DURABLE FINANCIAL POWER OF ATTORNEY

(State of Alabama – Ala. Code §§ 26-1A-101 et seq.)

[// GUIDANCE: This template is drafted to comply with the Alabama Uniform Power of Attorney Act (“AUPOAA”), Ala. Code §§ 26-1A-101 et seq. Review and customize all bracketed text. Confirm with local counsel that execution formalities and notarization blocks comport with the latest Alabama probate practice.]

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 Title and Parties
This Durable Financial Power of Attorney (“Power of Attorney” or “Agreement”) is executed as of [EFFECTIVE DATE] (the “Effective Date”) by [FULL LEGAL NAME OF PRINCIPAL], residing at [ADDRESS] (“Principal”), appointing [FULL LEGAL NAME OF AGENT], residing at [ADDRESS] (“Agent”).

1.2 Recitals
A. Principal desires to appoint Agent to act on Principal’s behalf with respect to the matters set forth herein and under the AUPOAA.
B. This Power of Attorney is intended to be durable and shall not be affected by Principal’s subsequent incapacity.
C. The parties intend that Alabama law govern all issues arising hereunder.

2. DEFINITIONS

The following terms shall have the meanings indicated below. Capitalized terms used but not defined have the meanings assigned by the AUPOAA.

“Alternate Agent” – [NAME OR “None”], appointed pursuant to § 3.7.
“Disability” or “Incapacity” – A finding under Ala. Code § 26-1A-102(5).
“Durable” – Having the effect described in Ala. Code § 26-1A-104.
“Assets Under Management” – All property subject to Agent’s authority at any given time.
“Hot Powers” – Those powers listed in Ala. Code § 26-1A-201(a)(1)–(9) requiring express grant.
“Probate Court” – The probate court of [COUNTY], Alabama.

3. OPERATIVE PROVISIONS

3.1 Grant of General Authority

Subject to the limitations herein, Principal grants Agent authority to act for Principal in all matters authorized by Ala. Code § 26-1A-204 through § 26-1A-217, inclusive.

3.2 Specific “Hot Powers”

Pursuant to Ala. Code § 26-1A-201(a), Principal expressly authorizes Agent to:
a. Create, amend, revoke, or terminate an inter vivos trust.
b. Make gifts not exceeding [ANNUAL LIMIT OR “£16,000 per donee per calendar year”].
c. Create or change rights of survivorship.
d. Create or change beneficiary designations.
e. Delegate authority granted herein.
f. Waive the Principal’s right to be a beneficiary of a joint and survivor annuity.
g. Exercise fiduciary powers that the Principal has authority to delegate.
h. Disclaim or refuse an interest in property.
i. Access safe-deposit boxes.

[// GUIDANCE: Remove any “Hot Power” the Principal does not wish to grant.]

3.3 Banking and Financial Transactions

Agent may, without limitation, open, close, and manage deposit accounts; endorse instruments; initiate wire transfers; and otherwise transact with financial institutions on Principal’s behalf.

3.4 Real Property

Agent may buy, sell, encumber, lease, or otherwise deal with real property interests of Principal, including execution and delivery of deeds, mortgages, and closing documents.

3.5 Tax Matters

Agent may prepare, sign, and file federal, state, and local tax returns and represent Principal before taxing authorities.

3.6 Personal Property & Digital Assets

Agent may manage tangible personal property and exercise authority over digital assets in accordance with Ala. Code § 26-1A-216.

3.7 Alternate & Successor Agents

If Agent is unable or unwilling to serve, [ALTERNATE AGENT] shall serve with the same authority herein. Acceptance may be by execution of the signature block or by conduct pursuant to Ala. Code § 26-1A-113.

3.8 Co-Agents (Optional)

[PLACEHOLDER—Insert co-agency mechanics or strike section.]

3.9 Effective Date; Springing Option

This Power of Attorney becomes effective on the Effective Date [OR “upon written certification of incapacity by two licensed physicians”].

3.10 Term

Authority granted herein terminates upon the earliest of:
1. Principal’s revocation pursuant to § 8.3;
2. Agent’s resignation, death, or incapacity without a successor;
3. Judicial termination under Ala. Code § 26-1A-110.

4. REPRESENTATIONS & WARRANTIES

4.1 Principal represents that:
a. Principal is at least 19 years old, of sound mind, and under no duress.
b. Execution of this Power of Attorney does not violate any other agreement.

4.2 Agent represents that:
a. Agent is at least 19 years old and not disqualified under Ala. Code § 26-1A-110.
b. Agent will exercise authority in good faith and in accordance with Principal’s reasonable expectations and best interest.

4.3 Survival
All representations and warranties survive revocation or termination to the extent necessary to enforce the obligations hereunder.

5. COVENANTS & RESTRICTIONS

5.1 Fiduciary Duties
Agent shall comply with the duties set forth in Ala. Code § 26-1A-114, including:
a. Act in good faith.
b. Act loyally for the Principal’s benefit.
c. Keep adequate records.
d. Preserve the Principal’s estate plan, if consistent with Principal’s best interest.

5.2 Self-Dealing Prohibition
Except as expressly authorized in § 3.2 or by separate instrument, Agent shall not engage in self-dealing transactions.

5.3 Notice Obligations
Agent shall provide written notice to Principal (or, if incapacitated, to Principal’s guardian or conservator) of any material transaction within [15] days.

5.4 Records & Accountings
Upon written request by Principal, a court, or a “designated monitor” [NAME OR “None”], Agent shall deliver a full accounting within [30] days.

6. DEFAULT & REMEDIES

6.1 Events of Default
The following constitute “Events of Default”:
a. Breach of fiduciary duty.
b. Misappropriation, waste, or conversion of Principal’s assets.
c. Failure to provide an accounting under § 5.4.
d. Violation of any restriction herein.

6.2 Notice & Cure
Principal (or an interested person under Ala. Code § 26-1A-116) shall give written notice specifying the Event of Default. Agent has [10] days to cure, except where irreparable harm exists.

6.3 Remedies
On an uncured Event of Default, Principal or any interested person may seek:
a. Suspension or termination of Agent’s authority;
b. Injunctive relief;
c. Surcharge, damages, and restitution;
d. Recovery of reasonable attorneys’ fees and costs.

7. RISK ALLOCATION

7.1 Indemnification of Agent
Principal shall indemnify Agent against any claim, expense, or liability arising out of the Agent’s good-faith acts or omissions, except to the extent resulting from Agent’s breach of fiduciary duty or willful misconduct.

7.2 Limitation of Agent’s Liability
Agent’s liability for monetary damages shall not exceed the Assets Under Management at the time the cause of action accrues, except for acts of fraud or intentional wrongdoing.

7.3 Insurance
[OPTIONAL—Insert requirement that Agent maintain fiduciary liability insurance.]

7.4 Force Majeure
Agent shall not be liable for failure to act due to events beyond Agent’s reasonable control, including natural disasters, war, or disruptions of financial markets.

8. DISPUTE RESOLUTION

8.1 Governing Law
This Power of Attorney is governed by the laws of the State of Alabama, without regard to conflict-of-laws principles.

8.2 Forum Selection
Exclusive jurisdiction and venue for proceedings arising hereunder shall lie in the [COUNTY] Probate Court.

8.3 Arbitration (Limited)
Disputes solely between co-agents or between Agent and Alternate Agent concerning internal allocation of authority shall be resolved by binding arbitration administered by [ARBITRATION PROVIDER] under its expedited rules. Matters involving Principal’s capacity, fiduciary breaches, or injunctive relief are excluded.

8.4 Jury Waiver
To the fullest extent permitted by law, the parties waive trial by jury for any claim except allegations of Agent fraud or elder abuse, for which jury trial remains available.

8.5 Injunctive Relief Preservation
Nothing herein limits any party’s right to seek temporary, preliminary, or permanent injunctive relief in Probate Court to prevent fiduciary harm.

9. GENERAL PROVISIONS

9.1 Amendment & Waiver
Principal may amend or waive provisions of this Power of Attorney only by a signed, notarized writing referencing this instrument.

9.2 Revocation
Principal may revoke this Power of Attorney at any time by:
a. Delivering a signed, notarized revocation to Agent and any third party relying on it; or
b. Executing a subsequent power of attorney that expressly revokes this instrument.

9.3 Assignment & Delegation
Agent may not assign this Power of Attorney but may delegate authority as permitted under § 3.2(e) and Ala. Code § 26-1A-113.

9.4 Successors & Assigns
This instrument is binding upon and inures to the benefit of Principal, Agent, their respective heirs, legal representatives, and permitted assigns.

9.5 Severability
If any provision is held unenforceable, the remaining provisions shall remain in full force and construed to effectuate the parties’ intent.

9.6 Integration
This document constitutes the entire agreement between Principal and Agent regarding the subject matter and supersedes all prior powers of attorney except as expressly incorporated herein.

9.7 Counterparts; Electronic Signatures
This Power of Attorney may be executed in counterparts and delivered via electronic means. Each counterpart is deemed an original, together constituting one instrument.

10. EXECUTION BLOCK

10.1 Principal’s Signature & Acknowledgment

I, [PRINCIPAL NAME], have read and understand this Durable Financial Power of Attorney and execute it voluntarily on the date stated below.

| _____ | _______ |
| Signature of Principal | Date |

10.2 Witness Signatures (recommended though not required by statute)

| Witness #1 ____ | Address ____ |
| Witness #2 ____ | Address ____ |

10.3 Notary Public (Required)

State of Alabama )
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 individual whose name is subscribed above, and acknowledged that he/she executed the same for the purposes therein contained.

| _____ |
| Notary Public |
My commission expires: ___

10.4 Agent’s Acceptance

I, [AGENT NAME], have accepted appointment as Agent and agree to act in accordance with the terms of this Power of Attorney and Alabama law.

| _____ | _______ |
| Signature of Agent | Date |

10.5 Alternate Agent’s Acceptance (if applicable)

| _____ | _______ |
| Signature of Alternate Agent | Date |

[// GUIDANCE: File or record this Power of Attorney with the Probate Court or financial institutions only if required by the receiving party. Consider providing certified copies to institutions in advance to avoid delays when authority must be exercised.]