Attorney Grants

Trusts Discussion
1

A question that is (mostly) from curiosity: what is the relationship between (a) a person who takes out a grant as attorney for the use and benefit of a donor and (b) the donor?

Is the attorney a fully fledged independent PR with full personal liability, subject only to their appointment being revoked by the donor? Or are they agents of some kind who should act on the instructions of the donor? Or a mix of the two?

I imagine an attorney usually follows the donor’s wishes in practice (because why wouldn’t they) but I could not find much of anything in the usual sources describing the arrangement in anything other than perfunctory terms.

2

The law of agency applies.

In the absence of any agreement between the donor and attorney to the contrary, I believe the attorney is not independent of their principal and would need to seek instructions for every action (or inaction) they undertake.

Where a professional is appointed, there will usually be some form of agreement whereby the attorney has the lead role, reporting back to their principal as required.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

3

Thanks Paul.
Regards
Andrew