Powers of Attorney come with a little vocabulary. Two words do most of the work: principal and agent. Here’s the first one, in plain English.
The definition
The principal is the person who creates the Power of Attorney and grants authority to someone else. It’s their money, their decisions, and their document — everything the agent does is on the principal’s behalf and in the principal’s interest. If your father signs a Power of Attorney naming you to help him, your father is the principal.
Principal and agent, together
The agent (also called the attorney-in-fact) is the person named to act. Principal grants; agent acts. Everything the agent does is measured against one question: is this in the principal’s best interest? That’s the heart of the agent’s fiduciary duty.
What rights does the principal keep?
As long as they have capacity, the principal stays in charge of their own life. Specifically, a principal can generally:
- Revoke the Power of Attorney at any time (how to revoke)
- Direct how the agent acts, or overrule them
- Keep making their own decisions — a Power of Attorney doesn’t take away the principal’s own authority; it adds a helper
A Power of Attorney is a tool the principal controls, not a transfer of their independence.
Why the wording matters
Knowing who’s the principal and who’s the agent keeps the roles — and the duties — clear. When you sign for the principal, you sign as their agent, never as yourself. For the whole role explained simply, see the Power of Attorney Agent’s Guide.
_This article is plain-English education, not legal advice. Power of Attorney law varies by state, and reading it does not create an attorney–client relationship. For guidance on your specific situation, talk with a licensed attorney in your state._