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POA & Guardianship

Principal

Also known as: Donor, Grantor

The person who makes a Power of Attorney and appoints someone else to act on their behalf.

What it means

The principal is the maker of a Power of Attorney — the person whose affairs are being managed. To make a valid appointment, the principal must have legal capacity to understand what they are signing. The principal can place conditions or limits on what the attorney may do, and can revoke the document at any time while they still have capacity. In some states the principal is instead called the "donor" or "grantor".

How it's used

As principal you decide who to appoint, when their power begins, and any limits — for example, that property cannot be sold without a doctor's certificate of incapacity. Example: As principal, Robert specified that his attorney could only access his investment account once a geriatrician confirmed he had lost capacity. Once capacity is lost the principal can no longer change or cancel the appointment, which is why getting the document right early matters.

This page is general information about Australian estate-planning terms, not legal advice. See our Legal Disclaimer.

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