feminine, and neuter genders. Cross-references in parentheses indicate the primary Section where the term is first used.

“Act” – has the meaning given in the Recitals. (1)

“Agent” – the individual or entity appointed in Section 3.1, together with any Successor Agent who may serve pursuant to Section 3.2. (3.1)

“Assets Under Management” – the total fair market value of all property subject to this Power of Attorney that is actually held, possessed, or controlled by the Agent at the time a claim subject to Section 6 arises. (6)

“Durable” – having the effect that the authority granted herein is not terminated by the Principal’s incapacity. (Header)

“Forum Court” – the Probate Division of the Vermont Superior Court sitting in the county where the Principal then resides or, if the Principal is deceased, where the estate is or could be opened. (9.1)

“Hot Powers” – those specific authorities listed in Section 5.2 that require express and conspicuous authorization by the Principal. (5.2)

“Limited Arbitration” – the procedure described in Section 9.3, pursuant to which certain disputes may be submitted to arbitration. (9.3)

“Liability Cap” – has the meaning set forth in Section 6.3. (6.3)

“Person” – any natural person, trust, estate, partnership, limited liability company, corporation, or other legal or commercial entity. (General)

“Principal” – has the meaning given in the Document Header. (Header)

“Property” – any interest in real or personal property, tangible or intangible, wherever located. (5)

“Successor Agent” – an individual appointed pursuant to Section 3.2 to serve if the initial Agent is unable or unwilling to act. (3.2)

3. APPOINTMENT & GRANT OF AUTHORITY

3.1 Designation of Agent

The Principal hereby designates and appoints:
• Name: [AGENT FULL LEGAL NAME]
• Address: [AGENT ADDRESS]
• Telephone/Email: [CONTACT INFO]
to serve as the Principal’s true and lawful “Agent” for all purposes set forth in this Instrument.

3.2 Designation of Successor Agent(s)

[// GUIDANCE: Insert “None” if no successor desired.]
1. First Successor Agent:
• Name: [1ST SUCCESSOR NAME]
• Address: [ADDRESS]
2. Second Successor Agent (optional):
• Name: [2ND SUCCESSOR NAME]
• Address: [ADDRESS]

A Successor Agent shall act only if each preceding Agent is unable or unwilling to serve.

3.3 Multiple Agents; Coordination

If more than one Agent is serving concurrently, they shall act:
[SELECT ONE]
☐ Jointly ☐ Jointly and Severally ☐ Independently with Notice to Co-Agents

3.4 Grant of Durable Authority

The Agent is authorized to act for the Principal with respect to all matters described in Sections 5.1 and 5.2, subject to any limitations stated in Section 5.3 or the Special Instructions box below, and this grant shall be durable and survive the Principal’s incapacity.

3.5 Special Instructions (Optional)

[PLACEHOLDER FOR ADDITIONAL LIMITATIONS, GUIDANCE, OR INSTRUCTIONS]

4. AGENT’S FIDUCIARY DUTIES; REPRESENTATIONS & WARRANTIES

The Agent acknowledges and agrees that, in addition to all duties imposed by law, the Agent shall:

a. Act loyally for the Principal’s benefit and in good faith;
b. Avoid self-dealing, conflicts of interest, and commingling of property absent express authorization;
c. Keep complete and accurate records of all transactions, including contemporaneous receipts and statements, for a minimum of seven (7) years;
d. Provide annual accountings to the Principal and, upon request, to the Principal’s legal representative or the Forum Court;
e. Preserve the Principal’s estate plan to the extent actually known;
f. Make decisions using the prudent investor standard; and
g. Comply with all other duties and obligations set forth in the Act.

The Agent further represents and warrants as of each act taken that:

1. The Agent is not disqualified under applicable law from serving;
2. No event of resignation, suspension, or removal has occurred under Section 7;
3. Any required bond or insurance is in force; and
4. The Agent will, upon reasonable request, furnish third parties with a certificate of incumbency or similar proof of authority.

5. SCOPE OF POWERS

5.1 General Authority Granted

The Agent may exercise all powers available to an agent under the Act with respect to the following subject matters (each a “General Authority Category”):

1. Real Property transactions
2. Tangible Personal Property transactions
3. Stocks, Bonds, and Other Securities
4. Banks and Financial Institutions
5. Digital Assets and Electronic Communications
6. Business Operations and Entity Interests
7. Insurance and Annuities
8. Retirement Plans
9. Taxes
10. Claims and Litigation
11. Personal and Family Maintenance
12. Governmental Benefits
13. Safe Deposit Boxes
14. Any other Property interests or rights now or hereafter owned by the Principal

[// GUIDANCE: The above list tracks the Uniform Power of Attorney Act categories recognized in most states, including VT.]

5.2 Specific “Hot” Powers (Express Authorization Required)

The Principal must initial next to each Hot Power that the Principal wishes to grant. Absence of initials equals denial of the power.

[// GUIDANCE: Update “GIFT LIMIT” to reflect Principal’s tax planning objectives and current federal gift-tax exclusion.]

5.3 Limitation on Powers

Notwithstanding anything to the contrary, the Agent shall not:
a. Make, amend, or revoke the Principal’s Last Will and Testament;
b. Contract marriage for the Principal;
c. Vote in any public election on the Principal’s behalf;
d. Perform any act expressly prohibited by the Act or other applicable law; or
e. Exercise any power inconsistent with the Special Instructions or any court order binding on the Principal.

6. LIMITATIONS OF LIABILITY; INDEMNIFICATION; LIABILITY CAPS

6.1 Standard of Care & Exoneration

The Agent shall not be liable for any loss to the Principal’s estate arising from an act or omission made in good faith, in the Principal’s best interest, and in material compliance with this Instrument and the Act, except for losses resulting from the Agent’s gross negligence, willful misconduct, or breach of fiduciary duty.

6.2 Indemnification

The Principal shall indemnify and hold harmless the Agent from and against any and all claims, liabilities, expenses, and damages (including reasonable attorneys’ fees) incurred by the Agent, provided that the Agent acted within the scope of authority and in good faith.

6.3 Liability Cap

Notwithstanding Section 6.2, the aggregate liability of the Agent to the Principal under this Instrument arising out of any series of related acts or omissions shall not exceed the lesser of:
a. The Assets Under Management at the time the claim arises; or
b. $[CAP DOLLAR AMOUNT].

Nothing herein limits the Agent’s liability for intentional misconduct or acts taken in bad faith.

[// GUIDANCE: A liability cap is atypical in statutory POA forms but may be used for sophisticated financial relationships. Verify enforceability with Vermont counsel prior to client use.]

7. REVOCATION, RESIGNATION, SUSPENSION & TERMINATION

7.1 Revocation by Principal

The Principal may revoke this Power of Attorney at any time by:
a. A written revocation signed and acknowledged with the same formalities as this Instrument; or
b. Physically destroying all executed originals of this Instrument with intent to revoke.
Written notice of revocation should be provided to all known third parties who may have relied on this Instrument.

7.2 Automatic Termination

This Instrument shall terminate automatically upon the earliest to occur of:
1. The Principal’s death;
2. Full revocation pursuant to Section 7.1;
3. The Agent’s death, resignation, or incapacity without a willing and able Successor Agent; or
4. As otherwise mandated by the Act or order of the Forum Court.

7.3 Resignation of Agent

An Agent may resign by giving thirty (30) days’ written notice to:
i. The Principal;
ii. Any co-Agents; and
iii. Any Successor Agent named herein.
If the Principal is incapacitated, the Agent shall deliver such notice to the Forum Court for filing.

7.4 Suspension or Removal by Court

The Forum Court may suspend or remove the Agent and appoint a conservator, guardian, or temporary fiduciary if the Court finds that the Agent has breached fiduciary duties or other cause exists under the Act.

8. DEFAULT & REMEDIES

8.1 Events of Default

Each of the following constitutes an “Event of Default”:
a. Breach of fiduciary duty as determined by a court of competent jurisdiction;
b. Misappropriation or commingling of the Principal’s Property;
c. Failure to provide requested accountings within thirty (30) days of written demand; or
d. Violation of any express limitation in this Instrument.

8.2 Remedies

Upon an Event of Default, the Principal (or the Principal’s legal representative) may pursue any combination of:
1. Court-ordered accounting;
2. Injunctive relief to prevent further dissipation of assets;
3. Recovery of actual damages, plus double damages where authorized by law;
4. Attorneys’ fees and costs to the prevailing party;
5. Suspension, removal, or surcharge of the Agent by the Forum Court; and
6. Any other remedy available at law or equity.

9. DISPUTE RESOLUTION

9.1 Governing Law

This Instrument and any dispute arising hereunder shall be governed by and construed in accordance with the internal laws of the State of Vermont, without regard to its conflict-of-laws principles.

9.2 Forum Selection & Jury Waiver

Exclusive jurisdiction and venue shall lie with the Forum Court described in Section 2 unless the parties mutually agree to Limited Arbitration under Section 9.3. The parties knowingly and voluntarily waive trial by jury ONLY with respect to equitable actions for injunctive relief brought to enforce fiduciary duties.

9.3 Limited Arbitration

Subject to the foregoing, any monetary claim not exceeding $[ARBITRATION CAP] may, at the election of either the Principal (or the Principal’s representative) or the Agent, be submitted to binding arbitration administered by [ARBITRATION PROVIDER] under its expedited rules. Injunctive relief and disputes regarding Hot Powers are expressly excluded from arbitration.

9.4 Preservation of Injunctive Relief

Nothing in this Section 9 shall limit the right of the Principal or any interested Person to seek temporary, preliminary, or permanent injunctive relief from the Forum Court to protect the Principal or the Principal’s Property.

10. GENERAL PROVISIONS

10.1 Amendment & Waiver – This Instrument may be amended only by a writing executed with the same formalities as this Instrument. No waiver of any provision shall be effective unless in writing, and no waiver shall be deemed a waiver of any subsequent breach.

10.2 Assignment – The Agent may not assign or delegate the Agency to third parties except as expressly permitted in a duly-initialed Hot Power under Section 5.2(e).

10.3 Successors & Assigns – This Instrument shall be binding upon and inure to the benefit of the Principal, the Agent, and their respective heirs, representatives, successors, and permitted assigns.

10.4 Severability – If any provision is held unenforceable, the remainder shall be severed and enforced to the fullest extent permitted by law, and the Forum Court is authorized to reform this Instrument to effectuate the Principal’s intent.

10.5 Integration – This Instrument constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior powers of attorney concerning financial matters.

10.6 Counterparts & Electronic Signatures – This Instrument may be executed in one or more counterparts (including by electronic signature), each of which shall be deemed an original and all of which together constitute one and the same instrument.

10.7 Construction – Headings are for convenience only and shall not affect interpretation. No rule of strict construction shall be applied against either party.

11. EXECUTION BLOCK (PRINCIPAL)

I, [PRINCIPAL NAME], have read the foregoing Durable Financial Power of Attorney and understand its contents. I am of sound mind, am executing this Instrument voluntarily, and intend to grant the powers herein.

Principal’s Signature: ____
Printed Name: ______
Date: ______

12. ACKNOWLEDGEMENT OF AGENT

I, [AGENT NAME], hereby accept appointment as Agent under the foregoing Instrument, acknowledge the fiduciary duties imposed by Vermont law, and agree to act in accordance with the terms herein.

Agent’s Signature: ______
Printed Name: _______
Date: ______

[// GUIDANCE: Each Successor Agent should sign an identical acknowledgement before commencing service.]

13. NOTARY PUBLIC CERTIFICATE

State of Vermont )
County of ____ ) ss.

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 Durable Financial Power of Attorney, and acknowledged that he/she executed the same as his/her free act and deed.

Notary Public
My commission expires: ____

14. OPTIONAL SECOND WITNESS ATTESTATION

I attest that [PRINCIPAL NAME], the Principal, voluntarily signed or directed another to sign this Durable Financial Power of Attorney in my presence and that he/she appeared to be of sound mind and free from duress at the time of execution.

Witness Signature: ___
Printed Name: _____
Address: ____
Date: ______

[// GUIDANCE: Vermont law requires acknowledgment before a Notary Public. A disinterested witness is strongly recommended, and in certain circumstances (e.g., when the Principal resides in a long-term care facility), may be required by facility policy or best practice.]