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DRAFT

FOR DISCUSSION ONLY

UNIFORM
POWER OF ATTORNEY ACT*

___________________________________________________

NATIONAL CONFERENCE OF COMMISSIONERS

ON UNIFORM STATE LAWS

___________________________________________________

Interim Draft Dated January 19, 2005

With Prefatory Note

 Copyright © 2005
by
NATIONAL CONFERENCE OF COMMISSIONERS
ON UNIFORM STATE LAWS

_____________________________________________________________________________
*Name Change of act from Revised Uniform Durable Power of Attorney Act is subject to approval of the Executive
Committee of the National Conference of Commissioners on Uniform State Laws. The ideas, concepts and conclusions set
forth in this draft, including the proposed statutory language and any comments or reporter’s notes, have not been passed
upon by the National Conference of Commissioners on Uniform State Laws or the Drafting Committee. They do not
necessarily reflect the views of the Conference and its Commissioners or the Drafting Committee and its Members and
Reporter. Proposed statutory language may not be used to ascertain the intent or meaning of any promulgated final statutory
proposal.

DRAFTING COMMITTEE FOR THE

UNIFORM POWER OF ATTORNEY ACT
The Committee appointed by and representing the National Conference of Commissioners on
Uniform State Laws in preparing this Power of Attorney Act consists of the following
individuals:
JOHN P. BURTON, P.O. Box 1357, 315 Paseo de Peralta, Santa Fe, NM 87501, Chair
KENNETH W. ELLIOTT, 22nd Floor, City Place Building, 204 N. Robinson Ave., Oklahoma
City, OK 73102, Enactment Plan Coordinator
DAVID M. ENGLISH, University of Missouri-Columbia School of Law, Missouri Ave. &
Conley Ave., Columbia, MO 65211
THOMAS L. JONES, University of Alabama School of Law, University Station, P.O. Box
865557, Tuscaloosa, AL 35486-0050
NATHANIEL STERLING, Law Revision Commission, Suite D-1, 4000 Middlefield Rd., Palo
Alto, CA 94303
RICHARD V. WELLMAN, University of Georgia School of Law, Athens, GA 30602
STEVE WILBORN, 306 Tower Drive, Shelbyville, KY 40065
LINDA S. WHITTON, Valparaiso University School of Law, Wesemann Hall, 656 S.
Greenwich, Valparaiso, IN 46383, Reporter

EX OFFICIO
 
FRED H. MILLER, University of Oklahoma, College of Law, 300 Timberdell Rd., Room 3056,
Norman, OK 73019, President
MARTHA T. STARKEY, Suite 850, 30 S. Meridian St., Indianapolis, IN 46204, Division Chair

AMERICAN BAR ASSOCIATION ADVISORS

WILLIAM P. LAPIANA, New York Law School, 57 Worth St., New York, NY 10013, Advisor
ABIGAIL G. KAMPMANN, 153 Treeline, Suite 320, San Antonio, TX 78209-1880, Real
Property, Probate and Trust Law Section Advisor
CHARLES P. SABATINO, ABA Commission on Law and Aging, 740 15th St., Washington,
DC 20005, ABA Commission on Law and Aging Advisor

EXECUTIVE DIRECTOR
 
WILLIAM H. HENNING, University of Alabama School of Law, Box 870382, Tuscaloosa, AL
35487-0382, Executive Director

Copies of this Act may be obtained from:

NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS
211 E. Ontario Street, Suite 1300
Chicago, Illinois 60611
 312/915-0195
www.nccusl.org

UNIFORM POWER OF ATTORNEY ACT

TABLE OF CONTENTS
 
Prefatory Note

[ARTICLE] 1
GENERAL PROVISIONS AND DEFINITIONS
SECTION 101. SHORT TITLE
SECTION 102. SCOPE
SECTION 103. DEFINITIONS
SECTION 104. KNOWLEDGE; NOTICE
SECTION 105. POWER OF ATTORNEY NOT AFFECTED BY INCAPACITY OR LAPSE
OF TIME
SECTION 106. CREATION
SECTION 107. POWER OF ATTORNEY EXECUTED IN ANOTHER STATE OR
COUNTRY; PRE-EXISTING POWERS OF ATTORNEY; INTERPRETATION.
SECTION 108. AUTHORITY OF AGENT
SECTION 109. NOMINATION OF GUARDIAN; RELATION OF AGENT TO COURT-
APPOINTED FIDUCIARY
SECTION 110. WHEN EFFECTIVE
SECTION 111. TERMINATION
SECTION 112. CO-AGENTS AND SUCCESSOR AGENTS
SECTION 113. COMPENSATION AND REIMBURSEMENT OF AGENT
SECTION 114. AGENT’S DUTIES
SECTION 115. EXONERATION
SECTION 116. JUDICIAL REVIEW
SECTION 117. AGENT’S LIABILITY
SECTION 118. AGENT’S RESIGNATION; NOTICE
SECTION 119. PROTECTION OF PERSONS DEALING WITH AN AGENT
SECTION 120. LIABILITY FOR REFUSAL TO ACCEPT AGENT’S AUTHORITY
SECTION 121. PRINCIPLES OF LAW AND EQUITY

[ARTICLE] 2
POWERS
SECTION 201. INCORPORATION OF POWERS.
SECTION 202. CONSTRUCTION OF POWERS GENERALLY
SECTION 203. REAL PROPERTY
SECTION 204. TANGIBLE PERSONAL PROPERTY
SECTION 205. STOCKS AND BONDS
SECTION 206. COMMODITIES AND OPTIONS
SECTION 207. BANKS AND OTHER FINANCIAL INSTITUTIONS
SECTION 208. OPERATION OF BUSINESS
SECTION 209. INSURANCE AND ANNUITIES
SECTION 210. ESTATES, TRUSTS, AND OTHER BENEFICIARY RELATIONSHIPS
SECTION 211. CLAIMS AND LITIGATION
SECTION 212. PERSONAL AND FAMILY MAINTENANCE
SECTION 213. BENEFITS FROM GOVERNMENTAL PROGRAMS OR CIVIL OR
MILITARY SERVICE
SECTION 214. RETIREMENT PLANS
SECTION 215. TAXES
SECTION 216. GIFTS
SECTION 217. DELEGATION OF AGENCY AUTHORITY

[ARTICLE] 3
STATUTORY FORM POWER OF ATTORNEY
SECTION 301. OPTIONAL FORM
SECTION 302. AGENT CERTIFICATION

[ARTICLE] 4
MISCELLANEOUS PROVISIONS
SECTION 401. UNIFORMITY OF APPLICATION AND CONSTRUCTION
SECTION 402. ELECTRONIC SIGNATURES
SECTION 403. EFFECTIVE DATE
SECTION 404. EFFECT ON EXISTING POWERS OF ATTORNEY
SECTION 405. REPEAL

UNIFORM POWER OF ATTORNEY ACT

Prefatory Note

            The catalyst for the new Uniform Power of Attorney Act (“the Act”) was a national study
in 2002 which revealed growing divergence in state power of attorney legislation. The original
Uniform Durable Power of Attorney Act (“Original Act”), last amended in 1987, was at one time
followed by all but a few jurisdictions. Despite initial uniformity, the study found that a majority
of states had enacted non-uniform provisions to deal with specific matters upon which the
Original Act is silent. The topics about which there was increasing divergence included: 1) the
authority of multiple agents; 2) the authority of a later-appointed fiduciary or guardian; 3) the
impact of dissolution or annulment of the principal’s marriage to the agent; 4) activation of
contingent powers; 5) the authority to make gifts; and 6) standards for agent conduct and
liability. Other topics about which states had legislated, although not necessarily in a divergent
manner, included: successor agents, execution requirements, portability, sanctions for dishonor
of a power of attorney, and restrictions on powers that have the potential to dissipate a
principal’s property or alter a principal’s estate plan.

            To ascertain whether there was actual divergence of opinion about default rules for
powers of attorney or only the lack of a detailed uniform model, the Conference conducted a
national survey. The survey was distributed to probate and elder law sections of all state bar
associations, to the fellows of the American College of Trust and Estate Counsel, the leadership
of the ABA Section of Real Property, Probate and Trust Law and the National Academy of Elder
Law Attorneys, as well as to special interest listserves of the ABA Commission on Law and
Aging. Forty-four jurisdictions were represented in the 371 surveys returned.
   
            The survey responses demonstrated a consensus of opinion in excess of seventy percent
that a power of attorney statute should:

            (1)    provide for a confirming affidavit to activate contingent powers;

            (2)    revoke a spouse-agent’s authority upon the dissolution or annulment of the marriage
                     to the principal;
            (3)    include a portability provision;
            (4)    require gift making authority to be expressly stated in the grant of authority;
            (5)    provide a default standard for fiduciary duties;
            (6)    permit the principal to alter the default fiduciary standard;
            (7)    require notice by an agent when the agent is no longer willing or able to act;
            (8)    include safeguards against abuse by the agent;
            (9)    include remedies and sanctions for abuse by the agent;
            (10)  protect the reliance of other persons on a power of attorney; and
            (11)  include remedies and sanctions for refusal of other persons to honor power of
                     attorney.

            Informed by the study and survey results, the Conference drafted the Act to reflect both
state legislative trends and collective best practices. While the Act is primarily a set of default
rules that can be altered by specific provisions within a power of attorney, the Act also contains
certain safeguards for the protection of an incapacitated principal. The Act was drafted to strike a
balance between the need for flexibility and acceptance of an agent’s authority and the need to
prevent and redress abuse.

            Among the provisions that enhance flexibility are the statutory definitions of powers in
Article 2 which can be incorporated by reference in an individually drafted power of attorney or
selected for inclusion on the optional statutory form provided in Article 3. The statutory
definitions of enumerated powers are an updated version of those in the Uniform Statutory Form
Power of Attorney Act (1988), which the Act repeals. The Conference study found that
seventeen jurisdictions had adopted some type of statutory form power of attorney. The decision
to include a statutory form power of attorney in the Act was based on this trend and the
proliferation of power of attorney forms currently available to the public.
            Sections 119 and 120 of the Act address the problem of persons refusing to honor an
agent’s authority. Section 119 provides protection from liability for persons who in good faith
accept the agent’s authority. This section also prohibits such persons from requiring a different
form of power of attorney. Section 120 sanctions refusal to accept an agent’s authority unless the
refusal meets limited statutory exceptions.

            In exchange for mandated acceptance of an agent’s authority, the Act does not place upon
persons who deal with an agent the duty to investigate the agent or the agent’s actions.
Safeguards against abuse are provided, instead, through heightened requirements for delegating
authority that could dissipate the principal’s property or alter the principal’s estate plan (Section
108), provisions that set out the agent’s duties and liabilities (Sections 114 and 117) and by
specification of comprehensive categories of persons who have standing to request judicial
review of the agent’s conduct (Section 116). A provision that gives the reviewing court
discretion to award attorney fees to the prevailing party (Section 116(b)) serves to both deter
frivolous actions and facilitate redress where warranted.

Overview of the Uniform Power of Attorney Act

            The Act consists of 4 articles. The basic substance of the Act is located in Articles 1 and
2. Article 3 contains the optional statutory form and Article 4 consists of miscellaneous
provisions dealing with general application of the Act and repeal of certain prior acts. The
following is a brief overview.

            Article 1 – General Provisions and Definitions – Section 102 provides that the Act is to
apply broadly to all powers of attorney, but excepts from the Act powers of attorney for health
care and certain specialized powers such as those coupled with an interest or dealing with proxy
voting. Section 103 lists definitions which are useful in interpretation of the Act. Of particular
note is the definition of “incapacity” which replaces the term “disability” used in the Original
Act. The definition of “incapacity” is taken from the Uniform Guardianship and Protective
Proceedings Act as amended in 1997. Another significant change in terminology from the
Original Act is the use of “agent” in place of the term “attorney in fact”. The term “agent” was
also used in the Uniform Statutory Form Power of Attorney Act and is intended to clarify
confusion in the lay public about the meaning of “attorney in fact.”

            Another innovation is the presumption of durability contained in Section 105. This

change reflects the view that most principals prefer their powers of attorney to be durable rather
than non-durable. No longer must a durable power of attorney include language indicating that
the authority conferred is exercisable notwithstanding the principal’s subsequent disability or
incapacity. A power of attorney executed under the Act is durable unless it contains express
language indicating otherwise. While the Original Act was silent on execution requirements for a
power of attorney, Section 106 requires the principal’s signature and provides that an
acknowledged signature is presumed genuine. Section 107 enumerates those powers executed in
another state or country or under pre-existing law that will be considered valid under the Act.

            Article 1 also addresses concerns about powers that have the potential of dissipating the
principal’s property or altering the principal’s estate plan. Section 108(b) lists the powers that
cannot be implied from a general grant of authority, but which must instead be delegated through
express inclusion in the power of attorney. Of particular note is Section 108(b)(6) which requires
an express grant of authority to empower the agent to create with the principal’s property a gift,
survivorship right, or beneficiary designation in the agent or in a person customarily supported
by the agent.

            Section 109 provides guidance on the relationship of the agent to a later court-appointed
fiduciary. The Original Act conferred upon a later-appointed fiduciary the same power to revoke
or amend the power of attorney as the principal would have had prior to incapacity. In contrast,
the Act reserves this power to the court and states that the agent’s authority continues until
limited, suspended, or terminated by the court. This approach reflects greater deference for the
previously expressed preferences of the principal and is consistent with the Uniform
Guardianship and Protective Proceedings Act.

            The default rule for when a power of attorney becomes effective is stated in Section 110.
Unless the principal specifies that it is to become effective upon a future date, event, or
contingency, a power of attorney becomes effective when executed. The principal is permitted
under this section to designate who may determine when contingent powers are triggered. The
determination of a person designated by the principal may be considered conclusive by those
relying on the power of attorney. If the trigger for contingent powers is the principal’s
incapacity, Section 110 provides that the person designated to make that determination has the
authority to act as the principal’s personal representative under the Health Insurance Portability
and Accountability Act for purposes of accessing the principal’s health care information and
communicating with the principal’s health care provider. This provision does not, however,
confer upon an agent the authority to make health care decisions for the principal. If the trigger
for contingent powers is incapacity but the principal has not designated anyone to make the
determination, the statute provides for determination by a physician or licensed psychologist as a
default position.

            The bases for termination of a power of attorney are covered in Section 111. In response
to concerns expressed in the Conference survey, the Act provides as the default rule that
authority granted to a principal’s spouse is revoked upon the commencement of proceedings for
legal separation, marital dissolution or annulment.
 
            Sections 112 through 118 deal with matters related to the agent, including default rules
for compensation, reimbursement, agent duties and liability. Section 115 provides that a
principal may lower the standard of liability for agent conduct subject to a minimum level of
accountability for actions taken in bad faith or with reckless indifference to the purposes of the
power of attorney. Section 116 sets out a comprehensive list of persons who may petition the
court to review the agent’s conduct. An agent may resign by following the notice procedures
described in Section 118.
 
            Sections 119 and 120 are included in the Act to address the frequently reported problem
of persons who refuse to accept an agent’s authority. Section 119 protects persons who accept an
agent’s authority without knowledge that a power of attorney is revoked, terminated, or invalid
or that the agent is exceeding or improperly exercising the agent’s powers. A person who accepts
an agent’s authority in good faith is not required to make inquiry into the extent of the agent’s
powers or the propriety of their exercise, and may rely on an agent’s certification as to any
matter concerning the power of attorney or the principal. In exchange for this protection, Section
120(a) imposes liability for refusal to accept an agent’s authority subject to limited exceptions in
Section 120(b).
 
            Section 121 clarifies that the Act is supplemented by existing bodies of law, including the
common law and equity. While the principles of common law and equity may supplement the
provisions of the Act, the Uniform Power of Attorney Act preempts principles of common law
and equity that are inconsistent with either its provisions or its purposes and policies.

            Article 2 – Powers – The Act offers the drafting attorney enhanced flexibility whether
drafting an individually tailored power of attorney or using the statutory form. Like the Uniform
Statutory Form Power of Attorney Act, Article 2 of the Act sets forth detailed descriptions of
powers that can be conveyed to an agent. Section 201 provides that these powers can be
incorporated by reference using the short descriptive captions or section numbers in Article 2.
These definitions also provide the meaning for the powers enumerated on the optional statutory
form in Article 3. Section 201 further states that these powers may be modified in the power of
attorney.

            Article 3 – Statutory Form Power of Attorney – The optional form in Article 3 is

designed for use by lawyers as well as lay persons. It contains, in plain language, instructions to
the principal and agent. Step-by-step prompts are given for designation of the agent, successor
agent(s), and the grant of powers. In the grant of powers section, the principal must decide to
cross out any of the general powers listed on the form that the principal does not wish to delegate
to the agent. There is a separate list of the Section 108(b) powers for which the statute requires
an express grant of authority. If the principal wishes to grant any of the Section 108(b) powers,
the principal must initial each power to be granted.

            Article 4 – Miscellaneous Provisions – The miscellaneous provisions in Article 4 clarify

that the Act is intended to have the widest possible effect within constitutional limitations. The
Act repeals the Uniform Durable Power of Attorney Act, The Uniform Statutory Form Power of
Attorney Act, and Article 5, Part 5 of the Uniform Probate Code.

UNIFORM POWER OF ATTORNEY ACT

[ARTICLE] 1

GENERAL PROVISIONS AND DEFINITIONS

 
            SECTION 101. SHORT TITLE. This [act] may be cited as the Uniform Power of

Attorney Act.

            SECTION 102. SCOPE. This [act] applies to all powers of attorney except:

                        (1) a power given to another person to make health care decisions;

                        (2) a power of attorney to the extent that it is coupled with an interest in the

subject of the power;

                        (3) a proxy given to another person to exercise voting rights;

                        (4) a power given to or for the benefit of a creditor in connection with a credit

transaction;

                        (5) a power contained in the governing document of a corporation, partnership,

limited liability company, association or other legal entity by which a director, partner or

member authorizes others to act on behalf of the entity; and.

                        (6) a power of attorney created on a form prescribed by a government or

governmental subdivision, agency or other instrumentality for a governmental purpose.

            SECTION 103. DEFINITIONS. In this [act]:

                        (1) “Agent” means the person granted authority to act as an attorney in fact for the

principal under a power of attorney and includes the original agent and any co-agent or successor

agent.

                        (2) “Court” means the [ ] court.

                        (3) “ Incapacity” means inability of an individual to manage property or business

affairs because of an impairment in the ability to receive and evaluate information or make or
communicate decisions even with the use of technological assistance, or because the individual is

missing, detained, or unable to return to the United States. “Incapacitated” has a corresponding

meaning.

                        (4) “Person” means an individual, corporation, business trust, estate, trust,

partnership, limited liability company, association, joint venture, public corporation,

government, governmental subdivision, agency or instrumentality, or any other legal or

commercial entity.

                        (5) “Power of attorney” means an instrument in which a principal grants authority

to an agent.

                        (6) “Principal” means an individual who grants authority to an agent in a power of

attorney.

                        (7) “Property” means anything that may be the subject of ownership, whether real

or personal, legal or equitable, or any interest therein.

                        (8) “Record” means information that is inscribed on a tangible medium or that is

stored in an electronic or other medium and is retrievable in perceivable form.

                        (9) “Sign” means with present intent to authenticate or adopt a record:

                                    (i) to execute or adopt a tangible symbol; or

                                    (ii) to attach to or logically associate with the record an electronic sound,

symbol, or process.

                        (10) “State” means a state of the United States, the District of Columbia, Puerto

Rico, United States Virgin Islands, or any territory or insular possession subject to the
jurisdiction of the United States. The term includes a Native American nation, tribe, pueblo or

band recognized by federal law or formally acknowledged by a State.

            SECTION 104. KNOWLEDGE; NOTICE.

                        (a) Subject to subsection (b), a person has knowledge of a fact involving a power

of attorney if the person:

                                    (1) has actual knowledge of it;

                                    (2) has received a notice or notification of it; or

                                    (3) from all the facts and circumstances known to the person at the time in

question, has reason to know it.

                        (b) An organization has notice or knowledge of a fact involving a power of

attorney from the time it is brought to the attention of the individual conducting a transaction

involving the power of attorney and, in any event, from the time it would have been brought to

the individual’s attention if the organization had exercised reasonable diligence. An organization

exercises reasonable diligence if it maintains reasonable routines for communicating significant

information to the individual conducting the transaction and the organization reasonably

complies with the routines. Reasonable diligence does not require an individual acting for the

organization to communicate information unless the communication is part of the individual’s

duties or the individual has reason to know of the transaction and that the transaction would be

materially affected by the information. If an organization conducts activities through branch or

multiple offices, notice to a branch or office other than the office where the power of attorney is
presented is attributable to the individual conducting the transaction not later than three business

days from the date of notice to the branch or other office.

            SECTION 105. POWER OF ATTORNEY NOT AFFECTED BY INCAPACITY

OR LAPSE OF TIME.

                        (a) A power of attorney is durable unless the power of attorney expressly provides

that it is terminated by the incapacity of the principal. Durable, with reference to a power of

attorney, means that the agent’s authority survives the principal’s incapacity or takes effect upon

the principal’s incapacity.

                        (b) All acts performed by an agent pursuant to a power of attorney have the same

effect and inure to the benefit of and bind the principal and the principal’s successors in interest

as if the principal had performed the acts. Unless the power of attorney provides a time of

termination, the authority of an agent is exercisable notwithstanding a lapse of time since the

execution of the power of attorney.

            SECTION 106. CREATION. The principal must sign a power of attorney or direct

another individual to sign on behalf of the principal in the principal’s presence. If the principal

acknowledges the signature before a notary public or another person authorized to take

acknowledgments, the signature is presumed genuine.

            SECTION 107. POWER OF ATTORNEY EXECUTED IN ANOTHER STATE OR

COUNTRY; PRE-EXISTING POWERS OF ATTORNEY; INTERPRETATION.

                        (a) A power of attorney executed in another state or country is valid and

enforceable in this state if its creation complies with:

                                    (1) the law of the state or country in which the power of attorney was

executed;

                                    (2) the law of this state;

                                    (3) the law of the state or country where the principal is domiciled, has a

place of abode or business, or is a national; or

                                    (4) the law of the state or country where the agent is domiciled or has a

place of business.

                        (b) A power of attorney executed in this state before [the effective date of this act]

is valid and enforceable in this state if its creation complies with the law of this state as it existed

at the time of execution.

                        (c) This [act] may not be applied to enlarge the scope of authority granted to an

agent in a power of attorney executed in another state or country or under pre-existing law.

            SECTION 108. AUTHORITY OF AGENT.

                        (a) Subject to subsection (b), if a principal grants to an agent general authority

that is not limited to one or more express acts, subjects, or purposes for which general authority

is granted, the agent has all the authority to act that the principal would have if the principal had

capacity to contract, other than an act for which the personal action of the principal is required.

Examples of acts for which the personal action of the principal is required include entering into

marriage, exercising governmental voting privileges, and making a last will and testament.
                        (b) An agent has authority under a power of attorney to do the following on behalf

of the principal or with the principal’s property only if the power of attorney expressly grants the

authority to:

                                    (1) create, modify, or revoke a trust;

                                    (2) fund a trust not created by the principal;

                                    (3) make a gift;

                                    (4) create or change rights of survivorship;

                                    (5) designate or change the designation of a beneficiary;

                                    (6) create in the agent or a person customarily supported by the agent an

interest in the principal’s property through gift, survivorship right or beneficiary designation; [or]

                                    (7) delegate to another person the agency authority granted under the

power of attorney[.] [; or

                                    (8) disclaim property, including a power of appointment.]

[Authority to make a gift is further subject to Section 216 unless otherwise modified by the terms

of the power of attorney.]

                        (c) With the exception of powers granted pursuant to subsection (b), if powers

granted in a power of attorney are similar or overlap, the broadest power controls.

                        (d) If a principal grants inconsistent authority to one or more agents in two or

more powers of attorney, the authority granted last controls to the extent of the inconsistency.

                        (e) Powers granted in a power of attorney are exercisable with respect to property

the principal has when the power of attorney is executed or an interest acquired after execution,
whether or not the property is located in this State, and whether or not the powers are exercised

or the power of attorney is executed in this State.

            SECTION 109. NOMINATION OF GUARDIAN; RELATION OF AGENT TO

COURT-APPOINTED FIDUCIARY.

                        (a) In a power of attorney, a principal may nominate a conservator, guardian of

the principal’s estate, or guardian of the principal’s person for consideration by the court if

protective proceedings for the principal’s estate or person are thereafter commenced. [The court

shall make its appointment in accordance with the principal's most recent nomination in a power

of attorney except for good cause or disqualification.]

                        (b) If, after the execution of a power of attorney, a court appoints a conservator or

guardian of the principal’s estate, or other fiduciary charged with the management of all of the

principal's property or all of the property except specified exclusions, the agent is accountable to

the fiduciary as well as to the principal. [The agent’s authority continues until limited,

suspended, or terminated by the court.]

            SECTION 110. WHEN EFFECTIVE.

                        (a) An agent’s authority under a power of attorney becomes effective when

executed unless the principal specifies that it is to become effective at a future date, or upon the

occurrence of a future event or contingency.

                        (b) If a power of attorney becomes effective upon the occurrence of a future event

or contingency, the principal may designate one or more persons who have authority to

determine conclusively in a writing or other record that the event or contingency has occurred.
Other persons may rely on the determination of a person so designated by the principal without

liability to the principal or to any other person, whether or not the event or contingency has

actually occurred.

                        (c) If a power of attorney becomes effective upon the principal’s incapacity and

the principal has not designated a person to have authority to determine that the principal is

incapacitated, the power of attorney becomes effective upon a determination in a writing or other

record by a physician [or licensed psychologist] that the principal is incapacitated. Other persons

may rely on the determination of the physician [or licensed psychologist] without liability to the

principal or to any other person.

                        (d) A person designated by the principal to make a determination of the

principal’s incapacity may act as the principal’s personal representative pursuant to sections

1171 through 1179 of the Social Security Act, 42 U.S.C. Section 1320d (sections 262 and 264 of

Public Law 104-191) [or successor provisions] and applicable regulations, to access the

principal’s health care information and communicate with the principal’s health care provider or

physician.

            SECTION 111. TERMINATION.

                        (a) Subject to subsections (b), (c) and (d), a power of attorney is terminated when:

                                    (1) the principal dies;

                                    (2) the principal becomes incapacitated, if the power of attorney is not

durable;
                                    (3) the principal revokes the power of attorney or terminates the agent’s

authority;

                                    (4) the agent dies or is adjudged incapacitated;

                                    (5) the agent resigns pursuant to the provisions of Section 118;

                                    (6) proceedings are commenced for the [legal separation or divorce of the

principal and agent] [dissolution or annulment of the agent’s marriage to the principal];

                                    (7) the power of attorney states that it is terminated; or

                                    (8) the purpose of the power of attorney is accomplished.

                        (b) A power of attorney is not terminated by the termination of an agent’s

authority or the agent’s death or resignation if the power of attorney provides for a co-agent or

successor agent.

                        (c) Termination of the agent’s authority, revocation of the power of attorney by

the principal or the death of the principal does not terminate the agency as to the agent or other

person that, without knowledge of the termination of the agent’s authority, revocation of the

power of attorney or the death of the principal, acts in good faith under the power. An act so

performed, unless otherwise invalid or unenforceable, binds the principal and the successors in

interest of the principal.

                        (d) The incapacity of a principal who has previously executed a power of attorney

that is not a durable power does not revoke or terminate the agency as to the agent or other

person that, without knowledge of the incapacity, acts in good faith under the power. An act so
performed, unless otherwise invalid or unenforceable, binds the principal and the successors in

interest of the principal.

            SECTION 112. CO-AGENTS AND SUCCESSOR AGENTS.

                        (a) Unless the power of attorney or this section otherwise provides, authority

granted to two or more co-agents is exercisable only by their majority consent. However, if

prompt action is required to accomplish the purposes of the power of attorney or to avoid

irreparable injury to the principal’s interests and an agent is unavailable because of absence,

illness, or other temporary incapacity, the other agents may act for the principal. If a vacancy

occurs in one or more of the designations of agent under a power of attorney, the remaining

agents may act for the principal.

                        (b) A principal may designate one or more successor agents to act if an initial or

predecessor agent resigns, dies, becomes incapacitated, is not qualified to serve, or declines to

serve. A principal may grant authority to another person, designated by name, by office, or by

function, including an initial or successor agent, to designate one or more successor agents.

Unless a power of attorney otherwise provides, a successor agent has the same authority as that

granted to an initial agent.

                        (c) An agent is not liable for the actions of another agent, including a predecessor

agent, unless the agent participates in or conceals a breach of fiduciary duty committed by the

other agent. An agent who has knowledge of a breach or imminent breach of fiduciary duty by

another agent must notify the principal, and, if the principal is incapacitated, take whatever
actions may be reasonably appropriate in the circumstances to safeguard the principal’s best

interests.

            SECTION 113. COMPENSATION AND REIMBURSEMENT OF AGENT. If a

power of attorney does not specify an agent’s compensation, the agent is entitled to

compensation that is reasonable under the circumstances. Except as otherwise provided in a

power of attorney, an agent is entitled to reimbursement of reasonable expenses advanced by the

agent on behalf of the principal.

            SECTION 114. AGENT’S DUTIES.

                        (a) An agent’s acceptance of authority under a power of attorney creates an

agency relationship. An agent accepts authority under a power of attorney by exercising powers

or performing duties as an agent or by any other assertion or conduct indicating acceptance.

                        (b) Except as otherwise provided in the power of attorney, an agent must:

                                    (1) act loyally for the principal’s benefit in accordance with the reasonable

expectations of the principal known to the agent, and, otherwise, with the care, competence and

diligence normally exercised by agents in similar circumstances for the best interest of a

principal;

                                    (2) avoid creating a conflict of interest that would impair the agent’s

ability to act impartially in the best interest of the principal;

                                    (3) keep a complete record of all receipts, disbursements, and transactions

conducted on behalf of the principal;

                                    (4) perform no act beyond the authority granted by the principal;

                                    (5) cooperate with a person that has authority to make health care

decisions for the principal in accordance with the principal’s expectations, if known to the agent,

and, otherwise, in accordance with what is reasonably believed by the agent to be in the best

interest of the principal; and

                                    (6) take the principal’s estate plan into account to the extent known to the

agent and attempt to preserve the plan if consistent with the principal’s best interest based on all

relevant factors, including the principal’s foreseeable obligations and need for maintenance;

minimization of income, estate, inheritance, generation-skipping transfer or gift taxes; and

eligibility for public benefits or assistance under a statute or governmental regulation. An agent

is not liable to any beneficiary of the plan for failure to preserve the principal’s estate plan unless

the agent acts in bad faith.

                        (c) An agent who acts in good faith, with care, competence, and diligence for the

best interest of the principal is not liable solely because the agent also benefits from the act or

has an individual or conflicting interest in relation to the property or affairs of the principal.

                        (d) When an agent has skills or knowledge that exceed those possessed by most

others, the agent’s skills or knowledge are circumstances to be considered in determining

whether the agent has acted with due care, competence and diligence.

                        (e) Absent a breach of duty to the principal, an agent is not liable if the value of

the principal’s property declines.

                        (f) An agent that employs another person on behalf of the principal is not liable

for an error of judgment, act or default of that person provided the agent exercises due care,

competence, and diligence in selecting and monitoring the person.

                        (g) If an agent is granted delegating authority under Section 108 (7) to delegate to

another person the agency authority granted by the principal, the agent remains responsible to the

principal for the exercise or nonexercise of the delegated authority.

                        (h) Except as otherwise provided in the power of attorney, an agent is not required

to disclose receipts, disbursements, or transactions conducted on behalf of the principal unless

requested by the principal, a guardian, conservator, or other fiduciary appointed for the principal,

any governmental agency having authority to protect the welfare of the principal, or, upon the

death of the principal, by the personal representative or successor in interest of the principal’s

estate, or ordered by a court. If so requested, the agent shall comply within 30 days or provide a

writing or other record substantiating why additional time is needed, and in such event, shall

comply within an additional 30 days.

            SECTION 115. EXONERATION. A provision in a power of attorney relieving the

agent of liability for breach of duty is binding on the principal and the principal’s successors in

interest except to the extent that the provision:

                        (1) relieves the agent of liability for breach of duty committed in bad faith or with

reckless indifference to the purposes of the power of attorney or the interests of the principal; or

                        (2) was inserted as a result of an abuse by the agent of a confidential or fiduciary

relationship with the principal.

            SECTION 116. JUDICIAL REVIEW.

                        (a) The court may construe a power of attorney, review the agent’s conduct, and

grant appropriate relief. Persons who may petition the court include:

                                    (1) the principal or the agent;

                                    (2) a conservator, guardian of the estate, or other fiduciary charged with

management of the principal’s property;

                                    (3) the principal’s spouse, parent, or descendant;

                                    (4) a person who would qualify as an intestate successor of the

principal;                                    (5) a person named as a beneficiary to receive any property,

benefit, or contractual right on the principal’s death, or as a beneficiary of a trust created by or

for the principal;

                                    (6) a governmental agency having regulatory authority to protect the

welfare of the principal; and

                                    (7) the principal’s caregiver or any other person who demonstrates

sufficient interest in the principal’s welfare.

                        (b) The court may award reasonable attorneys’ fees and expenses to the prevailing

party.

            SECTION 117. AGENT’S LIABILITY. An agent that violates this [act] is liable to the

principal or the principal’s successors in interest for (i) the damages and (ii) attorneys’ fees and

expenses paid from the principal’s estate, resulting from the violation and for any amounts

awarded under Section 116(b).

            SECTION 118. AGENT’S RESIGNATION; NOTICE. An agent may resign by giving

notice to the principal and, if the principal is incapacitated, to:

                        (1) the conservator or guardian, if one has been appointed for the principal, and a

co-agent or successor agent, if any; or

                        (2) the principal’s caregiver or other person reasonably believed by the agent to

have sufficient interest in the principal’s welfare, if the principal has neither a conservator nor a

guardian, and has not named a co-agent or successor agent; or

                        (3) a governmental agency having authority to protect the welfare of the principal,

if the principal has neither a conservator nor a guardian, has not named a co-agent or successor

agent, and has no caregiver or other person with sufficient interest in the principal’s welfare..

            SECTION 119. PROTECTION OF PERSONS DEALING WITH AN AGENT.

                        (a) A person that in good faith accepts an agent’s authority, without knowledge

that an agent’s authority has been terminated, that a power of attorney has been terminated or is

invalid or that the agent is exceeding or improperly exercising the agent’s powers, is protected

from liability as if the power of attorney were still in effect and valid and the agent had properly

exercised the power.

                        (b) A person that in good faith accepts an agent’s authority is not required to

inquire into the extent of the agent’s powers or the propriety of their exercise, but may require

and rely upon, without further investigation, an agent’s certification as to any matters concerning

the power of attorney or the principal.

                        (c) A person with which an agent seeks to act may not require an additional or

different form of power of attorney for authority granted in the power of attorney presented.

                        (d) A photocopy or electronically transmitted copy of an original power of

attorney is as valid as the original.

            SECTION 120. LIABILITY FOR REFUSAL TO ACCEPT AGENT’S

AUTHORITY.

                        (a) Except as otherwise provided in subsection (b), a person that refuses to accept

the authority of an agent within 5 business days of presentment of a power of attorney is liable to

the principal or the principal’s successors in interest to the same extent as the person would be

liable had the person refused to accept the authority of a principal who has capacity to act on the

principal’s own behalf. The amount recoverable for refusal to accept an agent’s authority is the

total of the damages from the refusal or $1000, whichever is greater, plus costs and reasonable

attorneys’ fees.

                        (b) A person that refuses to accept the authority of an agent to exercise a power

granted under a power of attorney is not liable under subsection (a) if:

                                    (1) the person has knowledge of the termination of the agent’s authority or

termination of the power of attorney before the exercise of the power;

                                    (2) the person reasonably believes that the power of attorney is not valid

under the law of this state or that the agent does not have authority to perform the act requested

and provides the agent with a writing or other record not more than 5 business days after the
refusal which describes the reason that the power of attorney is not valid or that the agent lacks

authority; or

                                    (3) the person has made a good faith report to the [local adult protective

services unit] alleging physical or financial abuse, neglect, exploitation or abandonment of the

principal by the agent or has knowledge that such a report was made by another person.

                        (c) This section does not abrogate any other cause of action or remedy to which

the principal or agent is entitled under another statute, common law, or in equity.

            SECTION 121. PRINCIPLES OF LAW AND EQUITY. Unless displaced by the

particular provisions of this [act], the principles of law and equity, including the law relative to

capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion,

mistake, ratification, bankruptcy and other validating or invalidating cause, supplement its

provisions.

[ARTICLE] 2

POWERS

            SECTION 201. INCORPORATION OF POWERS.

                        (a) An agent has a power described in this [Article] if the power of attorney

incorporates the power by:

                                    (1) referring to a descriptive caption in Sections 203 through 217; or

                                    (2) citing to a specific section of Sections 203 through 217.

                        (b) A reference in a power of attorney to a descriptive caption in Sections 203

through 217 or a citation to a specific section of Sections 203 through 217 incorporates the entire

section as if it were set out in full in the power of attorney.

                        (c) The principal may modify a power incorporated by reference.

                        (d) All powers in this [Article] are subject to the provisions of Section 108.

            SECTION 202. CONSTRUCTION OF POWERS GENERALLY. By executing a

power of attorney that incorporates by reference a power described in Sections 203 through 217,

except as provided in Section 108 or modified in the power of attorney, the principal authorizes

the agent with respect to that subject to:

                        (1) demand, receive, and obtain by litigation or otherwise, money or other thing of

value to which the principal is, may become, or claims to be entitled, and conserve, invest,

disburse, or use anything so received for the purposes intended;

                        (2) contract in any manner with any person, on terms agreeable to the agent, to

accomplish a purpose of a transaction, and perform, rescind, reform, release, or modify the

contract or another contract made by or on behalf of the principal;

                        (3) execute, acknowledge, seal, and deliver a deed, revocation, mortgage, security

agreement, lease, notice, check, promissory note, electronic funds transfer, release, or other

instrument or communication the agent considers desirable to accomplish a purpose of a

transaction, including creating a schedule of the principal’s property and attaching it to the power

of attorney;
                        (4) prosecute, defend, submit to arbitration or mediation, settle, and propose or

accept a compromise with respect to, a claim existing in favor of or against the principal or

intervene in litigation relating to the claim;

                        (5) seek on the principal’s behalf the assistance of a court to carry out an act

authorized by the principal in the power of attorney;

                        (6) engage, compensate, and discharge an attorney, accountant, expert witness, or

other assistant;

                        (7) keep appropriate records of each transaction, including an accounting of

receipts and disbursements;

                        (8) prepare, execute, and file a record, report, or other document the agent

considers desirable to safeguard or promote the principal’s interest under a statute or

governmental regulation;

                        (9) reimburse the agent for expenditures properly made by the agent in exercising

the powers granted by the power of attorney; and

                        (10) in general, do any other lawful act with respect to the power and all property

related to the power.

            SECTION 203. REAL PROPERTY. Language granting power with respect to real

property authorizes the agent to:

                        (1) accept as a gift or as security for an extension of credit, reject, demand, buy,

lease, receive, or otherwise acquire, an interest in real property or a right incident to real

property;
                        (2) sell, exchange, convey with or without covenants, quitclaim, release,

surrender, mortgage, retain title for security, encumber, partition, consent to partitioning,

subdivide, apply for zoning, rezoning, or other governmental permits, plat or consent to platting,

develop, grant options concerning, lease, sublease, or otherwise dispose of, an interest in real

property or a right incident to real property;

                        (3) release, assign, satisfy, or enforce by litigation or otherwise, a mortgage, deed

of trust, conditional sale contract, encumbrance, lien, or other claim to real property which exists

or is asserted;

                        (4) manage or conserve an interest in real property or a right incident to real

property, owned or claimed to be owned by the principal, including:

                                    (A) insuring against a casualty, liability, or loss;

                                    (B) obtaining or regaining possession, or protecting the interest or right,

by litigation or otherwise;

                                    (C) paying, compromising, or contesting taxes or assessments, or applying

for and receiving refunds in connection with them; and

                                    (D) purchasing supplies, hiring assistance or labor, and making repairs or

alterations to the real property;

                        (5) use, develop, alter, replace, remove, erect, or install structures or other

improvements upon real property in or incident to which the principal has, or claims to have, an

interest or right;
                        (6) participate in a reorganization with respect to real property or a legal entity

that owns an interest in or right incident to real property and receive and hold, directly or

indirectly, shares of stock or obligations, or other evidences of ownership or debt, received in a

plan of reorganization, and act with respect to them, including:

                                    (A) selling or otherwise disposing of them;

                                    (B) exercising or selling an option, conversion, or similar right with

respect to them; and

                                    (C) voting them in person or by proxy;

                        (7) change the form of title of an interest in or right incident to real property,

except as otherwise provided in Section 108(b); and

                        (8) dedicate to public use, with or without consideration, easements or other real

property in which the principal has, or claims to have, an interest.

            SECTION 204. TANGIBLE PERSONAL PROPERTY. Language granting power

with respect to tangible personal property authorizes the agent to:

                        (1) accept as a gift or as security for an extension of credit, reject, demand, buy,

receive, or otherwise acquire ownership or possession of tangible personal property or an interest

in tangible personal property;

                        (2) sell, exchange, convey with or without covenants, release, surrender, create a

security interest in, grant options concerning, lease, sublease to others, or otherwise dispose of

tangible personal property or an interest in tangible personal property;

                        (3) release, assign, satisfy, or enforce by litigation or otherwise, a security

interest, lien, or other claim on behalf of the principal, with respect to tangible personal property

or an interest in tangible personal property;

                        (4) manage or conserve tangible personal property or an interest in tangible

personal property on behalf of the principal, including:

                                    (A) insuring against casualty, liability, or loss;

                                    (B) obtaining or regaining possession, or protecting the property or

interest, by litigation or otherwise;

                                    (C) paying, compromising, or contesting taxes or assessments or applying

for and receiving refunds in connection with taxes or assessments;

                                    (D) moving from place to place;

                                    (E) storing for hire or on a gratuitous bailment; and

                                    (F) using, altering, and making repairs or alterations; and

                        (5) change the form of title of an interest in tangible personal property, except as

otherwise provided in Section 108(b).

            SECTION 205. STOCKS AND BONDS. Language granting power with respect to

transactions concerning stocks and bonds authorizes the agent to buy, sell, and exchange stocks,

bonds, mutual funds, and all other types of securities and financial instruments, whether held

directly or indirectly, except commodity futures contracts and call and put options on stocks and

stock indexes, receive certificates and other evidences of ownership with respect to securities,
exercise voting rights with respect to securities in person or by proxy, enter into voting trusts,

and consent to limitations on the right to vote.

            SECTION 206. COMMODITIES AND OPTIONS. Language granting power with

respect to transactions concerning commodities and options authorizes the agent to buy, sell,

exchange, assign, settle, and exercise commodity futures contracts and call and put options on

stocks and stock indexes traded on a regulated option exchange, and establish, continue, modify,

and terminate option accounts with a broker.

            SECTION 207. BANKS AND OTHER FINANCIAL INSTITUTIONS. Except as

otherwise provided in Section 108(b), language granting power with respect to transactions

concerning banks and other financial institutions authorizes the agent to:

                        (1) continue, modify, and terminate an account or other banking arrangement

made by or on behalf of the principal;

                        (2) establish, modify, and terminate an account or other banking arrangement with

a bank, trust company, savings and loan association, credit union, thrift company, brokerage

firm, or other financial institution selected by the agent;

                        (3) rent a safe deposit box or space in a vault;

                        (4) contract for other services available from a financial institution as the agent

considers desirable;

                        (5) withdraw by check, order, or otherwise money or property of the principal

deposited with or left in the custody of a financial institution;

                        (6) receive bank statements, vouchers, notices, and similar documents from a

financial institution and act with respect to them;

                        (7) enter a safe deposit box or vault and withdraw or add to the contents;

                        (8) borrow money at an interest rate agreeable to the agent and pledge as security

personal property of the principal necessary in order to borrow, pay, renew, or extend the time of

payment of a debt of the principal;

                        (9) make, assign, draw, endorse, discount, guarantee, and negotiate promissory

notes, checks, drafts, and other negotiable or nonnegotiable paper of the principal, or payable to

the principal or the principal’s order, transfer money, receive the cash or other proceeds of those

transactions, accept a draft drawn by a person upon the principal, and pay it when due;

                        (10) receive for the principal and act upon a sight draft, warehouse receipt, or

other negotiable or nonnegotiable instrument;

                        (11) apply for, receive, and use letters of credit, credit and debit cards, and

traveler’s checks from a financial institution and give an indemnity or other agreement in

connection with letters of credit; and

                        (12) consent to an extension of the time of payment with respect to commercial

paper or a financial transaction with a financial institution.

            SECTION 208. OPERATION OF BUSINESS. Language granting power with respect

to operating a business authorizes the agent to:

                        (1) operate, buy, sell, enlarge, reduce, and terminate a business interest;
                        (2) act for a principal, subject to the terms of a partnership agreement or operating

agreement, to:

                                    (A) perform a duty or discharge a liability and exercise a right, power,

privilege, or option that the principal has, may have, or claims to have, under the partnership

agreement or operating agreement, whether or not the principal is a partner in a partnership or

member of a limited liability company;

                                    (B) enforce the terms of the partnership agreement or operating agreement

by litigation or otherwise; and

                                    (C) defend, submit to arbitration, settle, or compromise litigation to which

the principal is a party because of membership in a partnership or limited liability company;

                        (3) exercise in person or by proxy, or enforce by litigation or otherwise, a right,

power, privilege, or option the principal has or claims to have as the holder of a bond, share, or

other instrument of similar character and defend, submit to arbitration or mediation, settle, or

compromise litigation to which the principal is a party because of a bond, share, or similar

instrument;

                        (4) with respect to a business controlled by the principal:

                                    (A) continue, modify, renegotiate, extend, and terminate a contract made

by or on behalf of the principal with respect to the business before execution of the power of

attorney;

                                    (B) determine:

                                                (i) the location of its operation;

                                                (ii) the nature and extent of its business;

                                                (iii) the methods of manufacturing, selling, merchandising,

financing, accounting, and advertising employed in its operation;

                                                (iv) the amount and types of insurance carried; and

                                                (v) the mode of engaging, compensating, and dealing with its

accountants, attorneys, other agents, and employees;

                                    (C) change the name or form of organization under which the business is

operated and enter into a partnership agreement or operating agreement with other persons or

organize a corporation or other business entity to take over all or part of the operation of the

business; and

                                    (D) demand and receive money due or claimed by the principal or on the

principal’s behalf in the operation of the business, and control and disburse the money in the

operation of the business;

                        (5) put additional capital into a business in which the principal has an interest;

                        (6) join in a plan of reorganization, consolidation, or merger of the business;

                        (7) sell or liquidate a business or part of it at the time and upon the terms the agent

considers desirable;

                        (8) establish the value of a business under a buy-out agreement to which the

principal is a party;
                        (9) prepare, sign, file, and deliver reports, compilations of information, returns, or

other papers with respect to a business which are required by a governmental agency or

instrumentality or which the agent considers desirable, and make related payments; and

                        (10) pay, compromise, or contest taxes or assessments and perform any other act

that the agent considers desirable to protect the principal from illegal or unnecessary taxation,

fines, penalties, or assessments with respect to a business, including attempts to recover, in any

manner permitted by law, money paid before or after the execution of the power of attorney.

            SECTION 209. INSURANCE AND ANNUITIES. Language granting power with

respect to insurance and annuities authorizes the agent to:

                        (1) continue, pay the premium or assessment on, modify, rescind, release, or

terminate a contract procured by or on behalf of the principal which insures or provides an

annuity to either the principal or another person, whether or not the principal is a beneficiary

under the contract;

                        (2) procure new, different, and additional contracts of insurance and annuities for

the principal and the principal’s spouse, children, and other dependents, and select the amount,

type of insurance or annuity, and mode of payment;

                        (3) pay the premium or assessment on, modify, rescind, release, or terminate a

contract of insurance or annuity procured by the agent;

                        (4) apply for and receive a loan on the security of a contract of insurance or

annuity;

                        (5) surrender and receive the cash surrender value;

                        (6) exercise an election;

                        (7) change the manner of paying premiums;

                        (8) change or convert the type of insurance or annuity, with respect to which the

principal has or claims to have a power described in this section;

                        (9) apply for and procure government aid to guarantee or pay premiums of a

contract of insurance on the life of the principal;

                        (10) collect, sell, assign, hypothecate, borrow upon, or pledge the interest of the

principal in a contract of insurance or annuity; and

                        (11) pay from proceeds or otherwise, compromise or contest, and apply for

refunds in connection with, a tax or assessment levied by a taxing authority with respect to a

contract of insurance or annuity or its proceeds or liability accruing by reason of the tax or

assessment.

            SECTION 210. ESTATES, TRUSTS, AND OTHER BENEFICIARY

RELATIONSHIPS. Except as otherwise provided in Section 108(b), language granting power

with respect to estates, trusts, and other relationships in which the principal is a beneficiary,

authorizes the agent to act for the principal in all matters that affect a trust, probate estate,

guardianship, conservatorship, escrow, custodianship, or other fund from which the principal is,

may become, or claims to be entitled, as a beneficiary, to a share or payment, including to:

                        (1) accept,[reject, disclaim,] receive, receipt for, sell, assign, [release,] pledge,[or]

exchange, [or consent to a reduction in or modification of] a share in or payment from the fund;
                        (2) demand or obtain by litigation or otherwise money or other thing of value to

which the principal is, may become, or claims to be entitled by reason of the fund;

                        (3) initiate, participate in, and oppose litigation to ascertain the meaning, validity,

or effect of a deed, will, declaration of trust, or other instrument or transaction affecting the

interest of the principal;

                        (4) initiate, participate in, and oppose litigation to remove, substitute, or surcharge

a fiduciary;

                        (5) conserve, invest, disburse, and use anything received for an authorized

purpose; and

                        (6) transfer an interest of the principal in real property, stocks, bonds, accounts

with financial institutions or securities intermediaries, insurance, annuities, and other property, to

the trustee of a revocable trust created by the principal as settlor.

            SECTION 211. CLAIMS AND LITIGATION. Language granting power with respect

to claims and litigation authorizes the agent to:

                        (1) assert and prosecute before a court or administrative agency a claim, a claim

for relief, cause of action, counterclaim, offset, or defense against an individual, organization, or

government, including actions to recover property or other thing of value, to recover damages

sustained by the principal, to eliminate or modify tax liability, or to seek an injunction, specific

performance, or other relief;

                        (2) bring an action to determine adverse claims, intervene in litigation, and act as

amicus curiae;
                        (3) in connection with litigation, procure an attachment, garnishment, libel, order

of arrest, or other preliminary, provisional, or intermediate relief and use an available procedure

to effect or satisfy a judgment, order, or decree;

                        (4) in connection with litigation, perform any lawful act, including acceptance of

tender, offer of judgment, admission of facts, submission of a controversy on an agreed

statement of facts, consent to examination before trial, and binding the principal in litigation;

                        (5) submit to arbitration or mediation, settle, and propose or accept a compromise

with respect to a claim or litigation;

                        (6) waive the issuance and service of process upon the principal, accept service of

process, appear for the principal, designate persons upon whom process directed to the principal

may be served, execute and file or deliver stipulations on the principal’s behalf, verify pleadings,

seek appellate review, procure and give surety and indemnity bonds, contract and pay for the

preparation and printing of records and briefs, receive and execute and file or deliver a consent,

waiver, release, confession of judgment, satisfaction of judgment, notice, agreement, or other

instrument in connection with the prosecution, settlement, or defense of a claim or litigation;

                        (7) act for the principal with respect to bankruptcy or insolvency, whether

voluntary or involuntary, concerning the principal or some other person, or with respect to a

reorganization, receivership, or application for the appointment of a receiver or trustee which

affects an interest of the principal in property or other thing of value; and

                        (8) pay a judgment against the principal or a settlement made in connection with

litigation and receive and conserve money or other thing of value paid in settlement of or as

proceeds of a claim or litigation.

            SECTION 212. PERSONAL AND FAMILY MAINTENANCE. Language granting

power with respect to personal and family maintenance authorizes the agent to:

                        (1) perform the acts necessary to maintain the customary standard of living of the

principal, the principal’s spouse, children, and other individuals customarily or legally entitled to

be supported by the principal, including providing living quarters by purchase, lease, or other

contract, or paying the operating costs, including interest, amortization payments, repairs, and

taxes, on premises owned by the principal and occupied by those individuals;

                        (2) provide for the individuals described in paragraph (1) normal domestic help,

usual vacations and travel expenses, and funds for shelter, clothing, food, appropriate education,

and other current living costs;

                        (3) pay on behalf of the individuals described in paragraph (1) expenses for

necessary medical, dental, and surgical care, hospitalization, and custodial care;

                        (4) act as the principal’s personal representative pursuant to sections 1171 through

1179 of the Social Security Act, 42 U.S.C. Section 1320d (sections 262 and 264 of Public Law

104-191) [or successor provisions] and applicable regulations, in making decisions related to the

past, present, or future payment for the provision of health care consented to by the principal or

anyone authorized under the law of this state to consent to health care on behalf of the principal;
                        (5) continue any provision made by the principal, for the individuals described in

paragraph (1), for automobiles or other means of transportation, including registering, licensing,

insuring, and replacing them;

                        (6) maintain or open charge accounts for the convenience of the individuals

described in paragraph (1) and open new accounts the agent considers desirable to accomplish a

lawful purpose; and

                        (7) continue payments incidental to the membership or affiliation of the principal

in a church, club, society, order, or other organization or to continue contributions to those

organizations.

            SECTION 213. BENEFITS FROM GOVERNMENTAL PROGRAMS OR CIVIL

OR MILITARY SERVICE. Language granting power with respect to benefits from social

security, medicare, medicaid, other governmental programs, or civil or military service,

authorizes the agent to:

                        (1) execute vouchers in the name of the principal for allowances and

reimbursements payable by the United States or a foreign government or by a state or

subdivision of a state to the principal, including allowances and reimbursements for

transportation of the individuals described in Section 212(1), and for shipment of their household

effects;

                        (2) take possession and order the removal and shipment of property of the

principal from a post, warehouse, depot, dock, or other place of storage or safekeeping, either
governmental or private, and execute and deliver a release, voucher, receipt, bill of lading,

shipping ticket, certificate, or other instrument for that purpose;

                        (3) prepare, file, and prosecute a claim of the principal to a benefit or assistance,

financial or otherwise, to which the principal claims to be entitled under a statute or

governmental regulation;

                        (4) prosecute, defend, submit to arbitration or mediation, settle, and propose or

accept a compromise with respect to any benefit or assistance the principal may be entitled to

receive under a statute or governmental regulation; and

                        (5) receive the financial proceeds of a claim of the type described in paragraph (3)

and conserve, invest, disburse, or use anything so received for a lawful purpose.

            SECTION 214. RETIREMENT PLANS. Except as otherwise provided in Section

108(b), language granting power with respect to retirement plans authorizes the agent to:

                        (1) select a payment option under a retirement plan in which the principal

participates, including a plan for a self-employed individual;

                        (2) make voluntary contributions to those plans;

                        (3) exercise the investment powers available under a self-directed retirement plan;

                        (4) make a rollover of benefits into another retirement plan;

                        (5) if authorized by the plan, borrow from, sell assets to, purchase assets from, or

request distributions from the plan; and

                        (6) waive the right of the principal to be a beneficiary of a joint or survivor

annuity if the principal is a spouse who is not employed.

            SECTION 215. TAXES. Language granting power with respect to tax matters

authorizes the agent to:

                        (1) prepare, sign, and file federal, state, local, and foreign income, gift, payroll,

Federal Insurance Contributions Act, and other tax returns, claims for refunds, requests for

extension of time, petitions regarding tax matters, and any other tax-related documents, including

receipts, offers, waivers, consents, including consents and agreements under the Internal

Revenue Code, 26 U.S.C. Section 2032A [or successor provisions], closing agreements, and any

power of attorney required by the Internal Revenue Service or other taxing authority with respect

to a tax year upon which the statute of limitations has not run and the following 25 tax years;

                        (2) pay taxes due, collect refunds, post bonds, receive confidential information,

and contest deficiencies determined by the Internal Revenue Service or other taxing authority;

                        (3) exercise any election available to the principal under federal, state, local, or

foreign tax law; and

                        (4) act for the principal in all tax matters for all periods before the Internal

Revenue Service, and any other taxing authority.

            SECTION 216. GIFTS. Except as otherwise provided in Section 108(b), language

granting power with respect to gifts authorizes the agent to make gifts of any of the principal’s

property to individuals or organizations within the limits of the annual exclusion under the

Internal Revenue Code, 26 U.S.C. Section 2503(b) [or successor provisions], as the agent

determines to be in the principal’s best interest based on all relevant factors, including:

                        (1) the value and nature of the principal’s property;

                        (2) the principal’s foreseeable obligations and need for maintenance;

                        (3) minimization of income, estate, inheritance, generation-skipping transfer or

gift taxes;

                        (4) eligibility for public benefits or assistance under a statute or governmental

regulation; and

                        (5) the principal’s personal history of making or joining in making gifts.

            SECTION 217. DELEGATION OF AGENCY AUTHORITY. Language granting

power with respect to delegation of agency authority authorizes the agent to delegate revocably

by writing or other record to one or more persons a power granted to the agent by the principal.

[ARTICLE] 3
STATUTORY FORM POWER OF ATTORNEY

            SECTION 301. OPTIONAL FORM. The following form may be used to create a

power of attorney that has the meaning and effect prescribed by this [act].
STATUTORY FORM POWER OF ATTORNEY

IMPORTANT INFORMATION

This power of attorney authorizes another person, your agent, to make property decisions
for you, the principal. Your agent can make decisions and act with respect to your property
(including your money) even if you lose capacity to act for yourself. The meaning of powers
listed in this document is explained in the Uniform Power of Attorney Act. This power of
attorney does not authorize the agent to make medical or health care decisions for you.

You should select someone you trust to serve as your agent. The agent’s authority will
continue until your death unless you revoke the power of attorney or the agent resigns. If
your agent can no longer act for you, your power of attorney will end unless you have
named a successor agent. You may also name a second successor agent.
If you grant authority in this power of attorney that is inconsistent with authority you have
already granted in another power of attorney, the earlier power of attorney will be revoked
to the extent of the inconsistency. This power of attorney becomes effective immediately
unless you state otherwise in the Special Instructions.

Before signing this document, you should seek legal advice if you have questions about the
power of attorney or the authority you are granting to your agent.

DESIGNATION OF AGENT

I, ____________________________________ (principal’s full name), of

______________________________________________________________________________
_____________________________________________________________(principal’s address)
name the following person as my agent:
______________________________________________________________________________
______________________________________________________________________________
(full name and address of agent)

OPTIONAL DESIGNATION OF SUCCESSOR AGENT(S)

If my agent can no longer act for me, I name as my successor agent:

______________________________________________________________________________
______________________________________________________________________________
(full name and address of successor agent)

If my successor agent can no longer act for me, I name as my second successor agent:

______________________________________________________________________________
______________________________________________________________________________
(full name and address of second successor agent)

GRANT OF GENERAL AUTHORITY

I grant my agent and any successor agent general authority to act for me with respect to the
following subjects as defined in the Uniform Power of Attorney Act:

(CROSS OUT any subject you DO NOT want to include in the agent’s general authority.)

 • Real Property
 • Tangible Personal Property
 • Stocks and Bonds
 • Commodities and Options
 • Banks and Other Financial Institutions
 • Operation of Business
 • Insurance and Annuities
 • Estates, Trusts, and Other Beneficiary Relationships
 • Claims and Litigation
 • Personal and Family Maintenance
 • Benefits from Government Programs or Military Service
 • Retirement Plans
 • Taxes

GRANT OF SPECIFIC AUTHORITY

Neither my agent nor a successor agent may do any of the following specific acts for me
UNLESS I have also INITIALED the blank space (___) in front of the specific power to act:
 
(CAUTION: Granting any of the following powers to your agent will give your agent the
authority to take actions which could significantly reduce your property or change how
your property is distributed at your death. INITIAL ONLY the specific powers you WANT
to include in the agent’s authority.)

 (___)   Create, modify, or revoke a trust

 (___)   Fund a trust created by someone other than me
 (___)   Make a gift, subject to the limitations of the Uniform Power of Attorney Act and any
special instructions in this power of attorney
 (___)   Create or change rights of survivorship
 (___)   Create or change a beneficiary designation
 (___)   Create in the agent or a person customarily supported by the agent an interest in my
property through gift, survivorship right or beneficiary designation
 (___)   Authorize another person to exercise the agency authority granted under this power of
attorney
 [(___) Disclaim or refuse an interest in property, including a power of appointment]

SPECIAL INSTRUCTIONS

(On the following lines you may give special instructions limiting or extending the powers
granted to your agent.)

__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

EFFECTIVE DATE

This power of attorney is effective immediately unless I have stated otherwise in the Special
Instructions.
 RELIANCE ON THIS POWER OF ATTORNEY

Any person, including my agent, may rely upon the validity of this power of attorney or a copy
of it unless that person knows it is terminated or invalid.

SIGNATURE AND ACKNOWLEDGMENT

 
____________________________________________                    ________________________
Your signature                                                                        Date

____________________________________________
Your name printed
____________________________________________
____________________________________________
Your address

[This document prepared by:

________________________________________________________________________
________________________________________________________________________]

[State of ____________________________
[County] of___________________________

This document was acknowledged before me on __________________________ (date),

by______________________________________(name of Principal).

____________________________________________                    (Seal, if any)
Signature of Notary 
My commission expires: ________________________]

IMPORTANT INFORMATION FOR AGENT

            When you accept the authority granted under this power of attorney a special legal
relationship, known as agency, is created between you and the principal. Agency imposes
upon you fiduciary duties that continue until you resign or the power of attorney is
terminated or revoked. You must:
 
(1)       do what you know the principal reasonably expects you to do with the principal’s
property;
(2)       act in good faith with care, competence, and diligence for the best interest of the
principal;
(3)       avoid conflicts that would impair your ability to act in the principal’s best interest;
(4)keep a complete record of all receipts, disbursements, and transactions conducted for
the principal;
(5)do nothing beyond the authority granted in this power of attorney; and
(6)     preserve the principal’s estate plan to the extent you know the plan, unless preserving
the estate plan is inconsistent with the principal’s best interest.

            If you have special skills or expertise then you must use those special skills and
expertise when acting for the principal. You must disclose your identity as an agent
whenever you act for the principal by writing or printing the name of the principal and
signing your own name as “agent” in the following manner:

(Principal’s Name) by (Your Signature) as Agent

            The meaning of the powers granted to you is defined in the Uniform Power of
Attorney Act. If you violate the Uniform Power of Attorney Act or act outside the authority
granted, you may be liable for any damages, including attorneys’ fees and expenses, caused
by your violation.

            You should seek legal advice if there is anything about this document or your duties
that you do not understand.

AGENT’S ACCEPTANCE

(This statement of acceptance may be signed any time after the principal signs the power of
attorney.)

I accept appointment as agent under this power of attorney.

 
______________________________________                    ______________________________
Agent’s signature                                                                   Date

______________________________________
Agent’s name printed
 
______________________________________                    ______________________________
Successor Agent’s signature                                                  Date

______________________________________
Successor Agent’s name printed
 
______________________________________                    ______________________________
Second Successor Agent’s signature                                      Date

______________________________________
Second Successor Agent’s name printed
          

ADDENDUM

(For use by Agent to attach a description of Principal’s Property.)

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
 

            SECTION 302. AGENT CERTIFICATION. The following optional form may be used

by an agent to certify facts concerning a power of attorney.

AGENT’S CERTIFICATION AS TO THE VALIDITY OF POWER OF ATTORNEY

AND AGENT’S AUTHORITY

[State of _____________________________
[County] of___________________________]

I, _____________________________________________ (name of Agent), [certify] that

__________________________________________(name of Principal) signed a Power of
Attorney (a copy of the Power of Attorney is attached to this certification) on
________________________ (date), naming the undersigned as an agent or successor agent.

I further [certify] that to my knowledge:

            (1) the Principal is alive and has not revoked the Power of Attorney or my authority to act
under the Power of Attorney and that the Power of Attorney remains in full force and effect;

            (2) if the Power of Attorney was drafted to become effective upon the happening of an
event or contingency that such event or contingency has occurred; and

            (3) if I was named as a successor agent that the initial or predecessor agent is no longer
able to serve.

SIGNATURE AND ACKNOWLEDGMENT

 
____________________________________________                    ________________________
Agent’s signature                                                                               Date

____________________________________________
Agent’s name printed
____________________________________________
____________________________________________
Agent’s address

[This document was acknowledged before me on __________________________ (date),

by______________________________________(name of Agent).

____________________________________________                    (Seal, if any)
Signature of Notary 
My commission expires: ________________________]

[This document prepared by:

________________________________________________________________________
________________________________________________________________________]

[ARTICLE] 4

MISCELLANEOUS PROVISIONS

 
            SECTION 401. UNIFORMITY OF APPLICATION AND CONSTRUCTION. This

[act] must be applied and construed to effectuate its general purpose to make uniform the law

with respect to the subject matter of this [act] among states enacting it.

            SECTION 402. ELECTRONIC SIGNATURES. This [act] modifies, limits, and

supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C.

Section 7001 et seq., except that nothing in this [act] modifies, limits, or supersedes Section

7001(c) of that Act or authorizes electronic delivery of any of the notices described in Section

7003(b) of that Act.

            SECTION 403. EFFECTIVE DATE. This [act] takes effect ______________.

            SECTION 404. EFFECT ON EXISTING POWERS OF ATTORNEY. Except as

otherwise provided in this [act], on [the effective date of this [act]]:

                        (1) this [act] applies to all powers of attorney created before, on, or after [its

effective date];

                        (2) this [act] applies to all judicial proceedings concerning powers of attorney

commenced on or after [its effective date];

                        (3) this [act] applies to judicial proceedings concerning powers of attorney

commenced before [its effective date] unless the court finds that application of a particular

provision of this [act] would substantially interfere with the effective conduct of the judicial

proceedings or prejudice the rights of the parties, in which case the particular provision of this

[act] does not apply and the superseded law applies;

                        (4) an act done before [the effective date of the [act]] is not affected by this [act].
            SECTION 405. REPEAL. The following acts and parts of acts are repealed:

                        (1) [Uniform Durable Power of Attorney Act]

                        (2) [Uniform Statutory Form Power of Attorney Act]

                        (3) [Article 5, Part 5 of the Uniform Probate Code]