General Provisions

V.S.A. tit. 14, ch. 127, subch. 1

in effect

14 V.S.A. § 4001 Short title

4001. Short title This chapter may be cited as the Vermont Uniform Power of Attorney Act. Added 2023, No. 60, § 1, eff. July 1, 2023.

4002. Definitions As used 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. The term includes an original agent, coagent, successor agent, and a person to which an agent’s authority is delegated. (2) “Durable,” with respect to a power of attorney, means not terminated by the principal’s incapacity or unavailability. (3) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. (4) “Electronic signature” means an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record. (5) “General power of attorney” means a power of attorney that is not limited by its terms to a specified transaction or series of transactions, to a specific purpose, or to a specific asset or set of assets, or a power of attorney that grants an agent the authority to do any one or more of the acts described in subsection 4031(e) of this title. (6) “Good faith” means honesty in fact. (7)(A) “Incapacity” means the inability of an individual to manage property or business affairs because the individual has an impairment in the ability to receive and evaluate information or make or communicate decisions even with the use of technological assistance. (B) “Unavailability” means the inability of an individual to manage property or business affairs because the individual is: (i) missing; (ii) detained, including incarcerated in a penal system; or (iii) outside the United States and unable to return. (8) “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. (9) “Power of attorney” means a writing or other record that grants authority to an agent to act in the place of the principal, whether or not the term power of attorney is used. (10) “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. (11) “Principal” means an individual who grants authority to an agent in a power of attorney. (12) “Property” means anything that may be the subject of ownership, whether real or personal, or legal or equitable, or any interest or right therein. (13) “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. (14) “Sign” means, with present intent to authenticate or adopt a record: (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. (15) “State” means a state of the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. (16) “Stocks and bonds” means stocks, bonds, mutual funds, and all other types of securities and 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. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4003 Applicability

4003. Applicability This chapter applies to all powers of attorney 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 power to make health-care decisions; (3) a proxy or other delegation to exercise voting rights or management rights with respect to an entity; (4) a power created on a form prescribed by a government or governmental subdivision, agency, or instrumentality for a governmental purpose; and (5) a power of reciprocal insurers under 8 V.S.A. § 4838. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4004 Power of attorney is durable

4004. Power of attorney is durable A power of attorney created under this chapter is durable unless it expressly provides that it is terminated by the incapacity or unavailability of the principal. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4005 Execution of power of attorney

4005. Execution of power of attorney A power of attorney shall be 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. A signature on a power of attorney is presumed to be genuine if the principal acknowledges the signature before a notary public or other individual authorized by law to take acknowledgments. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4006 Validity of power of attorney

4006. Validity of power of attorney (a) A power of attorney executed in this State on or after July 1, 2023 is valid if its execution complies with section 4005 of this title. (b) A power of attorney executed in this State before July 1, 2023 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 4007 of this title; or (2) the requirements for a military power of attorney pursuant to 10 U.S.C. § 1044b, as amended. (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. (e) Except as otherwise provided by statute other than this chapter, a power of attorney that complies with this chapter is valid. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4007 Meaning and effect of power of attorney

4007. 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. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4008 Nomination of guardian; relation of agent to court-appointed fiduciary

4008. Nomination of guardian; relation of agent to court-appointed fiduciary (a) In a power of attorney, a principal may nominate a guardian of the principal’s estate or a guardian of the principal’s person for consideration by the court if protective proceedings for the principal’s estate or person are begun after the principal executes the power of attorney. Except for good cause shown or disqualification, the court shall make its appointment in accordance with the principal’s most recent nomination. (b) If, after a principal executes a power of attorney, a court appoints a guardian of the principal’s estate or other fiduciary charged with the management of some or all of the principal’s property, the agent is accountable to the fiduciary as well as to the principal. The power of attorney is not terminated, and the agent’s authority continues unless limited, suspended, or terminated by the court. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4009 When power of attorney effective

4009. When power of attorney effective (a) A power of attorney is effective when executed unless the principal provides in the power of attorney that it becomes effective at a future date or upon the occurrence of a future event or contingency. (b) If a power of attorney becomes effective upon the occurrence of a future event or contingency, the principal, 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 upon the principal’s incapacity or unavailability and the principal has not authorized a person to determine whether the principal is incapacitated or unavailable, or the person authorized is unable or unwilling to make the determination, the power of attorney becomes effective upon a determination in a writing or other record by: (1) a licensed health care professional working within the professional’s scope of practice, including a physician licensed pursuant to 26 V.S.A. chapter 23 or 33 and a psychologist licensed pursuant to 26 V.S.A. chapter 55, that the principal is incapacitated within the meaning of subdivision 4002(7)(A) of this chapter; or (2) an attorney at law, a judge, or an appropriate governmental official that the principal is unavailable within the meaning of 4002(7)(B) of this chapter. (d) A person authorized by the principal in the power of attorney to determine that the principal is incapacitated or unavailable may act as the principal’s personal representative pursuant to the Health Insurance Portability and Accountability Act; Sections 1171 through 1179 of the Social Security Act; 42 U.S.C. § 1320d, as amended; and applicable regulations to obtain access to the principal’s health-care information and communicate with the principal’s health-care provider. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4010 Termination of power of attorney or agent’s authority

4010. 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 or unavailable, 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; or (6) the principal revokes the agent’s authority or the agent dies, becomes incapacitated or unavailable, or resigns, and the power of attorney does not provide for another agent to act under the power of attorney. (b) An agent’s authority terminates when: (1) the principal revokes the authority; (2) the agent dies, becomes incapacitated or unavailable, or resigns; (3) a petition for divorce, annulment, separation, or a decree of nullity is filed with respect to the agent’s marriage to the principal, 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) Incapacity or unavailability of the principal of a power of attorney that is not durable does not revoke or terminate the power of attorney as to an agent or other person that, without actual knowledge of the incapacity or unavailability, 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. (g) The principal of a power of attorney may not revoke the power of attorney if the principal has been determined to be incapacitated. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4011 Co-agents and successor agents

4011. Co-agents and successor agents (a) A principal may designate two or more persons to act as co-agents. Unless the power of attorney otherwise provides, each co-agent may exercise its authority independently. (b) A principal may designate one or more successor agents to act if an agent resigns, dies, becomes incapacitated or unavailable, is not qualified to serve, or declines to serve. A principal may grant authority to designate one or more successor agents to an agent or other person designated by name, office, or function. Unless the power of attorney otherwise provides, a successor agent: (1) has the same authority as that granted to the original agent; and (2) may not act until all predecessor agents have resigned, died, become incapacitated or unavailable, are no longer qualified to serve, or have declined to serve. (c) Except as otherwise provided in the power of attorney and subsection (d) of this section, an agent who does not participate in or conceal a breach of fiduciary duty committed by another agent, including a predecessor agent, is not liable for the actions of the other agent. (d) An agent who has actual knowledge of a breach or imminent breach of fiduciary duty by another agent shall notify the principal and, if the principal is incapacitated or unavailable, take any action reasonably appropriate in the circumstances to safeguard the principal’s best interests. An agent who fails to notify the principal or take action as required by this subsection is liable for the reasonably foreseeable damages that could have been avoided if the agent had notified the principal or taken such action. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4012 Reimbursement and compensation of agent

4012. Reimbursement and compensation of agent Unless the power of attorney otherwise provides, an agent is entitled to reimbursement of expenses reasonably incurred on behalf of the principal and to compensation that is reasonable under the circumstances. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4013 Agent’s acceptance

4013. Agent’s acceptance 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. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4014 Agent’s duties

4014. Agent’s duties (a) Notwithstanding provisions in the power of attorney, an agent who 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 interests; (2) act in good faith; and (3) act only within the scope of authority granted in the power of attorney. (b) Except as otherwise provided in the power of attorney or other provision of this chapter, an agent that has accepted appointment shall have no further obligation to act under the power of attorney. However, with respect to any action taken by the agent under the power of attorney, the agent shall: (1) act loyally for the principal’s benefit; (2) act so as not to create a conflict of interest that impairs the agent’s ability to act impartially in the principal’s best interests; (3) act with the care, competence, and diligence ordinarily exercised by agents in similar circumstances; (4) keep a record of all receipts, disbursements, and transactions made on behalf of the principal; (5) cooperate with a person who has authority to make health-care decisions for the principal to carry out the principal’s reasonable expectations to the extent actually known by the agent and otherwise act in the principal’s best interests; and (6) attempt to preserve the principal’s estate plan, to the extent actually known by the agent, if preserving the plan is consistent with the principal’s best interests based on all relevant factors, including: (A) the value and nature of the principal’s property; (B) the principal’s foreseeable obligations and need for maintenance; (C) minimization of taxes, including income, estate, inheritance, generation-skipping transfer, and gift taxes; and (D) eligibility for a benefit, a program, or assistance under a statute or regulation. (c) An agent who acts in good faith is not liable to any beneficiary of the principal’s estate plan for failure to preserve the plan. (d) An agent who acts with care, competence, and diligence for the best interests of the principal is not liable solely because the agent also benefits from the act or has an individual or conflicting interest in relation to the property or affairs of the principal. (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. (g) An agent who exercises authority to delegate to another person the authority granted by the principal or who engages another person on behalf of the principal is not liable for an act, error of judgment, or default of that person if the agent exercises care, competence, and diligence in selecting and monitoring the person. (h) Except as otherwise provided in the power of attorney, an agent is not required to disclose receipts, disbursements, or transactions conducted on behalf of the principal unless 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, upon the death of the principal, by the personal representative or successor in interest of the principal’s estate. If so requested, within 30 days the agent shall comply with the request or provide a writing or other record substantiating why additional time is needed and shall comply with the request within an additional 30 days. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4015 Exoneration of agent

4015. Exoneration of agent A provision in a power of attorney relieving an agent of liability for breach of duty is binding on the principal and the principal’s successors in interest except to the extent the provision: (1) relieves the agent of liability for breach of duty committed: (A) dishonestly; (B) in bad faith; (C) with reckless indifference to the purposes of the power of attorney; (D) through willful misconduct; (E) through gross negligence; or (F) with actual fraud; or (2) was inserted as a result of an abuse of a confidential or fiduciary relationship with the principal. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4016 Judicial relief

4016. 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 or other fiduciary acting for the principal, including an executor or administrator of the estate of a deceased principal; (3) a person authorized to make health-care decisions for the principal; (4) the principal’s spouse, parent, or descendant; (5) an individual who would qualify as an heir of the principal under the laws of intestacy; (6) a person named as a beneficiary to receive any property, benefit, or contractual right on the principal’s death or as a beneficiary of a trust created by or for the principal who has a financial interest in the principal’s estate; (7) a governmental agency having regulatory authority to protect the welfare of the principal; (8) the principal’s caregiver or another person who demonstrates sufficient interest in the principal’s welfare; and (9) a person asked to accept the power of attorney. (b) Upon 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. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4017 Agent’s liability

4017. Agent’s liability An agent who 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 it would have been had the violation not occurred; (2) reimburse the principal or the principal’s successors in interest for the attorney’s fees and costs paid on the agent’s behalf; (3) reimburse the reasonable attorney’s fees and costs incurred by the principal or the principal’s successor in interest in pursuing rectification of the violation by the agent; and (4) pay such other amounts, damages, costs, or expenses that the court may award. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4018 Agent’s resignation; notice

4018. Agent’s resignation; notice Unless the power of attorney provides a different method for an agent’s resignation, an agent may resign by giving written notice to the principal and, if the principal is incapacitated or unavailable: (1) to the guardian, if one has been appointed for the principal, and a coagent or successor agent; or (2) if there is no person described in subdivision (1) 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. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4019 Acceptance of and reliance upon acknowledged power of attorney

4019. Acceptance of and reliance upon acknowledged power of attorney (a) As used in this section and section 4020 of this title, “acknowledged” means purportedly verified before a notary public or other individual authorized to take acknowledgements. (b) A person who in good faith accepts an acknowledged power of attorney without actual knowledge that the signature is not genuine may rely upon the presumption under section 4005 of this title that the signature is genuine. (c) A person who effects a transaction in reliance upon an acknowledged 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 upon the power of attorney as if the power of attorney were genuine, valid, and still in effect; the agent’s authority were genuine, valid, and still in effect; and the agent had not exceeded and has properly exercised the authority. (d) A person who is asked to accept an acknowledged power of attorney may request and rely upon, without further investigation: (1) an agent’s certification under penalty of perjury of any factual matter concerning the principal, agent, or power of attorney; or (2) an English translation of the power of attorney if the power of attorney contains, in whole or in part, 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. (e) A certification presented pursuant to subsection (d) of this section shall state that: (1) the person presenting themselves as the agent and signing the affidavit or declaration is the person so named in the power of attorney; (2) if the agent is named in the power of attorney as a successor agent, the circumstances or conditions stated in the power of attorney that would cause that person to become the acting agent have occurred; (3) to the best of the agent’s knowledge, the principal is still alive; (4) to the best of the agent’s knowledge, at the time the power of attorney was signed, the principal was competent to execute the document and was not under undue influence to sign the document; (5) all events necessary to making the power of attorney effective have occurred; (6) the agent does not have actual knowledge of the revocation, termination, limitation, or modification of the power of attorney or of the agent’s authority; (7) if the agent was married to or in a state-registered domestic partnership with the principal at the time of execution of the power of attorney, then at the time of signing the affidavit or declaration, the marriage or state-registered domestic partnership of the principal and the agent has not been dissolved or declared invalid, and no action is pending for the dissolution of the marriage or domestic partnership for legal separation; and (8) the agent is acting in good faith pursuant to the authority given under the power of attorney. (f) 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. (g) For purposes of this section and section 4020 of this title, a person who 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. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4020 Liability for refusal to accept acknowledged power of attorney

4020. Liability for refusal to accept acknowledged power of attorney (a) Except as otherwise provided in subsection (b) of this section: (1) a person shall either accept an acknowledged power of attorney or request a certification, a translation, or an opinion of counsel under subsection 4019(d) of this title not later than seven business days after presentation of the power of attorney for acceptance; (2) if a person requests a certification, a translation, or an opinion of counsel under subsection 4019(d) of this title, the person shall accept the power of attorney not later than five business days after receipt of the certification, translation, or opinion of counsel; and (3) a person may not require an additional or different form of power of attorney for authority granted in the power of attorney presented. (b) A person is not required to accept an acknowledged power of attorney if: (1) the person is not otherwise required to engage in a transaction with the principal in the same circumstances; (2) engaging in a transaction with the agent or the principal in the same circumstances would be inconsistent with federal or state law; (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 subsection 4019(d) of this title 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 subsection 4019(d) of this title has been requested or provided; or (6) the person makes, or has actual knowledge that another person has made, a report to the Adult Protective Services program or other appropriate entity within the Department of Disabilities, Aging, and Independent Living or to a law enforcement agency 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. (c) A person who refuses in violation of this section to accept an acknowledged power of attorney is subject to: (1) a court order mandating acceptance of the power of attorney; and (2) liability for reasonable attorney’s fees and costs incurred in any action or proceeding that confirms the validity of the power of attorney or mandates acceptance of the power of attorney. Added 2023, No. 60, § 1, eff. July 1, 2023; amended 2023, No. 161 (Adj. Sess.), § 14, eff. June 6, 2024.

14 V.S.A. § 4021 Principles of law and equity

4021. Principles of law and equity Unless displaced by a provision of this chapter, the principles of law and equity supplement this chapter. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4022 Laws applicable to financial institutions and entities

4022. 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 if inconsistent with this chapter. Added 2023, No. 60, § 1, eff. July 1, 2023.

14 V.S.A. § 4023 Remedies under other law

4023. Remedies under other law The remedies under this chapter are not exclusive and do not abrogate any right or remedy under the law of this State other than this chapter. Added 2023, No. 60, § 1, eff. July 1, 2023.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/14/127Fetched: 10/21/2026