CHAPTER XII. DURABLE POWER OF ATTORNEY ACT

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PROBATE CODE

CHAPTER XII. DURABLE POWER OF ATTORNEY ACT

Text of effective on January 01, 2014

Text of article effective until January 01, 2014

Sec. 481. SHORT TITLE. This chapter may be cited as the Durable

Power of Attorney Act.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 482. DEFINITION. A "durable power of attorney" means a

written instrument that:

(1) designates another person as attorney in fact or agent;

(2) is signed by an adult principal;

(3) contains the words "This power of attorney is not affected by

subsequent disability or incapacity of the principal," or "This

power of attorney becomes effective on the disability or

incapacity of the principal," or similar words showing the

principal's intent that the authority conferred on the attorney

in fact or agent shall be exercised notwithstanding the

principal's subsequent disability or incapacity; and

(4) is acknowledged by the principal before an officer authorized

to take acknowledgments to deeds of conveyance and to administer

oaths under the laws of this state or any other state.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 483. DURATION. A durable power of attorney does not lapse

because of the passage of time unless the instrument creating the

power of attorney specifically states a time limitation.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 484. EFFECT OF ACTS BY ATTORNEY IN FACT OR AGENT DURING

INCAPACITY OF PRINCIPAL. All acts done by an attorney in fact or

agent pursuant to a durable power of attorney during any period

of disability or incapacity of the principal 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 were not

disabled or incapacitated.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 485. RELATION OF ATTORNEY IN FACT OR AGENT TO

COURT-APPOINTED GUARDIAN OF ESTATE. (a) If, after execution of a

durable power of attorney, a court of the principal's domicile

appoints a permanent guardian of the estate of the principal, the

powers of the attorney in fact or agent terminate on the

qualification of the guardian of the estate, and the attorney in

fact or agent shall deliver to the guardian of the estate all

assets of the estate of the ward in the attorney's or agent's

possession and shall account to the guardian of the estate as the

attorney or agent would to the principal had the principal

terminated his powers.

(b) If, after execution of a durable 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

attorney in fact or agent on the qualification of the temporary

guardian of the estate until the date on which the term of the

temporary guardian expires.

prohibit the application for or issuance of a temporary

restraining order under applicable law.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2001, 77th Leg., ch. 217, Sec. 1, eff.

Sept. 1, 2001.

Text of article effective until January 01, 2014

Sec. 485A. EFFECT OF PRINCIPAL'S DIVORCE OR MARRIAGE ANNULMENT IF

FORMER SPOUSE IS ATTORNEY IN FACT OR AGENT. If, after execution

of a durable power of attorney, the principal is divorced from a

person who has been appointed the principal's attorney in fact or

agent or the principal's marriage to a person who has been

appointed the principal's attorney in fact or agent is annulled,

the powers of the attorney in fact or agent granted to the

principal's former spouse shall terminate on the date on which

the divorce or annulment of marriage is granted by a court,

unless otherwise expressly provided by the durable power of

attorney.

Added by Acts 1997, 75th Leg., ch. 455, Sec. 1, eff. Sept. 1,

1997.

Text of article effective until January 01, 2014

Sec. 486. KNOWLEDGE OF DEATH, GUARDIAN OF ESTATE, REVOCATION,

DIVORCE, OR MARRIAGE ANNULMENT; GOOD-FAITH ACTS. (a) The

revocation by, the death of, or the qualification of a guardian

of the estate of a principal who has executed a durable power of

attorney does not revoke or terminate the agency as to the

attorney in fact, agent, or other person who, without actual

knowledge of the termination of the power by revocation, by the

principal's death, or by the qualification of a guardian of the

estate of the principal, acts in good faith under or in reliance

on the power.

(b) The divorce of a principal from a person who has been

appointed the principal's attorney in fact or agent before the

date on which the divorce is granted or the annulment of the

marriage of a principal and a person who has been appointed the

principal's attorney in fact or agent before the date the

annulment is granted does not revoke or terminate the agency as

to a person other than the principal's former spouse if the

person acts in good faith under or in reliance on the power.

or unenforceable, binds successors in interest of the principal.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 455, Sec. 2, eff.

Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 487. AFFIDAVIT OF LACK OF KNOWLEDGE OR TERMINATION OF POWER;

RECORDING; GOOD-FAITH RELIANCE. (a) As to acts undertaken in

good-faith reliance on the durable power of attorney, an

affidavit executed by the attorney in fact or agent under a

durable power of attorney stating that the attorney in fact or

agent did not have at the time of exercise of the power actual

knowledge of the termination of the power by revocation, by the

principal's death, by the principal's divorce or the annulment of

the marriage of the principal if the attorney in fact or agent

was the principal's spouse, or by the qualification of a guardian

of the estate of the principal is conclusive proof as between the

attorney in fact or agent and a person other than the principal

or the principal's personal representative dealing with the

attorney in fact or agent of the nonrevocation or nontermination

of the power at that time.

(b) As to acts undertaken in good-faith reliance on the durable

power of attorney, an affidavit executed by the attorney in fact

or agent under a durable power of attorney stating that the

principal is disabled or incapacitated, as defined by the power,

is conclusive proof as between the attorney in fact or agent and

a person other than the principal or the principal's personal

representative dealing with the attorney in fact or agent of the

disability or incapacity of the principal at that time.

and delivery of any instrument that is to be recorded, an

affidavit executed under Subsection (a) or (b) of this section,

when authenticated for record, may also be recorded.

(d) This section does not affect any provision in a durable power

of attorney for its termination by expiration of time or

occurrence of an event other than express revocation.

(e) When a durable power of attorney is used, a third party who

relies in good faith on the acts of an attorney in fact or agent

within the scope of the power of attorney is not liable to the

principal.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 455, Sec. 3, eff.

Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 487A. EFFECT OF BANKRUPTCY PROCEEDING. After execution of a

durable power of attorney, the filing of a voluntary or

involuntary petition in bankruptcy in connection with the

principal's debts does not revoke or terminate the agency as to

the principal's attorney in fact or agent. Any act the attorney

in fact or agent may undertake with respect to the principal's

property is subject to the limitations and requirements of the

United States Bankruptcy Code until a final determination is made

in the bankruptcy proceeding.

Added by Acts 2001, 77th Leg., ch. 73, Sec. 1, eff. Sept. 1,

2001.

Text of article effective until January 01, 2014

Sec. 488. REVOCATION OF DURABLE POWER OF ATTORNEY. Unless

otherwise provided by the durable power of attorney, a revocation

of a durable power of attorney is not effective as to a third

party relying on the power of attorney until the third party

receives actual notice of the revocation.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 489. RECORDING DURABLE POWER OF ATTORNEY FOR REAL PROPERTY

TRANSACTIONS. A durable power of attorney for a real property

transaction requiring the execution and delivery of an instrument

that is to be recorded, including a release, assignment,

satisfaction, mortgage, security agreement, deed of trust,

encumbrance, deed of conveyance, oil, gas, or other mineral

lease, memorandum of a lease, lien, or other claim or right to

real property, shall be recorded in the office of the county

clerk of the county in which the property is located.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 489B. DUTY TO INFORM AND ACCOUNT. (a) The attorney in fact

or agent is a fiduciary and has a duty to inform and to account

for actions taken pursuant to the power of attorney.

(b) The attorney in fact or agent shall timely inform the

principal of all actions taken pursuant to the power of attorney.

Failure of the attorney in fact or agent to inform timely, as to

third parties, shall not invalidate any action of the attorney in

fact or agent.

action taken or decision made by the attorney in fact or agent.

(d) The principal may demand an accounting by the attorney in

fact or agent. Unless otherwise directed by the principal, the

accounting shall include:

(1) the property belonging to the principal that has come to the

attorney in fact's or agent's knowledge or into the attorney in

fact's or agent's possession;

(2) all actions taken or decisions made by the attorney in fact

or agent;

(3) a complete account of receipts, disbursements, and other

actions of the attorney in fact or agent, including their source

and nature, with receipts of principal and income shown

separately;

(4) a listing of all property over which the attorney in fact or

agent has exercised control, with an adequate description of each

asset and its current value if known to the attorney in fact or

agent;

(5) the cash balance on hand and the name and location of the

depository where the balance is kept;

(6) all known liabilities; and

(7) such other information and facts known to the attorney in

fact or agent as may be necessary to a full and definite

understanding of the exact condition of the property belonging to

the principal.

(e) Unless directed otherwise by the principal, the attorney in

fact or agent shall also provide to the principal all

documentation regarding the principal's property.

(f) The attorney in fact or agent shall maintain all records

until delivered to the principal, released by the principal, or

discharged by a court.

(g) If the attorney in fact or agent fails or refuses to inform

the principal, provide documentation, or deliver the accounting

within 60 days (or such longer or shorter time that the principal

demands or a court may order), the principal may file suit to

compel the attorney in fact or agent to deliver the accounting,

to deliver the assets, or to terminate the power of attorney.

(h) This section shall not limit the right of the principal to

terminate the power of attorney or to make additional

requirements of or to give additional instructions to the

attorney in fact or agent.

(i) Wherever in this chapter a principal is given an authority to

act, that shall include not only the principal but also any

person designated by the principal, a guardian of the estate of

the principal, or other personal representative of the principal.

(j) The rights set out in this section and chapter are cumulative

of any other rights or remedies the principal may have at common

law or other applicable statutes and not in derogation of those

rights.

Added by Acts 2001, 77th Leg., ch. 1056, Sec. 1, eff. Sept. 1,

2001.

Text of article effective until January 01, 2014

Sec. 490. STATUTORY DURABLE POWER OF ATTORNEY. (a) The following

form is known as a "statutory durable power of attorney." A

person may use a statutory durable power of attorney to grant an

attorney in fact or agent powers with respect to a person's

property and financial matters. A power of attorney in

substantially the following form has the meaning and effect

prescribed by this chapter. The validity of a power of attorney

as meeting the requirements of a statutory durable power of

attorney is not affected by the fact that one or more of the

categories of optional powers listed in the form are struck or

the form includes specific limitations on or additions to the

attorney in fact's or agent's powers.

The following form is not exclusive, and other forms of power of

attorney may be used.

STATUTORY DURABLE POWER OF ATTORNEY

NOTICE: THE POWERS GRANTED BY THIS DOCUMENT ARE BROAD AND

SWEEPING. THEY ARE EXPLAINED IN THE DURABLE POWER OF ATTORNEY

ACT, CHAPTER XII, TEXAS PROBATE CODE. IF YOU HAVE ANY QUESTIONS

ABOUT THESE POWERS, OBTAIN COMPETENT LEGAL ADVICE. THIS DOCUMENT

DOES NOT AUTHORIZE ANYONE TO MAKE MEDICAL AND OTHER HEALTH-CARE

DECISIONS FOR YOU. YOU MAY REVOKE THIS POWER OF ATTORNEY IF YOU

LATER WISH TO DO SO.

I, __________ (insert your name and address), appoint

__________ (insert the name and address of the person appointed)

as my agent (attorney-in-fact) to act for me in any lawful way

with respect to all of the following powers except for a power

that I have crossed out below.

TO WITHHOLD A POWER, YOU MUST CROSS OUT EACH POWER

WITHHELD.

Real property transactions;

Tangible personal property transactions;

Stock and bond transactions;

Commodity and option transactions;

Banking and other financial institution transactions;

Business operating transactions;

Insurance and annuity transactions;

Estate, trust, and other beneficiary transactions;

Claims and litigation;

Personal and family maintenance;

Benefits from social security, Medicare, Medicaid, or other

governmental programs or civil or military service;

Retirement plan transactions;

Tax matters.

IF NO POWER LISTED ABOVE IS CROSSED OUT, THIS DOCUMENT SHALL BE

CONSTRUED AND INTERPRETED AS A GENERAL POWER OF ATTORNEY AND MY

AGENT (ATTORNEY IN FACT) SHALL HAVE THE POWER AND AUTHORITY TO

PERFORM OR UNDERTAKE ANY ACTION I COULD PERFORM OR UNDERTAKE IF I

WERE PERSONALLY PRESENT.

SPECIAL INSTRUCTIONS:

Special instructions applicable to gifts (initial in front of

the following sentence to have it apply):

I grant my agent (attorney in fact) the power to apply my

property to make gifts, except that the amount of a gift to an

individual may not exceed the amount of annual exclusions allowed

from the federal gift tax for the calendar year of the gift.

ON THE FOLLOWING LINES YOU MAY GIVE SPECIAL INSTRUCTIONS

LIMITING OR EXTENDING THE POWERS GRANTED TO YOUR AGENT.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

UNLESS YOU DIRECT OTHERWISE ABOVE, THIS POWER OF ATTORNEY IS

EFFECTIVE IMMEDIATELY AND WILL CONTINUE UNTIL IT IS REVOKED.

CHOOSE ONE OF THE FOLLOWING ALTERNATIVES BY CROSSING OUT THE

ALTERNATIVE NOT CHOSEN:

(A) This power of attorney is not affected by my subsequent

disability or incapacity.

(B) This power of attorney becomes effective upon my

disability or incapacity.

YOU SHOULD CHOOSE ALTERNATIVE (A) IF THIS POWER OF ATTORNEY IS

TO BECOME EFFECTIVE ON THE DATE IT IS EXECUTED.

IF NEITHER (A) NOR (B) IS CROSSED OUT, IT WILL BE ASSUMED THAT

YOU CHOSE ALTERNATIVE (A).

If Alternative (B) is chosen and a definition of my disability

or incapacity is not contained in this power of attorney, I shall

be considered disabled or incapacitated for purposes of this

power of attorney if a physician certifies in writing at a date

later than the date this power of attorney is executed that,

based on the physician's medical examination of me, I am mentally

incapable of managing my financial affairs. I authorize the

physician who examines me for this purpose to disclose my

physical or mental condition to another person for purposes of

this power of attorney. A third party who accepts this power of

attorney is fully protected from any action taken under this

power of attorney that is based on the determination made by a

physician of my disability or incapacity.

I agree that any third party who receives a copy of this

document may act under it. Revocation of the durable power of

attorney is not effective as to a third party until the third

party receives actual notice of the revocation. I agree to

indemnify the third party for any claims that arise against the

third party because of reliance on this power of attorney.

If any agent named by me dies, becomes legally disabled,

resigns, or refuses to act, I name the following (each to act

alone and successively, in the order named) as successor(s) to

that agent: __________.

Signed this ______ day of __________, 19___

___________________________

(your signature)

State of _______________________

County of ______________________

This document was acknowledged before me on ____________(date) by

________________________

(name of principal)

______________________________

(signature of notarial officer)

(Seal, if any, of notary) _____________________________________

(printed name)

My commission expires: _____________

THE ATTORNEY IN FACT OR AGENT, BY ACCEPTING OR ACTING UNDER THE

APPOINTMENT, ASSUMES THE FIDUCIARY AND OTHER LEGAL

RESPONSIBILITIES OF AN AGENT.

(b) A statutory durable power of attorney is legally sufficient

under this chapter if the wording of the form complies

substantially with Subsection (a) of this section, the form is

properly completed, and the signature of the principal is

acknowledged.

1, 1997.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 455, Sec. 4, eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 455, Sec. 7, eff. Sept.

1, 1997.

Text of article effective until January 01, 2014

Sec. 491. CONSTRUCTION OF POWERS GENERALLY. The principal, by

executing a statutory durable power of attorney that confers

authority with respect to any class of transactions, empowers the

attorney in fact or agent for that class of transactions to:

(1) demand, receive, and obtain by litigation, action, or

otherwise any money or other thing of value to which the

principal is, may become, or may claim to be entitled;

(2) conserve, invest, disburse, or use any money or other thing

of value received on behalf of the principal for the purposes

intended;

(3) contract in any manner with any person, on terms agreeable to

the attorney in fact or 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;

(4) execute, acknowledge, seal, and deliver a deed, revocation,

mortgage, lease, notice, check, release, or other instrument the

agent considers desirable to accomplish a purpose of a

transaction;

(5) prosecute, defend, submit to arbitration, settle, and propose

or accept a compromise with respect to a claim existing in favor

of or against the principal or intervene in an action or

litigation relating to the claim;

(6) seek on the principal's behalf the assistance of a court to

carry out an act authorized by the power of attorney;

(7) engage, compensate, and discharge an attorney, accountant,

expert witness, or other assistant;

(8) keep appropriate records of each transaction, including an

accounting of receipts and disbursements;

(9) prepare, execute, and file a record, report, or other

document the attorney in fact or agent considers necessary or

desirable to safeguard or promote the principal's interest under

a statute or governmental regulation;

(10) reimburse the attorney in fact or agent for expenditures

made in exercising the powers granted by the durable power of

attorney; and

(11) in general, do any other lawful act that the principal may

do with respect to a transaction.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 492. CONSTRUCTION OF POWER RELATING TO REAL PROPERTY

TRANSACTIONS. In a statutory durable power of attorney, the

language conferring authority with respect to real property

transactions empowers the attorney in fact or agent without

further reference to a specific description of the real property

to:

(1) accept as a gift or as security for a loan or 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, encumber, partition, consent to

partitioning, subdivide, apply for zoning, rezoning, or other

governmental permits, plat or consent to platting, develop, grant

options concerning, lease or sublet, or otherwise dispose of an

estate or interest in real property or a right incident to real

property;

(3) release, assign, satisfy, and enforce by litigation, action,

or otherwise a mortgage, deed of trust, encumbrance, lien, or

other claim to real property that exists or is claimed to exist;

(4) do any act of management or of conservation with respect to

an interest in real property, or a right incident to real

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

including power to:

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

(B) obtain or regain possession or protect the interest or right

by litigation, action, or otherwise;

and receive refunds in connection with them;

(D) purchase supplies, hire assistance or labor, or make repairs

or alterations in the real property; and

(E) manage and supervise an interest in real property, including

the mineral estate, by, for example, entering into a lease for

oil, gas, and mineral purposes, making contracts for development

of the mineral estate, or making pooling and unitization

agreements;

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

structures or other improvements on real property in which the

principal has or claims to have an estate, 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, receive and hold shares of stock or obligations

received in a plan or reorganization, and act with respect to the

shares or obligations, including:

(A) selling or otherwise disposing of the shares or obligations;

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

with respect to the shares or obligations; and

(7) change the form of title of an interest in or right incident

to real property; and

(8) dedicate easements or other real property in which the

principal has or claims to have an interest to public use, with

or without consideration.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 455, Sec. 5, eff.

Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 493. CONSTRUCTION OF POWER RELATING TO TANGIBLE PERSONAL

PROPERTY TRANSACTIONS. In a statutory durable power of attorney,

the language conferring general authority with respect to

tangible personal property transactions empowers the attorney in

fact or agent to:

(1) accept as a gift or as security for a loan, 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, mortgage, encumber, pledge, hypothecate, create a

security interest in, pawn, grant options concerning, lease or

sublet to others, or otherwise dispose of tangible personal

property or an interest in tangible personal property;

(3) release, assign, satisfy, or enforce by litigation, action,

or otherwise a mortgage, security interest, encumbrance, lien, or

other claim on behalf of the principal, with respect to tangible

personal property or an interest in tangible personal property;

and

(4) do an act of management or conservation with respect to

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, action, or otherwise;

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.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 494. CONSTRUCTION OF POWER RELATING TO STOCK AND BOND

TRANSACTIONS. In a statutory durable power of attorney, the

language conferring authority with respect to stock and bond

transactions empowers the attorney in fact or agent to buy, sell,

and exchange stocks, bonds, mutual funds, and all other types of

securities and financial instruments other than 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.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 495. CONSTRUCTION OF POWER RELATING TO COMMODITY AND OPTION

TRANSACTIONS. In a statutory durable power of attorney, the

language conferring authority with respect to commodity and

option transactions empowers the attorney in fact or 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 options exchange and establish,

continue, modify, or terminate option accounts with a broker.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 496. CONSTRUCTION OF POWER RELATING TO BANKING AND OTHER

FINANCIAL INSTITUTION TRANSACTIONS. In a statutory durable power

of attorney, the language conferring authority with respect to

banking and other financial institution transactions empowers the

attorney in fact or agent to:

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

arrangement made by or on behalf of the principal;

(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 attorney in fact or

agent;

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

(4) contract to procure other services available from a financial

institution as the attorney in fact or 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, or 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 attorney in

fact or agent and pledge as security real or personal property of

the principal necessary 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, bills of exchange, checks, drafts, or

other negotiable or nonnegotiable paper of the principal, or

payable to the principal or the principal's order, to receive the

cash or other proceeds of those transactions, to accept a draft

drawn by a person on the principal, and to pay the principal when

due;

(10) receive for the principal and act on a sight draft,

warehouse receipt, or other negotiable or nonnegotiable

instrument;

(11) apply for and receive letters of credit, credit 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.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 497. CONSTRUCTION OF POWER RELATING TO BUSINESS OPERATION

TRANSACTIONS. In a statutory durable power of attorney, the

language conferring authority with respect to business operating

transactions empowers the attorney in fact or agent to:

(1) operate, buy, sell, enlarge, reduce, or terminate a business

interest;

(2) to the extent that an agent is permitted by law to act for a

principal and subject to the terms of the partnership agreement:

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

power, privilege, or option that the principal has, may have, or

claims to have under a partnership agreement, whether or not the

principal is a general or limited partner;

(B) enforce the terms of a partnership agreement by litigation,

action, or otherwise; and

litigation or an action to which the principal is a party because

of membership in the partnership;

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

action, 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, settle, or compromise a legal proceeding to which

the principal is a party because of a bond, share, or similar

instrument;

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

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

contract made with an individual or a legal entity, firm,

association, or corporation 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, and other agents and employees;

business is operated and enter into a partnership agreement with

other persons or organize a corporation 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 on

the terms that the attorney in fact or 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

that are required by a governmental agency, department, or

instrumentality or that the attorney in fact or agent considers

desirable and make related payments; and

(10) pay, compromise, or contest taxes or assessments and do any

other act that the attorney in fact or 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.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 498. CONSTRUCTION OF POWER RELATING TO INSURANCE

TRANSACTIONS. In a statutory durable power of attorney, the

language conferring authority with respect to insurance and

annuity transactions empowers the attorney in fact or 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 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 contracts of insurance

and annuities for the principal or 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 or modify, rescind, release,

or terminate a contract of insurance or annuity procured by the

attorney in fact or agent;

(4) designate the beneficiary of the contract, except that an

attorney in fact or agent may be named a beneficiary of the

contract or an extension, renewal, or substitute for the contract

only to the extent the attorney in fact or agent was named as a

beneficiary under a contract procured by the principal before

executing the power of attorney;

(5) apply for and receive a loan on the security of the contract

of insurance or annuity;

(6) surrender and receive the cash surrender value;

(7) exercise an election;

(8) change the manner of paying premiums;

(9) change or convert the type of insurance contract or annuity

with respect to which the principal has or claims to have a power

described in this section;

(10) change the beneficiary of a contract of insurance or

annuity, except that the attorney in fact or agent may be

designated a beneficiary only to the extent authorized by

Subdivision (4) of this section;

(11) apply for and procure government aid to guarantee or pay

premiums of a contract of insurance on the life of the principal;

(12) collect, sell, assign, hypothecate, borrow on, or pledge the

interest of the principal in a contract of insurance 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 a contract of insurance or

annuity or its proceeds or liability accruing because of the tax

or assessment.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 499. CONSTRUCTION OF POWER RELATING TO ESTATE, TRUST, AND

OTHER BENEFICIARY TRANSACTIONS. In a statutory durable power of

attorney, the language conferring authority with respect to

estate, trust, and other beneficiary transactions empowers the

attorney in fact or 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, exchange, or consent to a reduction in or

modification of a share in or payment from the fund;

(2) demand or obtain by litigation, action, or otherwise money or

any other thing of value to which the principal is, may become,

or claims to be entitled because of the fund;

(3) initiate, participate in, or oppose a legal or judicial

proceeding 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, or oppose a legal or judicial

proceeding to remove, substitute, or surcharge a fiduciary;

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

authorized purpose; and

(6) transfer all or part of an interest of the principal in real

property, stocks, bonds, accounts with financial institutions,

insurance, and other property to the trustee of a revocable trust

created by the principal as settlor.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 500. CONSTRUCTION OF POWER RELATING TO CLAIMS AND

LITIGATION. In a statutory durable power of attorney, the

language conferring general authority with respect to claims and

litigation empowers the attorney in fact or agent to:

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

a claim, a claim for relief, a counterclaim, or an offset or

defend against an individual, a legal entity, or a government,

including suits 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 an

action or litigation, and act as amicus curiae;

(3) in connection with an action or 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 an action or litigation, perform any

lawful act the principal could perform, 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 of the principal in

litigation;

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

compromise with respect to a claim or litigation;

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

accept service of process, appear for the principal, designate

persons on 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, or 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 proceedings, whether voluntary or involuntary,

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

reorganization proceeding or a receivership or application for

the appointment of a receiver or trustee that affects an interest

of the principal in real or personal property or other thing of

value; and

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

connection with a claim or litigation and receive and conserve

money or other thing of value paid in settlement of or as

proceeds of a claim or litigation.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 501. CONSTRUCTION OF POWER RELATING TO PERSONAL AND FAMILY

MAINTENANCE. In a statutory durable power of attorney, the

language conferring authority with respect to personal and family

maintenance empowers the attorney in fact or agent to:

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

of living of the principal, the principal's spouse and 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 by Subdivision (1) of

this section normal domestic help, usual vacations and travel

expenses, and funds for shelter, clothing, food, appropriate

education, and other current living costs;

(3) pay necessary medical, dental, and surgical care,

hospitalization, and custodial care for the individuals described

by Subdivision (1) of this section;

(4) continue any provision made by the principal, for the

individuals described by Subdivision (1) of this section, for

automobiles or other means of transportation, including

registering, licensing, insuring, and replacing the automobiles

or other means of transportation;

(5) maintain or open charge accounts for the convenience of the

individuals described by Subdivision (1) of this section and open

new accounts the attorney in fact or agent considers desirable to

accomplish a lawful purpose; and

(6) 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.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 502. CONSTRUCTION OF POWER RELATING TO BENEFITS FROM CERTAIN

GOVERNMENTAL PROGRAMS OR CIVIL OR MILITARY SERVICE. In a

statutory durable power of attorney, the language conferring

authority with respect to benefits from social security,

Medicare, Medicaid, or other governmental programs or civil or

military service empowers the attorney in fact or agent to:

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

and reimbursements payable by the United States, a foreign

government, or a state or subdivision of a state to the

principal, including allowances and reimbursements for

transportation of the individuals described by Section 501(1) of

this code, 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, settle, and propose

or accept a compromise with respect to any benefits the principal

may be entitled to receive; and

(5) receive the financial proceeds of a claim of the type

described in this section and conserve, invest, disburse, or use

anything received for a lawful purpose.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 503. CONSTRUCTION OF POWER RELATING TO RETIREMENT PLAN

TRANSACTIONS. (a) In a statutory durable power of attorney, the

language conferring authority with respect to retirement plan

transactions empowers the attorney in fact or agent to do any

lawful act the principal may do with respect to a transaction

relating to a retirement plan, including to:

(1) apply for service or disability retirement benefits;

(2) select payment options under any retirement plan in which the

principal participates, including plans for self-employed

individuals;

(3) designate or change the designation of a beneficiary or

benefits payable by a retirement plan, except that an attorney in

fact or agent may be named a beneficiary only to the extent the

attorney in fact or agent was a named beneficiary under the

retirement plan before the durable power of attorney was

executed;

(4) make voluntary contributions to retirement plans if

authorized by the plan;

(5) exercise the investment powers available under any

self-directed retirement plan;

(6) make "rollovers" of plan benefits into other retirement

plans;

(7) borrow from, sell assets to, and purchase assets from

retirement plans if authorized by the plan;

(8) 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;

(9) receive, endorse, and cash payments from a retirement plan;

(10) waive the right of the principal to receive all or a portion

of benefits payable by a retirement plan; and

(11) request and receive information relating to the principal

from retirement plan records.

(b) In this section, "retirement plan" means:

(1) an employee pension benefit plan as defined by Section 1002,

Employee Retirement Income Security Act of 1974 (ERISA) (29

U.S.C. Section 1002), without regard to the provisions of Section

(2)(B) of that section;

(2) a plan that does not meet the definition of an employee

benefit plan under ERISA because the plan does not cover common

law employees;

(3) a plan that is similar to an employee benefit plan under

ERISA, regardless of whether it is covered by Title I of ERISA,

including a plan that provides death benefits to the beneficiary

of employees; and

(4) an individual retirement account or annuity or a

self-employed pension plan or similar plan or account.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 455, Sec. 6, eff.

Sept. 1, 1997.

Text of article effective until January 01, 2014

Sec. 504. CONSTRUCTION OF POWER RELATING TO TAX MATTERS. In a

statutory durable power of attorney, the language conferring

authority with respect to tax matters empowers the attorney in

fact or 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 Section 2032A, Internal

Revenue Code of 1986 (26 U.S.C. Section 2032A), closing

agreements, and any power of attorney form 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 tax 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 and any other taxing

authority.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 505. EXISTING INTEREST; FOREIGN INTERESTS. The powers

described in Sections 492 through 504 of this code may be

exercised equally with respect to an interest the principal has

at the time the durable power of attorney is executed or acquires

later, whether or not the property is located in this state and

whether or not the powers are exercised or the durable power of

attorney is executed in this state.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

Text of article effective until January 01, 2014

Sec. 506. UNIFORMITY OF APPLICATION AND CONSTRUCTION. This

chapter shall be applied and construed to effect its general

purpose to make uniform the law with respect to the subject of

this chapter among states enacting it.

Added by Acts 1993, 73rd Leg., ch. 49, Sec. 1, eff. Sept. 1,

1993.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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