Plain-English Glossary
Every term in your Power of Attorney document, defined like a human wrote it.
Power of Attorney
A legal document in which one person (the principal) gives another (the agent) authority to act on their behalf. The document — not the title — defines what the agent can do.
Principal
The person granting the authority. It’s their money, their property, and their wishes that govern everything the agent does.
Agent (attorney-in-fact)
The person authorized to act for the principal. Despite the name, an attorney-in-fact does not need to be a lawyer.
Durable Power of Attorney
A Power of Attorney that keeps working if the principal becomes incapacitated. For most families this durability is the whole point — check your document for it.
Springing Power of Attorney
A Power of Attorney that takes effect only when a condition is met — usually a physician certifying that the principal can no longer manage their affairs.
General Power of Attorney
Grants broad authority over the principal’s financial affairs, as listed in the document.
Limited (special) Power of Attorney
Grants authority for specific tasks only — selling one house, managing one account, one transaction.
Statutory short form
A standardized, fill-in-the-blank Power of Attorney form set out in a state’s statutes. Institutions tend to recognize it readily.
Fiduciary duty
The legal obligation an agent takes on: act in the principal’s best interest, follow the document, keep records, keep money separate, and never self-deal.
Incapacity
The inability to manage one’s own affairs — the situation a durable Power of Attorney is designed to handle. How it’s determined is often defined in the document.
Successor agent
The named backup who serves if the first agent can’t or won’t act.
Co-agents
Two or more agents named together. The document controls whether they must act jointly or may act independently.
Revocation
The principal’s cancellation of the Power of Attorney, available while they have capacity. Institutions that relied on the Power of Attorney should be notified in writing.
Termination
When a Power of Attorney stops working: the principal’s death, revocation, an end date in the document, or sometimes court action.
Self-dealing
An agent using their authority for personal benefit — borrowing the principal’s money, gifting themselves property. Prohibited unless the document expressly allows it.
Commingling
Mixing the principal’s money with the agent’s own. A cardinal recordkeeping sin — keep accounts separate, always.
Accounting
A record of everything the agent has done with the principal’s assets. Agents can be required to provide one — keep your log and receipts current.
Gifting power
Authority to give away the principal’s assets. Commonly valid only if expressly granted, often with limits.
Beneficiary designation
The named recipient on accounts like life insurance or retirement plans. Changing one is a major act that generally requires express authority.
Healthcare directive
A separate document for medical decisions and end-of-life wishes. A financial Power of Attorney does not cover these.
Guardianship / conservatorship
Court-appointed authority over a person or their estate — the slower, costlier, public process families often avoid by signing a Power of Attorney in time.
Notarization
A notary public verifying the signer’s identity and signature. Many states require it for a Power of Attorney to be valid or recordable.
Certified copy
A copy of the Power of Attorney verified as true. Some institutions accept one in place of the original.
Principal’s wishes
The standard that guides every decision: what the principal wants or would have wanted — not what the agent would choose for themselves.
Definitions are general education, not legal advice; your state’s law and your document control.