82R11655 T
By: Hartnett H.B. No. 1858
A BILL TO BE ENTITLED
AN ACT
relating to the creation, administration, and interpretation of
powers of attorney, including statutory powers of attorney.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Texas Probate Code is amended by adding
Chapter XIIA to read as follows:
CHAPTER XIIA. POWER OF ATTORNEY ACT
PART 1. GENERAL PROVISIONS
Sec. 521. SHORT TITLE. This chapter may be cited as the
Power of Attorney Act.
Sec. 522. DEFINITIONS. In this chapter:
(1) "Agent" means a person granted authority to act
for a principal under a power of attorney, whether denominated an
agent, attorney in fact, or otherwise.
(2) "Durable," with respect to a power of attorney,
means a power of attorney not terminated by the principal's
incapacity.
(3) "Electronic" means relating to technology having
electrical, digital, magnetic, wireless, optical, electromagnetic,
or similar capabilities.
(4) "Good faith" means honesty in fact.
(5) "Incapacity" means inability of an individual to
manage property or business affairs because the individual:
(A) has an impairment in the ability to receive
and evaluate information or make or communicate decisions even with
the use of technological assistance; or
(B) is:
(i) missing;
(ii) detained, including incarcerated in a
penal system; or
(iii) outside the United States and unable
to return.
(6) "Person" means an individual, corporation,
business trust, estate, trust, partnership, limited liability
company, association, joint venture, public corporation,
government or governmental subdivision, agency, or
instrumentality, or any other legal or commercial entity.
(7) "Power of attorney" means a writing or other
record that, in accordance with this chapter, grants authority to
an agent to act in the place of the principal, whether or not the
term power of attorney is used.
(8) "Presently exercisable general power of
appointment," with respect to property or a property interest
subject to a power of appointment, means power exercisable at the
time in question to vest absolute ownership in the principal
individually, the principal's estate, the principal's creditors, or
the creditors of the principal's estate. The term includes a power
of appointment not exercisable until the occurrence of a specified
event, the satisfaction of an ascertainable standard, or the
passage of a specified period only after the occurrence of the
specified event, the satisfaction of the ascertainable standard, or
the passage of the specified period. The term does not include a
power exercisable in a fiduciary capacity or only by will.
(9) "Principal" means an individual who grants
authority to an agent in a power of attorney.
(10) "Property" means anything that may be the subject
of ownership, whether real or personal, or legal or equitable, or
any interest or right therein.
(11) "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.
(12) "Sign," with respect to present intent to
authenticate or adopt a record, means:
(A) to execute or adopt a tangible symbol; or
(B) to attach to or logically associate with the
record an electronic sound, symbol, or process.
(13) "State" means a state of the United States, the
District of Columbia, Puerto Rico, the United States Virgin
Islands, or any territory or insular possession subject to the
jurisdiction of the United States.
(14) "Stocks and bonds" means stocks, bonds, mutual
funds, and other types of securities or financial instruments,
whether held directly, indirectly, or in any other manner. The term
does not include commodity futures contracts and call or put
options on stocks or stock indexes.
Sec. 523. APPLICABILITY. This chapter applies to all
writings or other records that grant authority to an agent to act in
the place of the principal, whether or not the term "power of
attorney" is used, except:
(1) a power to the extent it is coupled with an
interest in the subject of the power, including a power given to or
for the benefit of a creditor in connection with a credit
transaction;
(2) a medical power of attorney under Subchapter D,
Chapter 166, Health and Safety Code, or other power to make health
care decisions;
(3) a proxy or other delegation to exercise voting
rights or management rights with respect to an entity; and
(4) a power created on a form prescribed by a
government or governmental subdivision, agency, or instrumentality
for a governmental purpose.
Sec. 524. POWER OF ATTORNEY IS DURABLE. A power of attorney
created under this chapter is durable unless the power of attorney
expressly provides that it is terminated by the incapacity of the
principal.
Sec. 525. PRINCIPLES OF LAW AND EQUITY. Unless displaced by
a provision of this chapter, the principles of law and equity
supplement this chapter.
Sec. 526. EFFECT OF CHAPTER ON LAWS APPLICABLE TO FINANCIAL
INSTITUTIONS AND ENTITIES. This chapter does not supersede any
other law applicable to financial institutions or other entities,
and the other law controls to the extent the law is inconsistent
with this chapter.
Sec. 527. REMEDIES UNDER OTHER LAW. The remedies under this
chapter are not exclusive and do not abrogate any right or remedy
under the other laws of this state.
Sec. 528. UNIFORMITY OF APPLICATION AND CONSTRUCTION. In
applying and construing this chapter, consideration must be given
to the need to promote uniformity of the law with respect to the
subject matter of this chapter among states that enact a law
substantially similar to this chapter.
Sec. 529. RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND
NATIONAL COMMERCE ACT. This chapter modifies, limits, and
supersedes the federal Electronic Signatures in Global and National
Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify,
limit, or supersede Section 101(c) of that Act (15 U.S.C. Section
7001(c)) or authorize electronic delivery of any of the notices
described in Section 103(b) of that Act (15 U.S.C. Section
7003(b)).
PART 2. CREATION, MEANING, AND EFFECT OF POWER OF ATTORNEY
Sec. 541. EXECUTION OF POWER OF ATTORNEY. (a) A power of
attorney is executed if the writing or other record is:
(1) signed by the principal or in the principal's
conscious presence by another individual directed by the principal
to sign the principal's name on the power of attorney; and
(2) acknowledged by the principal.
(b) A signature on a power of attorney is presumed to be
genuine if the principal acknowledges the signature in accordance
with Chapter 121, Civil Practice and Remedies Code.
Sec. 542. VALIDITY OF POWER OF ATTORNEY. (a) A power of
attorney executed in this state on or after September 1, 2011, is
valid if its execution complies with Section 541 of this code.
(b) A power of attorney executed in this state before
September 1, 2011, is valid if its execution complied with the law
of this state as it existed at the time of execution.
(c) A power of attorney executed other than in this state is
valid in this state if, when the power of attorney was executed, the
execution complied with:
(1) the law of the jurisdiction that determines the
meaning and effect of the power of attorney pursuant to Section 543
of this code; or
(2) the requirements for a military power of attorney
pursuant to 10 U.S.C. Section 1044b.
(d) Except as otherwise provided by statute other than this
chapter, a photocopy or electronically transmitted copy of an
original power of attorney has the same effect as the original.
Sec. 543. MEANING AND EFFECT OF POWER OF ATTORNEY. The
meaning and effect of a power of attorney is determined by the law
of the jurisdiction indicated in the power of attorney and, in the
absence of an indication of jurisdiction, by the law of the
jurisdiction in which the power of attorney was executed.
Sec. 544. WHEN POWER OF ATTORNEY EFFECTIVE. (a) A power of
attorney is effective when executed in accordance with Section 541
of this code unless the principal provides in the power of attorney
that it becomes effective at a future date or on the occurrence of a
future event or contingency.
(b) If a power of attorney becomes effective on the
occurrence of a future event or contingency, the principal, in the
power of attorney, may authorize one or more persons to determine in
a writing or other record that the event or contingency has
occurred.
(c) If a power of attorney becomes effective on the
principal's incapacity and the principal has not authorized a
person to determine whether the principal is incapacitated, or the
person authorized is unable or unwilling to make the determination,
unless the power of attorney otherwise provides, the power of
attorney becomes effective on a determination in a writing or other
record by:
(1) a physician that the principal is incapacitated
within the meaning of Section 522(5)(A) of this code or is
incapacitated within the meaning of that term as defined in the
power of attorney; or
(2) an attorney at law, a judge, or an appropriate
governmental official that the principal is incapacitated within
the meaning of Section 522(5)(B) of this code.
(d) A person authorized by the principal in the power of
attorney to determine whether the principal is incapacitated may
act as the principal's personal representative pursuant to Sections
1171 through 1179, Health Insurance Portability and Accountability
Act of 1996 (42 U.S.C. Sections 1320d through 1320d-8), and
applicable regulations, to obtain access to the principal's health
care information and communicate with the principal's health care
provider.
Sec. 545. JUDICIAL RELIEF. (a) The following persons may
petition a court to construe a power of attorney or review the
agent's conduct, and grant appropriate relief:
(1) the principal or the agent;
(2) a guardian, conservator, or other fiduciary acting
for the principal;
(3) a person named as a beneficiary to receive any
property, benefit, or contractual right on the principal's death;
(4) a governmental agency having regulatory authority
to protect the welfare of the principal; and
(5) a person that demonstrates to the court sufficient
interest in the principal's welfare or estate.
(b) A person asked to accept the power of attorney may
petition a court to construe the power of attorney.
(c) On motion by the principal, the court shall dismiss a
petition filed under this section unless the court finds that the
principal lacks capacity to revoke the agent's authority or the
power of attorney.
PART 3. DUTIES OF AGENTS; EFFECT OF CERTAIN ACTS ON EXERCISE OF
AGENT'S AUTHORITY
Sec. 551. RELATION OF ATTORNEY IN FACT OR AGENT TO
COURT-APPOINTED GUARDIAN OF ESTATE. (a) If, after execution of a
power of attorney, a court of the principal's domicile appoints a
permanent guardian of the estate of the principal, the powers of the
agent terminate on the qualification of the permanent guardian of
the estate, and the agent shall deliver to that guardian all assets
of the ward's estate in the agent's possession and shall account to
the permanent guardian of the estate as an agent would be required
to account to the principal had the principal terminated the
agent's powers.
(b) If, after execution of a power of attorney, a court of
the principal's domicile appoints a temporary guardian of the
estate of the principal, the court may suspend the powers of the
agent on the qualification of the temporary guardian of the estate
until the date on which the term of the temporary guardian expires.
(c) Subsection (b) of this section may not be construed to
prohibit the application for or issuance of a temporary restraining
order under applicable law.
Sec. 552. TERMINATION OF POWER OF ATTORNEY OR AGENT'S
AUTHORITY. (a) A power of attorney terminates 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;
(4) the power of attorney provides that it terminates;
(5) the purpose of the power of attorney is
accomplished;
(6) the principal revokes the agent's authority or the
agent dies, becomes incapacitated, or resigns, and the power of
attorney does not provide for another agent to act under the power
of attorney; or
(7) a permanent guardian of the estate of the
principal has qualified to serve in that capacity as provided by
Section 551 of this code.
(b) An agent's authority terminates when:
(1) the principal revokes the authority;
(2) the agent dies, becomes incapacitated, or resigns;
(3) an action is filed for the dissolution or
annulment of the agent's marriage to the principal or to declare the
marriage of the agent and principal void, unless the power of
attorney otherwise provides; or
(4) the power of attorney terminates.
(c) Unless the power of attorney otherwise provides, an
agent's authority is exercisable until the authority terminates
under Subsection (b) of this section, notwithstanding a lapse of
time since the execution of the power of attorney.
(d) Termination of an agent's authority or of a power of
attorney is not effective as to the agent or another person that,
without actual knowledge of the termination, acts in good faith
under the power of attorney. An act so performed, unless otherwise
invalid or unenforceable, binds the principal and the principal's
successors in interest.
(e) For a power of attorney that is not durable, incapacity
of the principal does not revoke or terminate the power of attorney
as to an agent or other person that, without actual knowledge of the
incapacity, acts in good faith under the power of attorney. An act
so performed, unless otherwise invalid or unenforceable, binds the
principal and the principal's successors in interest.
(f) The execution of a power of attorney does not revoke a
power of attorney previously executed by the principal unless the
subsequent power of attorney provides that the previous power of
attorney is revoked or that all other powers of attorney are
revoked.
Sec. 554. REIMBURSEMENT AND COMPENSATION OF AGENT. Unless
the power of attorney otherwise provides, an agent is entitled to
reimbursement of expenses reasonably incurred on the principal's
behalf and to compensation that is reasonable under the
circumstances.
Sec. 555. AGENT'S ACCEPTANCE OF APPOINTMENT. Except as
otherwise provided in the power of attorney, a person accepts
appointment as an agent under a power of attorney by exercising
authority or performing duties as an agent or by any other assertion
or conduct indicating acceptance.
Sec. 556. AGENT'S DUTIES. (a) Notwithstanding provisions
in the power of attorney to the contrary, an agent that has accepted
appointment shall:
(1) act in accordance with the principal's reasonable
expectations to the extent actually known by the agent and,
otherwise, in the principal's best interest;
(2) act in good faith; and
(3) act only within the scope of authority granted in
the power of attorney.
(e) If an agent is selected by the principal because of
special skills or expertise possessed by the agent or in reliance on
the agent's representation that the agent has special skills or
expertise, the special skills or expertise must be considered in
determining whether the agent has acted with care, competence, and
diligence under the circumstances.
(f) Absent a breach of duty to the principal, an agent is not
liable if the value of the principal's property declines.
(h) Except as otherwise provided in the power of attorney,
an agent is not required to disclose receipts, disbursements, or
transactions conducted on the principal's behalf unless ordered by
a court or requested by the principal, a guardian, a conservator,
another fiduciary acting for the principal, a governmental agency
having authority to protect the welfare of the principal, or, on the
principal's death, the personal representative or successor in
interest of the principal's estate. Not later than the 60th day
after the date a request is made by a person described by this
subsection, the agent shall comply with the request or provide a
writing or other record substantiating why additional time is
needed to comply with the request. An agent requesting an extension
of time has no more than 30 additional days to comply with the
request. Unless directed otherwise by the requesting party, a
disclosure by the agent of documentation or information requested
under this subsection must include:
(1) the property belonging to the principal that has
come to the agent's knowledge or into the agent's possession;
(2) all actions taken or decisions made by the agent;
(3) a complete account of receipts, disbursements, and
other actions of the agent, including their source and nature, with
receipts of principal and income shown separately;
(4) a list of all property over which the agent has
exercised control, with an adequate description of each asset and
the asset's current value if known to the agent;
(5) the cash balance on hand and the name and location
of the depository where the cash is kept;
(6) all known liabilities of the principal; and
(7) any other information and facts known to the agent
as may be necessary to a full and definite understanding of the
exact condition of the property belonging to the principal.
(i) If the agent fails or refuses to inform the principal of
the actions taken under the power of attorney or to provide
documentation or the requested disclosure within the 60-day period,
or as extended, the requesting party may file suit to compel the
agent to:
(1) provide the disclosure;
(2) deliver the assets; or
(3) terminate the power of attorney.
Sec. 558. AGENT'S LIABILITY. An agent that violates this
chapter is liable to the principal or the principal's successors in
interest for the amount required to:
(1) restore the value of the principal's property to
what the value of the property would have been had the violation
not occurred; and
(2) reimburse the principal or the principal's
successors in interest for the attorney's fees and costs paid on the
agent's behalf.
Sec. 559. AGENT'S RESIGNATION; NOTICE. Unless the power of
attorney provides a different method for an agent's resignation, an
agent may resign by giving notice to the principal and, if the
principal is incapacitated:
(1) to the permanent guardian of the estate,
conservator, or other personal representative of the principal if
one has been appointed for the principal, and a successor agent
under the power of attorney; or
(2) if there is no person described in Subsection (a)
of this section, to:
(A) the principal's caregiver;
(B) another person reasonably believed by the
agent to have sufficient interest in the principal's welfare; or
(C) a governmental agency having authority to
protect the welfare of the principal.
PART 4. PRESENTATION OF POWER OF ATTORNEY TO THIRD PARTIES
Sec. 561. ACCEPTANCE OF AND RELIANCE ON POWER OF ATTORNEY.
(a) A person that in good faith accepts a power of attorney without
actual knowledge that the signature is not genuine may rely on the
presumption under Section 541(b) of this code that the signature is
genuine.
(b) A person that in good faith accepts a power of attorney
without actual knowledge that the power of attorney is void,
invalid, or terminated, that the purported agent's authority is
void, invalid, or terminated, or that the agent is exceeding or
improperly exercising the agent's authority may rely on the power
of attorney as if:
(1) the power of attorney were genuine, valid, and
still in effect;
(2) the agent's authority were genuine, valid, and
still in effect; and
(3) the agent had not exceeded and had properly
exercised the authority.
(c) A person that is asked to accept a power of attorney may
request, and rely on, without further investigation:
(1) an agent's certification under penalty of perjury
of any factual matter concerning the principal, agent, or power of
attorney;
(2) an English translation of the power of attorney if
the power of attorney contains, wholly or partly, language other
than English; and
(3) an opinion of counsel as to any matter of law
concerning the power of attorney if the person making the request
provides in a writing or other record the reason for the request.
(d) An English translation or an opinion of counsel
requested under this section must be provided at the principal's
expense unless the request is made more than seven business days
after the power of attorney is presented for acceptance.
(e) For purposes of this section and Section 562 of this
code, a person that conducts activities through employees is
without actual knowledge of a fact relating to a power of attorney,
a principal, or an agent if the employee conducting the transaction
involving the power of attorney is without actual knowledge of the
fact.
Sec. 562. LIABILITY FOR REFUSAL TO ACCEPT POWER OF
ATTORNEY. (a) Except as otherwise provided in Subsection (d) of
this section, a person shall either accept a power of attorney or
request a certification, a translation, or an opinion of counsel
under Section 561(c) of this code not later than the seventh
business day after presentation of the power of attorney for
acceptance.
(b) If a person requests a certification, a translation, or
an opinion of counsel under Section 561 of this code, the person
shall accept the power of attorney not later than the fifth business
day after receipt of the certification, translation, or opinion of
counsel.
(c) Except as provided by Subsection (d) of this section, a
person may not:
(1) require an additional or different form of power
of attorney for authority granted in the power of attorney
presented; or
(2) require that the power of attorney be recorded in
the official public records of a county clerk unless such
recordation is required by Section 571 of this code.
(d) A person is not required to accept a power of attorney
if:
(1) the person is not otherwise required to engage in a
transaction with the principal in the same circumstances;
(2) the person's engaging in a transaction with the
agent or the principal in the same circumstances would be
inconsistent with federal law or state law other than this chapter;
(3) the person has actual knowledge of the termination
of the agent's authority or of the power of attorney before exercise
of the power;
(4) a request for a certification, a translation, or
an opinion of counsel under Section 561 of this code is refused;
(5) the person in good faith believes that the power is
not valid or that the agent does not have the authority to perform
the act requested, whether or not a certification, a translation,
or an opinion of counsel under Section 561 of this code has been
requested or provided; or
(6) the person makes, or has actual knowledge that
another person has made, a report to a law enforcement agency or
other federal or state agency, including the Department of Family
and Protective Services, stating a good faith belief that the
principal may be subject to physical or financial abuse, neglect,
exploitation, or abandonment by the agent or a person acting for or
with the agent.
(e) A person that refuses to accept a power of attorney in
violation of this section is subject to:
(1) a judgment for damages to the same extent as if the
person had refused to allow the principal to act on the principal's
own behalf;
(2) a court order mandating acceptance of the power of
attorney; and
(3) liability for reasonable attorney's fees and costs
incurred in any action or proceeding that:
(A) confirms the validity of the power of
attorney;
(B) results in the award of damages against the
person; or
(C) mandates acceptance of the power of attorney.
PART 5. EXERCISE OF POWER OF ATTORNEY; CONSTRUCTION OF POWERS
RELATED TO POWER OF ATTORNEY
Sec. 571. AUTHORITY THAT REQUIRES SPECIFIC GRANT; GRANT OF
GENERAL AUTHORITY. (a) An agent under a power of attorney may do
the following on behalf of the principal or with the principal's
property only if the power of attorney expressly grants the agent
the authority and exercise of the authority is not otherwise
prohibited by another agreement or instrument to which the
authority or property is subject:
(1) create, amend, revoke, or terminate an inter vivos
trust;
(2) make a gift;
(3) create or change rights of survivorship;
(4) create or change a beneficiary designation; or
(6) waive the principal's right to be a beneficiary of
a joint and survivor annuity, including a survivor benefit under a
retirement plan.
(b) Notwithstanding a grant of authority to perform an act
described in Subsection (a) of this section, unless the power of
attorney otherwise provides, an agent that is not an ancestor,
spouse, or descendant of the principal may not exercise authority
under a power of attorney to create in the agent, or in an
individual to whom the agent owes a legal obligation of support, an
interest in the principal's property, whether by gift, right of
survivorship, beneficiary designation, disclaimer, or otherwise.
(c) Subject to Subsections (a), (b), (d), and (e) of this
section, if a power of attorney grants to an agent authority to
perform all acts that a principal could perform, the agent has the
general authority described in Sections 574 through 586 of this
code.
(d) Unless the power of attorney otherwise provides, a grant
of authority to make a gift is subject to Section 587 of this code.
(e) Subject to Subsections (a), (b), and (d) of this
section, if the subjects over which authority is granted in a power
of attorney are similar or overlap, the broadest authority
controls.
(f) Authority granted in a power of attorney is exercisable
with respect to property that the principal has when the power of
attorney is executed or acquires later, whether or not the property
is located in this state and whether or not the authority is
exercised or the power of attorney is executed in this state.
(g) An act performed by an agent pursuant to a power of
attorney has the same effect and inures to the benefit of and binds
the principal and the principal's successors in interest as if the
principal had performed the act.
Sec. 572. INCORPORATION OF AUTHORITY. (a) An agent has
authority described in this chapter if the power of attorney refers
to general authority with respect to the descriptive term for the
subjects stated in Sections 574 through 586 of this code or cites
the section in which the authority is described.
(b) A reference in a power of attorney to general authority
with respect to the descriptive term for a subject in Sections 574
through 586 of this code or a citation to one of those sections
incorporates the entire section as if it were set out in its
entirety in the power of attorney.
(c) A principal may modify authority incorporated by
reference.
Sec. 573. CONSTRUCTION OF AUTHORITY GENERALLY. Except as
otherwise provided in the power of attorney, by executing a power of
attorney that incorporates by reference a subject described in
Sections 574 through 586 of this code or that grants to an agent
authority to perform all acts that a principal could perform
pursuant to Section 571(c) of this code, a principal authorizes the
agent, with respect to that subject, to:
(1) demand, receive, and obtain by litigation or
otherwise any money or other thing of value to which the principal
is, may become, or may claim to be entitled, and conserve, invest,
disburse, or use any money or other thing of value received or
obtained under this subdivision 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, cancel, terminate, reform, restate, release, or
modify the contract or another contract made by the principal or on
the principal's behalf;
(3) execute, acknowledge, seal, deliver, file, or
record any instrument or communication the agent considers
desirable to accomplish a purpose of a transaction, including
creating at any time a schedule listing some or all of the
principal's property and attaching it to the power of attorney;
(4) with respect to a claim existing in favor of or
against the principal:
(A) initiate, participate in, submit to
alternative dispute resolution, settle, oppose, or propose or
accept a compromise; or
(B) intervene in litigation relating to the
claim;
(5) seek on the principal's behalf the assistance of a
court or other governmental agency to carry out an act authorized in
the power of attorney;
(6) engage, compensate, and discharge an attorney,
accountant, discretionary investment manager, expert witness, or
other advisor;
(7) prepare, execute, and file a record, report, or
other document to safeguard or promote the principal's interest
under a statute or regulation;
(8) communicate with any representative or employee of
a government or governmental subdivision, agency, or
instrumentality on the principal's behalf;
(9) access communications intended for the principal,
and communicate on the principal's behalf, whether by mail,
electronic transmission, telephone, or other means; and
(10) perform any lawful act with respect to the
subject that the principal may perform with respect to the subject
or property related to the subject.
Sec. 574. REAL PROPERTY. (a) Unless the power of attorney
otherwise provides, language in a power of attorney granting
general authority with respect to real property authorizes the
agent to:
(1) demand, buy, lease, receive, accept as a gift or as
security for an extension of credit, or otherwise acquire or reject
an interest in real property or a right incident to real property;
(2) sell, exchange, convey with or without covenants,
representations, or warranties, quitclaim, release, surrender,
retain title for security, encumber, partition, consent to
partitioning, subject to an easement or covenant, subdivide, apply
for zoning or other governmental permits, plat or consent to
platting, develop, grant an option concerning, lease, sublease,
contribute to an entity in exchange for an interest in that entity,
or otherwise grant or dispose of an interest in real property or a
right incident to real property;
(3) pledge or mortgage an interest in real property or
right incident to real property as security to borrow money or pay,
renew, or extend the time of payment of a debt of the principal or a
debt guaranteed by the principal;
(4) 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 that exists or is
asserted to exist;
(5) 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 liability, a casualty, or
other loss;
(B) obtaining or regaining possession of or
protecting the interest or right by litigation or otherwise;
(C) paying, assessing, compromising, or
contesting taxes or assessments or applying for and receiving
refunds in connection with the taxes or assessments; and
(D) purchasing supplies, hiring assistance or
labor, and making repairs or alterations to the real property;
(6) use, develop, alter, replace, remove, erect, or
install structures or other improvements on real property in or
incident to which the principal has or claims to have an interest or
right;
(7) participate in a reorganization with respect to
real property or an entity that owns an interest in or right
incident to real property and receive, and hold, and act with
respect to stocks, bonds, or other property received in a plan of
reorganization, including:
(A) selling or otherwise disposing of the stocks,
bonds, or other property received in the reorganization plan;
(B) exercising or selling an option, right of
conversion, or similar right with respect to the stocks, bonds, or
other property received in the reorganization plan; and
(C) exercising any voting rights with respect to
the property in person or by proxy;
(8) change the form of title of an interest in or right
incident to real property;
(9) dedicate to public use, with or without
consideration, easements or other real property in which the
principal has or claims to have an interest;
(10) enter into mineral transactions, including:
(A) negotiating and making oil, gas, and other
mineral leases covering any land, mineral, or royalty interest in
which the principal has, or claims to have, an interest;
(B) pooling and unitizing part or all of the
principal's land, mineral leasehold, mineral, royalty, or other
interest with land, mineral leasehold, mineral, royalty, or other
interest of one or more persons for the purpose of developing and
producing oil, gas, or other minerals, and making leases or
assignments granting the right to pool and unitize;
(C) entering into contracts and agreements
concerning the installation and operation of plants or other
facilities for the cycling, repressuring, processing, or other
treating or handling of oil, gas, or other minerals;
(D) conducting or contracting for the conducting
of seismic evaluation operations;
(E) drilling or contracting for the drilling of
wells for oil, gas, or other minerals;
(F) contracting for and making "dry hole" and
"bottom hole" contributions of cash, leasehold interests, or other
interests towards the drilling of wells;
(G) using or contracting for the use of any
method of secondary or tertiary recovery of any mineral, including
the injection of water, gas, air, or other substances;
(H) purchasing oil, gas, or other mineral leases,
leasehold interests, or other interests for any type of
consideration, including farmout agreements requiring the drilling
or reworking of wells or participation therein;
(I) entering into farmout contracts or
agreements committing the principal to assign oil, gas, or other
mineral leases or interests in consideration for the drilling of
wells or other oil, gas, or mineral operations;
(J) negotiating the transfer of and transferring
oil, gas, or other mineral leases or interests for any
consideration, such as retained overriding royalty interests of any
nature, drilling or reworking commitments, or production
interests; and
(K) executing and entering into contracts,
conveyances, and other agreements or transfers considered
necessary or desirable to carry out the powers granted in this
section, whether or not the action is now or subsequently
recognized or considered as a common or proper practice by those
engaged in the business of prospecting for, developing, producing,
processing, transporting, or marketing minerals, including
entering into and executing division orders, oil, gas, or other
mineral sales contracts, exploration agreements, processing
agreements, and other contracts relating to the processing,
handling, treating, transporting, and marketing of oil, gas, or
other mineral production from or accruing to the principal and
receiving and receipting for the proceeds thereof on behalf of the
principal; and
(11) designate the property that constitutes the
principal's homestead.
(b) If a real property transaction requires the agent to
execute an instrument that is to be recorded, then the power of
attorney shall be recorded in the office of the county clerk in
which the real property that is the subject of the transaction is
located.
Sec. 575. TANGIBLE PERSONAL PROPERTY. Unless the power of
attorney otherwise provides, language in a power of attorney
granting general authority with respect to tangible personal
property authorizes the agent to:
(1) demand, buy, receive, accept as a gift or as
security for an extension of credit, or otherwise acquire or reject
ownership or possession of tangible personal property or an
interest in tangible personal property;
(2) sell, exchange, convey with or without covenants,
representations, or warranties, quitclaim, release, surrender,
create a security interest in, grant options concerning, lease,
sublease, or otherwise dispose of tangible personal property or an
interest in tangible personal property;
(3) grant a security interest in tangible personal
property or an interest in tangible personal property as security
to borrow money or pay, renew, or extend the time of payment of a
debt of the principal or a debt guaranteed by the principal;
(4) 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;
(5) manage or conserve tangible personal property or
an interest in tangible personal property on behalf of the
principal, including:
(A) insuring the property or interest against
liability, casualty, or other loss;
(B) obtaining or regaining possession of or
protecting the property or interest, by litigation or otherwise;
(C) paying, assessing, compromising, or
contesting taxes or assessments or applying for and receiving
refunds in connection with taxes or assessments;
(D) moving the property from place to place;
(E) storing the property for hire or on a
gratuitous bailment; and
(F) using and making repairs, alterations, or
improvements to the property; and
(6) change the form of title of an interest in tangible
personal property.
Sec. 576. STOCKS AND BONDS. Unless the power of attorney
otherwise provides, language in a power of attorney granting
general authority with respect to stocks and bonds authorizes the
agent to:
(1) buy, sell, and exchange stocks and bonds;
(2) establish, continue, modify, or terminate an
account with respect to stocks and bonds;
(3) pledge stocks and bonds as security to borrow,
pay, renew, or extend the time of payment of a debt of the
principal;
(4) receive certificates and other evidences of
ownership with respect to stocks and bonds; and
(5) exercise voting rights with respect to stocks and
bonds in person or by proxy, enter into voting trusts, and consent
to limitations on the right to vote.
Sec. 577. COMMODITIES AND OPTIONS. Unless the power of
attorney otherwise provides, language in a power of attorney
granting general authority with respect to commodities and options
authorizes the agent to:
(1) buy, sell, exchange, assign, settle, and exercise
commodity futures contracts and call or put options on stocks or
stock indexes traded on a regulated option exchange; and
(2) establish, continue, modify, or terminate option
accounts.
Sec. 578. BANKS AND OTHER FINANCIAL INSTITUTIONS. Unless
the power of attorney otherwise provides, language in a power of
attorney granting general authority with respect to banks and other
financial institutions authorizes the agent to:
(1) continue, modify, or terminate an account or other
banking arrangement made by the principal or on the principal's
behalf;
(2) establish, modify, or 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) contract for services available from a financial
institution, including renting a safe deposit box or space in a
vault;
(4) withdraw, by check, order, electronic funds
transfer, or otherwise, money or property of the principal
deposited with or left in the custody of a financial institution;
(5) receive statements of account, vouchers, notices,
or similar documents from a financial institution and act with
respect to those documents;
(6) enter a safe deposit box or vault and withdraw from
or add to the contents;
(7) borrow money and pledge as security personal
property of the principal as necessary to borrow money or pay,
renew, or extend the time of payment of a debt of the principal or a
debt guaranteed by the principal;
(8) make, assign, draw, endorse, discount, guarantee,
and negotiate promissory notes, checks, drafts, or 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, and accept a draft drawn by a person
on the principal and pay the draft when due;
(9) receive for the principal and act on a sight draft,
warehouse receipt, or other document of title whether tangible or
electronic, or other negotiable or nonnegotiable instrument;
(10) apply for, receive, and use letters of credit,
credit or debit cards, electronic transaction authorizations, and
traveler's checks from a financial institution and give an
indemnity or other agreement in connection with letters of credit;
and
(11) consent to an extension of the time of payment
with respect to commercial paper or a financial transaction with a
financial institution.
Sec. 579. OPERATION OF ENTITY OR BUSINESS. Subject to the
terms of a document or an agreement governing an entity or an entity
ownership interest, and unless the power of attorney otherwise
provides, language in a power of attorney granting general
authority with respect to operation of an entity or business
authorizes the agent to:
(1) operate, buy, sell, enlarge, reduce, or terminate
an ownership interest;
(2) perform a duty or discharge a liability or
exercise in person or by proxy a right, power, privilege, or option
that the principal has, may have, or claims to have;
(3) enforce the terms of an ownership agreement;
(4) initiate, participate in, submit to alternative
dispute resolution, settle, oppose, or propose or accept a
compromise with respect to litigation to which the principal is a
party because of an ownership interest;
(5) 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 stocks or bonds;
(6) initiate, participate in, submit to alternative
dispute resolution, settle, oppose, or propose or accept a
compromise with respect to litigation concerning stocks or bonds to
which the principal is a party;
(7) with respect to an entity or business owned solely
by the principal:
(A) continue, modify, renegotiate, extend, and
terminate a contract made by the principal or on the principal's
behalf with respect to the entity or business before execution of
the power of attorney;
(B) determine:
(i) the location of the entity's or
business's operation;
(ii) the nature and extent of the business;
(iii) the methods of manufacturing,
selling, merchandising, financing, accounting, and advertising
employed in the entity's or business's operation;
(iv) the amount and types of insurance
carried; and
(v) the method of engaging, compensating,
and dealing with the entity's or business's employees and
accountants, attorneys, or other advisors;
(C) change the name or form of organization under
which the entity or business is operated and enter into an ownership
agreement with other persons to take over all or part of the
operation of the entity or business; and
(D) demand and receive money due or claimed by
the principal or on the principal's behalf in the operation of the
entity or business and control and disburse the money in the
operation of the entity or business;
(8) put additional capital into an entity or business
in which the principal has an interest;
(9) join in a plan of reorganization, consolidation,
conversion, domestication, or merger of the entity or business;
(10) sell or liquidate all or part of an entity or
business;
(11) establish the value of an entity or business
under a buy-out agreement to which the principal is a party;
(12) prepare, sign, file, and deliver reports,
compilations of information, returns, or other papers with respect
to an entity or business and make related payments; and
(13) pay, compromise, or contest taxes, assessments,
fines, or penalties and perform any other act to protect the
principal from illegal or unnecessary taxation, assessments,
fines, or penalties, with respect to an entity or business,
including attempts to recover, in any manner permitted by law,
money paid before or after the execution of the power of attorney.
Sec. 580. INSURANCE AND ANNUITIES. Unless the power of
attorney otherwise provides, language in a power of attorney
granting general authority with respect to insurance and annuities
authorizes the agent to:
(1) continue, pay the premium or make a contribution
on, modify, exchange, rescind, release, or terminate a contract
procured by or on behalf of the principal that 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, or additional insurance
contracts and annuities for the principal or the principal's
spouse, children, and other dependents, and select the amount, type
of insurance or annuity, and method of payment;
(3) pay the premium or make a contribution on, modify,
exchange, rescind, release, or terminate an insurance contract or
annuity procured by the agent;
(4) apply for and receive a loan secured by an
insurance contract or annuity;
(5) surrender and receive the cash surrender value on
an insurance contract or annuity;
(6) exercise an election;
(7) exercise investment powers available under an
insurance contract or annuity;
(8) change the manner of paying premiums on an
insurance contract or annuity;
(9) change or convert the type of insurance or annuity
with respect to which the principal has or claims to have authority
described in this section;
(10) apply for and procure a benefit or assistance
under a statute or regulation to guarantee or pay premiums of an
insurance contract on the life of the principal;
(11) collect, sell, assign, hypothecate, borrow
against, or pledge the principal's interest in an insurance
contract or annuity;
(12) select the form and timing of the payment of
proceeds from an insurance contract or annuity; and
(13) pay, from proceeds or otherwise, compromise or
contest, or apply for refunds in connection with a tax or assessment
levied by a taxing authority with respect to an insurance contract
or annuity or its proceeds or liability accruing because of the tax
or assessment.
Sec. 581. ESTATES, TRUSTS, AND OTHER BENEFICIAL INTERESTS.
(a) In this section, "estate, trust, or other beneficial interest"
means a trust, probate estate, guardianship, conservatorship, life
estate, escrow, or custodianship or a fund from which the principal
is, may become, or claims to be, entitled to a share or payment.
(b) Unless the power of attorney otherwise provides,
language in a power of attorney granting general authority with
respect to estates, trusts, and other beneficial interests
authorizes the agent to:
(1) accept, receive, receipt for, sell, assign,
pledge, or exchange a share in or payment from an estate, trust, or
other beneficial interest;
(2) demand or obtain by litigation or otherwise money
or any other thing of value to which the principal is, may become,
or claims to be entitled because of an estate, trust, or other
beneficial interest;
(3) exercise for the principal's benefit a presently
exercisable general power of appointment held by the principal;
(4) initiate, participate in, submit to alternative
dispute resolution, settle, oppose, or propose or accept a
compromise with respect to litigation to:
(A) ascertain the meaning, validity, or effect of
a deed, will, declaration of trust, or other instrument or
transaction affecting the interest of the principal; or
(B) remove, substitute, or surcharge a
fiduciary;
(5) conserve, invest, disburse, or use anything
received for an authorized purpose;
(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; and
(7) reject, renounce, disclaim, release, or consent to
a reduction in or modification of a share in or payment from an
estate, trust, or other beneficial interest.
Sec. 582. CLAIMS AND LITIGATION. Unless the power of
attorney otherwise provides, language in a power of attorney
granting general authority with respect to claims and litigation
authorizes the agent to:
(1) assert and maintain before a court or
administrative agency a claim, claim for relief, cause of action,
counterclaim, offset, recoupment, or defense, including an action
to:
(A) recover property or another thing of value;
(B) recover damages sustained by the principal;
(C) eliminate or modify tax liability; or
(D) seek an injunction, specific performance, or
other relief;
(2) bring an action to determine an adverse claim or
intervene or otherwise participate in litigation;
(3) seek an attachment, garnishment, 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) make or accept a tender, offer of judgment, or
admission of facts, submit a controversy on an agreed statement of
facts, consent to examination, and bind the principal in
litigation;
(5) submit to alternative dispute resolution, settle,
and propose or accept a compromise;
(6) waive the issuance and service of process on the
principal, accept service of process, appear for the principal,
designate persons on which 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, 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 voluntary or
involuntary bankruptcy or insolvency proceedings concerning the
principal or another person, or with respect to a reorganization,
receivership, or application for the appointment of a receiver or
trustee that affects an interest of the principal in property or
other thing of value;
(8) pay a judgment, award, or order against the
principal or a settlement made in connection with a claim or
litigation; and
(9) receive money or another thing of value paid in
settlement of or as proceeds of a claim or litigation.
Sec. 583. PERSONAL AND FAMILY MAINTENANCE. (a) Unless the
power of attorney otherwise provides, language in a power of
attorney granting general authority 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, and the following individuals, whether living when the
power of attorney is executed or later born:
(A) the principal's children;
(B) other individuals legally entitled to be
supported by the principal; and
(C) the individuals whom the principal has
customarily supported or indicated the intent to support;
(2) make periodic payments of child support and other
family maintenance required by a court or governmental agency or an
agreement to which the principal is a party;
(3) provide living quarters for the individuals
described by Subsection (a)(1) of this section by:
(A) purchase, lease, or other contract; or
(B) paying the operating costs, including
interest, amortization payments, repairs, improvements, and taxes,
for premises owned by the principal or occupied by those
individuals;
(4) provide for the individuals described by
Subsection (a)(1) of this section:
(A) normal domestic help;
(B) usual vacations and travel expenses; and
(C) funds for shelter, clothing, food,
appropriate education, including postsecondary and vocational
education, and other current living costs;
(5) pay expenses for necessary health care and
custodial care on behalf of the individuals described by Subsection
(a)(1) of this section;
(6) act as the principal's personal representative
pursuant to Sections 1171 through 1179, Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. Sections
1320d through 1320d-8), 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;
(7) continue any provision made by the principal for
the individuals described by Subsection (a)(1) of this section for
automobiles or other means of transportation, including
registering, licensing, insuring, and replacing the automobiles or
other means of transportation;
(8) maintain credit and debit accounts for the
convenience of the individuals described by Subsection (a)(1) of
this section and open new accounts; and
(9) continue payments incidental to the membership or
affiliation of the principal in a religious institution, club,
society, order, or other organization or continue contributions to
those organizations.
(b) Authority with respect to personal and family
maintenance is neither dependent on, nor limited by, authority that
an agent may or may not have with respect to gifts under this
chapter.
Sec. 584. BENEFITS FROM GOVERNMENTAL PROGRAMS OR CIVIL OR
MILITARY SERVICE. (a) In this section, "benefits from
governmental programs or civil or military service" means any
benefit, program, or assistance provided under a statute or
regulation, including social security, Medicare, and Medicaid.
(b) Unless the power of attorney otherwise provides,
language in a power of attorney granting general authority with
respect to benefits from governmental programs or civil or military
service authorizes the agent to:
(1) execute vouchers in the principal's name for an
allowance or reimbursement payable by the United States, a foreign
government, or a state or subdivision of a state to the principal,
including an allowance or reimbursement for transportation of the
individuals described by Section 583(a)(1) of this code, and for
shipment of their household effects;
(2) take possession and order the removal and shipment
of the principal's property from a post, warehouse, depot, dock, or
other governmental or private place of storage or safekeeping and
execute and deliver a release, voucher, receipt, bill of lading,
shipping ticket, certificate, or other instrument for that purpose;
(3) enroll in, apply for, select, reject, change,
amend, or discontinue, on the principal's behalf, a benefit or
program;
(4) prepare, file, and maintain a claim of the
principal for a benefit or assistance, financial or otherwise, to
which the principal may be entitled under a statute or regulation;
(5) initiate, participate in, submit to alternative
dispute resolution, settle, oppose, or propose or accept a
compromise with respect to litigation concerning any benefit or
assistance the principal may be entitled to receive under a statute
or regulation; and
(6) receive the financial proceeds of a claim
described in Subsection (b)(4) of this section and conserve,
invest, disburse, or use for a lawful purpose anything so received.
Sec. 585. RETIREMENT PLANS. (a) In this section,
"retirement plan" means a plan or account created by an employer,
the principal, or another individual to provide retirement benefits
or deferred compensation of which the principal is a participant,
beneficiary, or owner, including a plan or account under the
following:
(1) an individual retirement account described by
Section 408, Internal Revenue Code of 1986;
(2) a Roth IRA described by Section 408A, Internal
Revenue Code of 1986;
(3) a deemed IRA described by Section 408(q), Internal
Revenue Code of 1986;
(4) an annuity or mutual fund custodial account
described by Section 403(b), Internal Revenue Code of 1986;
(5) a pension, profit-sharing, stock bonus, or other
retirement plan qualified described by Section 401(a), Internal
Revenue Code of 1986;
(6) a deferred compensation plan described by Section
457(b), Internal Revenue Code of 1986; and
(7) a nonqualified deferred compensation plan
described by Section 409A, Internal Revenue Code of 1986.
(b) Unless the power of attorney otherwise provides,
language in a power of attorney granting general authority with
respect to retirement plans authorizes the agent to:
(1) select the form and timing of payments under a
retirement plan and withdraw benefits from a plan;
(2) make a rollover, including a direct
trustee-to-trustee rollover, of benefits from one retirement plan
to another;
(3) establish a retirement plan in the principal's
name;
(4) make contributions to a retirement plan;
(5) exercise investment powers available under a
retirement plan; and
(6) borrow from, sell assets to, or purchase assets
from a retirement plan.
Sec. 586. TAXES. Unless the power of attorney otherwise
provides, language in a power of attorney granting general
authority with respect to taxes authorizes the agent to:
(1) prepare, sign, and file:
(A) federal, state, local, and foreign income,
gift, payroll, property, Federal Insurance Contributions Act, and
other tax returns;
(B) claims for refunds;
(C) requests for extension of time;
(D) petitions regarding tax matters; and
(E) any other tax-related documents, including:
(i) receipts and offers;
(ii) waivers and consents, including
consents and agreements under Section 2032A, Internal Revenue Code
of 1986;
(iii) closing agreements; and
(iv) any power of attorney required by the
Internal Revenue Service or other taxing authority with respect to
a tax year on which the statute of limitations has not run and 25
years following that tax year;
(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, or other taxing
authority.
Sec. 587. GIFTS. (a) In this section, a gift for the
benefit of a person includes:
(1) a gift to a trust;
(2) an account under the Texas Uniform Transfers to
Minors Act; and
(3) a tuition savings account or prepaid tuition plan
as described by Section 529, Internal Revenue Code of 1986.
(b) Unless the power of attorney otherwise provides,
language in a power of attorney granting general authority with
respect to gifts authorizes the agent to only:
(1) make outright to, or for the benefit of, a person,
a gift of any of the principal's property, including by the exercise
of a presently exercisable general power of appointment held by the
principal, in an amount per donee not to exceed:
(A) the annual dollar limits of the federal gift
tax exclusion under Section 2503(b), Internal Revenue Code of 1986,
without regard to whether the federal gift tax exclusion applies to
the gift; or
(B) if the principal's spouse agrees to consent
to a split gift pursuant to Section 2513, Internal Revenue Code of
1986, twice the annual federal gift tax exclusion limit; and
(2) consent, pursuant to Section 2513, Internal
Revenue Code of 1986, to the splitting of a gift made by the
principal's spouse in an amount per donee not to exceed the
aggregate annual gift tax exclusions for both spouses.
(c) An agent may make a gift of the principal's property
only as the agent determines is consistent with the principal's
objectives if actually known by the agent and, if unknown, as the
agent determines is consistent with 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 taxes, including income, estate,
inheritance, generation-skipping transfer, and gift taxes;
(4) eligibility for a benefit, a program, or
assistance under a statute or regulation; and
(5) the principal's personal history of making or
joining in making gifts.
PART 6. STATUTORY FORM POWER OF ATTORNEY
Sec. 591. STATUTORY FORM POWER OF ATTORNEY. A document
substantially in the following form may be used to create a
statutory form power of attorney that has the meaning and effect
prescribed by this chapter.
TEXAS STATUTORY FORM POWER OF ATTORNEY
IMPORTANT INFORMATION
This power of attorney authorizes another person (your agent)
to make decisions concerning your property for you (the principal).
Your agent will be able to make decisions and act with respect to
your property (including your money) whether or not you are able to
act for yourself. The meaning of authority over subjects listed on
this form is explained in the Power of Attorney Act, Chapter XIIA,
Texas Probate Code.
This power of attorney does not authorize the agent to make
health care decisions for you.
You should select someone you trust to serve as your agent.
Unless you specify otherwise, generally the agent's authority will
continue until you die or revoke the power of attorney or the agent
resigns or is unable to act for you.
Your agent is entitled to reasonable compensation unless you
state otherwise in the Special Instructions.
If your agent is unable or unwilling to act for you, your
power of attorney will end unless you have named a successor agent.
You may also name a second successor agent.
This power of attorney becomes effective immediately unless
you state otherwise in the Special Instructions.
If you have questions about the power of attorney or the
authority you are granting to your agent, you should seek legal
advice before signing this form.
DESIGNATION OF AGENT
I _____________________________________ (Name of Principal)
name the following person as my agent:
Name of Agent: ____________________________________________
Agent's Address: __________________________________________
Agent's Telephone Number: _________________________________
DESIGNATION OF SUCCESSOR AGENT(S) (OPTIONAL)
If my agent is unable or unwilling to act for me, I name as my
successor agent:
Name of Successor Agent: __________________________________
Successor Agent's Address: ________________________________
Successor Agent's Telephone Number: _______________________
If my successor agent is unable or unwilling to act for me, I
name as my second successor agent:
Name of Second Successor Agent: ___________________________
Second Successor Agent's Address: _________________________
Second Successor Agent's Telephone Number: ________________
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
Power of Attorney Act, Chapter XIIA, Texas Probate Code, except the
subjects that I have crossed out below:
(TO WITHHOLD A SUBJECT, YOU MUST CROSS OUT EACH SUBJECT
WITHHELD.)
Real Property
Tangible Personal Property
Stocks and Bonds
Commodities and Options
Banks and Other Financial Institutions
Operation of Entity or Business
Insurance and Annuities
Estates, Trusts, and Other Beneficial Interests
Claims and Litigation
Personal and Family Maintenance
Benefits from Governmental Programs or Civil or Military
Service
Retirement Plans
Taxes
GRANT OF SPECIFIC AUTHORITY (OPTIONAL)
My agent MAY NOT do any of the following specific acts for me UNLESS I have INITIALED the specific authority listed below:
UNLESS I have INITIALED the specific authority listed below:
(CAUTION: Granting any of the following will give your agent the authority to take actions that could significantly reduce your property or change how your property is distributed at your death. INITIAL ONLY the specific authority you WANT to give your agent. If you DO NOT want to grant your agent one or more of the following powers, you may also CROSS OUT such power.)
the authority to take actions that could significantly reduce your
property or change how your property is distributed at your death.
INITIAL ONLY the specific authority you WANT to give your agent. If
you DO NOT want to grant your agent one or more of the following
powers, you may also CROSS OUT such power.)
(__) Create, amend, revoke, or terminate an inter vivos trust
(__) Make a gift, subject to the limitations of Section 587,
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
(__) Waive the principal's right to be a beneficiary of a
joint and survivor annuity, including a survivor benefit under a
retirement plan
SPECIAL INSTRUCTIONS (OPTIONAL)
You may give special instructions on the following lines:
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________
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 on the validity of
this power of attorney or a copy of it unless that person knows it
has terminated or is invalid.
REVOCATION OF PRIOR POWERS OF ATTORNEY
This power of attorney (initial A or B):
____ A. does not revoke any prior power of attorney I have
executed.
____ B. revokes all prior powers of attorney I have executed
except the following:
____________________________________________________.
(If you do not initial A or B, then A shall apply)
SIGNATURE AND ACKNOWLEDGMENT
__________________________________
Your Signature
Date _____________________________
____________________________________________
Your Name Printed
____________________________________________
____________________________________________
Your Address
State of ______________________________
County of _____________________________
This document was acknowledged before me on
_________________________ (Date), by _____________________ (Name
of Principal).
_______________________________
Signature of Notary - State of Texas
(Seal, if any)
My commission expires: _______________________
IMPORTANT INFORMATION FOR AGENT
Agent's Duties
When you accept the authority granted under this power of attorney,
a special legal relationship is created between you and the
principal. This relationship imposes on you legal 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 or, if you do not know the
principal's expectations, act in the principal's best interest;
(2) act in good faith;
(3) do nothing beyond the authority granted in this power of
attorney; and
(4) 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
Termination of Agent's Authority
You must stop acting on behalf of the principal if you learn of any
event that terminates this power of attorney or your authority
under this power of attorney. Events that terminate a power of
attorney or your authority to act under a power of attorney include:
(1) death of the principal;
(2) the principal's revocation of the power of attorney or
your authority;
(3) the occurrence of a termination event stated in the
power of attorney;
(4) the purpose of the power of attorney is fully
accomplished;
(5) if you are married to the principal, a legal action is
filed with a court to end your marriage or declare it void, unless
the Special Instructions in this power of attorney state that such
an action will not terminate your authority; or
(6) the qualification of a permanent guardian of the estate
appointed for the principal.
Liability of Agent
The meaning of the authority granted to you is defined in the Power
of Attorney Act, Chapter XIIA, Texas Probate Code. If you violate
the Power of Attorney Act or act outside the authority granted, you
may be liable for any damages caused by your violation and you may
be subject to criminal prosecution.
If there is anything about this document or your duties that you do
not understand, you should seek legal advice.
Sec. 592. AGENT'S 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
I, ________________________________________________ (Name
of Agent), certify under penalty of perjury that
_________________________________________ (Name of Principal)
granted me authority as an agent or successor agent in a power of
attorney dated ___________________________.
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 the
Power of Attorney and my authority to act under the Power of
Attorney have not terminated;
(2) if the Power of Attorney was drafted to become effective
on the happening of an event or contingency, the event or
contingency has occurred;
(3) if I was named as a successor agent, the prior agent is
no longer able or willing to serve; and
(4) ______________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
__________________________________________ (Insert other relevant
statements)
I understand that if I violate the Power of Attorney Act,
Chapter XIIA, Texas Probate Code, or act outside the authority
granted in the Power of Attorney, I may be liable for any damages
caused by my actions and I may be subject to criminal prosecution.
_______________________________
Agent's Signature
Date __________________________
____________________________________________
Agent's Name Printed
____________________________________________
____________________________________________
Agent's Address
____________________________________________
Agent's Telephone Number
Subscribed and sworn to before me in the State of
________________________________ on ___________________ (Date),
by _______________________________ (Name of Agent).
________________________________
Signature of Notary-State of ____
(Seal, if any)
My commission expires: _______________________
SECTION 2. Section 552.140(c), Government Code, is amended
to read as follows:
(c) On request and the presentation of proper
identification, the following persons may inspect the military
discharge record or obtain from the governmental body free of
charge a copy or certified copy of the record:
(1) the veteran who is the subject of the record;
(2) the legal guardian of the veteran;
(3) the spouse or a child or parent of the veteran or,
if there is no living spouse, child, or parent, the nearest living
relative of the veteran;
(4) the personal representative of the estate of the
veteran;
(5) the person named by the veteran, or by a person
described by Subdivision (2), (3), or (4), in an appropriate power
of attorney executed in accordance with Section 591, Chapter XIIA
[Section 490, Chapter XII], Texas Probate Code;
(6) another governmental body; or
(7) an authorized representative of the funeral home
that assists with the burial of the veteran.
SECTION 3. Section 825.508(b), Government Code, is amended
to read as follows:
(b) The system must honor a power of attorney executed in
accordance with Section 541, Chapter XIIA [Chapter XII, Section
490], Texas Probate Code.
SECTION 4. Section 313.003(a), Health and Safety Code, is
amended to read as follows:
(a) This chapter does not apply to:
(1) a decision to withhold or withdraw life-sustaining
treatment from qualified terminal or irreversible patients under
Subchapter B, Chapter 166;
(2) a health care decision made under a medical power
of attorney under Subchapter D, Chapter 166, or under Chapter XIIA
[XII], Texas Probate Code;
(3) consent to medical treatment of minors under
Chapter 32, Family Code;
(4) consent for emergency care under Chapter 773;
(5) hospital patient transfers under Chapter 241; or
(6) a patient's legal guardian who has the authority to
make a decision regarding the patient's medical treatment.
SECTION 5. Section 32.45(a)(1), Penal Code, is amended to
read as follows:
(1) "Fiduciary" includes:
(A) a trustee, guardian, administrator,
executor, conservator, and receiver;
(B) an attorney in fact or agent appointed under
a durable power of attorney as provided by Chapter XIIA [Chapter
XII], Texas Probate Code;
(C) any other person acting in a fiduciary
capacity, but not a commercial bailee unless the commercial bailee
is a party in a motor fuel sales agreement with a distributor or
supplier, as those terms are defined by Section 153.001, Tax Code;
and
(D) an officer, manager, employee, or agent
carrying on fiduciary functions on behalf of a fiduciary.
SECTION 6. Notwithstanding the transfer of Chapter XII,
Texas Probate Code, to the Estates Code and redesignation as
Sections 481 through 506 of that code effective January 1, 2014, by
Section 4, Chapter 680 (H.B. 2502), Acts of the 81st Legislature,
Regular Session, 2009, Chapter XII, Texas Probate Code, is
repealed.
SECTION 7. The validity of the execution of a power of
attorney before the effective date of this Act is determined
according to the terms of the law of this state as it existed at the
time of the execution, and the former law is continued in effect for
that purpose.
SECTION 8. (a) Except as otherwise provided in this Act,
this Act applies to:
(1) a power of attorney created before, on, or after
the effective date of this Act;
(2) a judicial proceeding concerning a power of
attorney commenced on or after the effective date of this Act; and
(3) a judicial proceeding concerning a power of
attorney commenced before the effective date of this Act.
(b) If the court finds that application of a provision of
this Act would substantially interfere with the effective conduct
of a judicial proceeding concerning a power of attorney commenced
before the effective date of this Act or prejudice the rights of a
party to the proceeding, the provision of this Act does not apply
and the superseded law applies in those circumstances.
(c) An act performed before the effective date of this Act
is not affected by this Act.
SECTION 9. This Act takes effect September 1, 2011.