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A power of attorney is a legal document that gives one person (the attorney) the right to act on behalf of another (the principal) in certain situations. A trust is a legal arrangement wherein some person (the trustee) is designated to manage the property of another (the grantor or settlor) for the benefit of a third party (the beneficiary).
A Power of Attorney form allows you to appoint another person to act on your behalf should you ever require someone to make short-or long-term decisions for you. On a Power of Attorney form, the person granting authority to another is the Principal.The person who is granted authority is called the Attorney-in-fact or Agent.ou must: 1  do what you know the principal reasonably expects you to do with the principal's property or, if you do not know the principal's expectations, act in the principal's best interest; 2  act in good faith; 3  do nothing beyond the authority granted in this power of attorney; and.