DURABLE FINANCIAL POWER OF ATTORNEY

(State of North Carolina)

[// GUIDANCE: This template is drafted to comply with the North Carolina Uniform Power of Attorney Act, N.C. Gen. Stat. § 32C-1-101 et seq. Insert all bracketed information and review every optional provision for relevance before execution.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties of Agent
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block
11. Statutory Notices & Agent Certification

1. DOCUMENT HEADER

1.1 Title & Parties
This Durable Financial Power of Attorney (“Power of Attorney” or “POA”) is executed on this ___ day of _, 20 (“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 financial and property matters pursuant to N.C. Gen. Stat. § 32C-1-104(a).
B. This Power of Attorney is intended to be durable and shall not be affected by Principal’s subsequent incapacity.
C. Consideration is deemed given by mutual promises herein and the acceptance of fiduciary duties by Agent.

2. DEFINITIONS

“Act” – the North Carolina Uniform Power of Attorney Act, N.C. Gen. Stat. § 32C-1-101 et seq.
“Assets Under Management” – all property subject to Agent’s authority at any given time.
“Durable” – having the meaning set forth in N.C. Gen. Stat. § 32C-1-104(a).
“Incidental Powers” – all ancillary authority reasonably necessary to effectuate the express powers granted herein.
“Successor Agent” – any person designated under § 3.2 to serve if the initial Agent is unable or unwilling to act.

3. OPERATIVE PROVISIONS

3.1 Grant of General Authority

Subject to the limitations herein, Principal grants Agent authority to act with respect to all matters listed in N.C. Gen. Stat. § 32C-2-201 through § 32C-2-216, including but not limited to:
a. Real Property;
b. Tangible Personal Property;
c. Stocks & Bonds;
d. Banks & Financial Institutions;
e. Operation of Entity or Business;
f. Insurance & Annuities;
g. Estates, Trusts & Beneficiaries;
h. Personal & Family Maintenance;
i. Retirement Plans;
j. Taxes.

[// GUIDANCE: Delete any categories you do NOT intend to authorize and initial next to deleted powers per best practice.]

3.2 Successor & Co-Agents (Optional)

1. First Successor Agent: [NAME] of [ADDRESS].
2. Second Successor Agent: [NAME] of [ADDRESS].
3. Co-Agent Authority: (check one)
   ☐ Joint ☐ Independent ☐ Majority

3.3 Special Instructions (Optional)

[INSERT any limitations, springing conditions, gifting authority caps, or other specific directives.]

3.4 Durable Nature

Pursuant to § 32C-1-104, this POA shall continue in effect notwithstanding Principal’s incapacity or mental incompetence.

3.5 Effective Date

(check one)
☐ Immediately upon execution.
☐ Upon written determination of incapacity by (i) two licensed physicians OR (ii) the Clerk of Superior Court, whichever occurs first.

3.6 Nomination of Guardian or Conservator (Optional)

Principal nominates Agent to serve as guardian of the estate or person in any future proceeding under Article 6 of Chapter 35A of the North Carolina General Statutes.

3.7 Compensation & Reimbursement

Agent is entitled to (check one):
☐ No compensation beyond reimbursement of reasonable expenses.
☐ Compensation consistent with N.C. Gen. Stat. § 32C-1-112(b) at the rate of ____.

3.8 Recordation & Real Property

If this POA is to be used for real estate transactions, the original or a certified copy shall be recorded in the Office of the Register of Deeds for the county where the property is located.

3.9 Revocation Procedures

Principal may revoke this POA:
a. By a subsequent written instrument delivered to Agent;
b. By destroying all executed originals with intent to revoke;
c. Automatically upon termination under § 6.1 below.
Notice of revocation becomes effective upon actual receipt by Agent per § 32C-1-110.

4. REPRESENTATIONS & WARRANTIES OF AGENT

4.1 Agent accepts the appointment and represents that:
a. Agent is eligible to serve and has full legal capacity;
b. Agent will act in good faith, within the scope of authority, and in accordance with Principal’s reasonable expectations and best interests;
c. Agent will maintain contemporaneous records in compliance with § 32C-1-114; and
d. Agent will disclose any conflict of interest promptly.

4.2 Survival
The representations and warranties of Agent shall survive termination of this POA to the maximum extent permitted by law.

5. COVENANTS & RESTRICTIONS

5.1 Fiduciary Duties
Agent shall:
a. Act loyally for Principal’s benefit;
b. Avoid commingling of funds;
c. Act with care, competence, and diligence;
d. Cooperate with any person with authority to protect Principal’s welfare.

5.2 Notice Obligations
Agent shall provide written notice to Principal (or Principal’s guardian/conservator) within ten (10) days of:
i. Resignation;
ii. Change of legal name or address;
iii. Knowledge of any bankruptcy or incapacity affecting Agent.

5.3 Gifting & Self-Dealing Restrictions
Unless expressly authorized in § 3.3, Agent shall not make gifts, loans, or transfers to Agent or Agent’s dependents.

6. DEFAULT & REMEDIES

6.1 Termination Events
This POA terminates upon the earliest of:
a. Written revocation by Principal;
b. Death of Principal;
c. Court-appointed fiduciary superseding this POA;
d. Agent’s death, resignation, or incapacity without a Successor Agent.

6.2 Remedies
Upon breach of fiduciary duty, Principal or Principal’s estate may seek:
a. Accounting;
b. Surcharge & restitution;
c. Injunctive relief;
d. Attorneys’ fees and costs as provided in § 6.3.

6.3 Attorneys’ Fees
A prevailing party in any proceeding arising out of this POA is entitled to reasonable attorneys’ fees and costs, as determined by the Clerk or court of competent jurisdiction.

7. RISK ALLOCATION

7.1 Indemnification by Agent
Agent shall indemnify, defend, and hold harmless Principal and Principal’s estate against all losses, liabilities, and expenses arising from Agent’s breach of fiduciary duty or unlawful acts.

7.2 Limitation of Liability
Agent’s liability to Principal shall be capped at the fair market value of the Assets Under Management at the time of the breach, except in cases of gross negligence, intentional misconduct, or fraud.

7.3 Reliance by Third Parties
Third parties may rely on the validity of this POA and the authority of Agent unless they have actual knowledge of termination or invalidity per § 32C-1-120.

7.4 Force Majeure
Agent shall not be liable for failure to act when prevented by events beyond reasonable control, including natural disasters, governmental acts, or system failures.

8. DISPUTE RESOLUTION

8.1 Governing Law
This POA and any disputes hereunder shall be governed by the laws of the State of North Carolina.

8.2 Forum Selection
Exclusive venue shall lie in the [COUNTY] County Clerk of Superior Court (Probate Division) or any court exercising probate jurisdiction therein.

8.3 Limited Arbitration
Except for injunctive or accounting relief, any claim between Principal (or Principal’s estate) and Agent exceeding $50,000 shall be submitted to binding arbitration under the North Carolina Revised Uniform Arbitration Act. The award may be enforced by the probate court.

8.4 Jury Waiver
To the fullest extent permitted by law, the parties waive trial by jury on all arbitrable issues. Non-arbitrable issues remain subject to jury trial rights.

8.5 Preservation of Injunctive Relief
Nothing herein limits the court’s power to issue temporary or permanent equitable relief to protect Principal’s assets or welfare.

9. GENERAL PROVISIONS

9.1 Amendments & Waivers
Must be in a signed writing by Principal and acknowledged before a notary. No waiver of any provision shall be deemed continuing unless expressly stated.

9.2 Assignment
Agent may not delegate or assign authority except as expressly provided under § 32C-1-111 or this POA.

9.3 Successors & Assigns
This POA binds Agent, Principal, and their respective heirs, successors, assigns, and personal representatives.

9.4 Severability
If any provision is held invalid, remaining provisions shall remain in effect to the maximum extent permissible.

9.5 Integration
This document constitutes the entire agreement regarding the powers granted and supersedes all prior POAs executed by Principal, except as otherwise stated in § 3.9.

9.6 Counterparts; Electronic Signatures
This POA may be executed in counterparts and delivered electronically; each counterpart is deemed an original.

10. EXECUTION BLOCK

Principal

[PRINCIPAL NAME]
Date: _, 20

STATE OF NORTH CAROLINA
COUNTY OF ______

I, ____, a Notary Public, certify that [PRINCIPAL NAME] personally appeared before me this day, acknowledged the due execution of the foregoing Power of Attorney, and affirmed that it is intended to be durable.

Witness my hand and official seal, this ___ day of _, 20.

Notary Public
My Commission Expires: ____

Agent Acceptance

I, [AGENT NAME], accept the appointment as Agent and agree to act in accordance with the terms and my fiduciary duties.

[AGENT NAME]
Date: _, 20

11. STATUTORY NOTICES & AGENT CERTIFICATION

11.1 Notice to Principal

[// GUIDANCE: Insert the statutory “Important Information for the Principal” verbatim from N.C. Gen. Stat. § 32C-3-301(a).]

11.2 Agent’s Duties Summary

[// GUIDANCE: Insert the statutory “Important Information for Agent” in compliance with § 32C-3-301(b).]

11.3 Agent’s Certification (Optional but recommended)

The undersigned Agent certifies that to the best of Agent’s knowledge, the Principal is alive, this POA is valid and in full force, and Agent’s authority has not been terminated.

[AGENT NAME]
Date: _, 20

STATE OF NORTH CAROLINA
COUNTY OF ______

Sworn to and subscribed before me this ___ day of _, 20.

Notary Public
My Commission Expires: ____

[// GUIDANCE:
1. Retain originals in a secure location; provide certified copies to financial institutions as needed.
2. Consider recording if real estate transactions are contemplated.
3. Review estate plan for consistency with this POA.
4. Re-execute if Principal relocates or if controlling statutes materially change.]