Role of a trust protector
A protector of a trust is a vitally important person who ultimately ensures that the trust is managed by the trustees in strict accordance with the trust deed and in compliance with the necessary trust laws. A protector will monitor, supervise and ensure no misuse of the trust occurs under the management of the nominated trustee thus giving the trust settlor peace of mind and confidence in creating a trust.
For more information on offshore trusts and how to set up an offshore trust, view our Offshore Trusts service page.
Trust Protector Responsibilities
A protector of a trust is considered to have a very important job and will in most jurisdictions be required for the set up of offshore trusts. A protector is welcomed by trust settlors who may not have confidence in their nominated trustee to act int heir best interests or in line with the trust declaration.
There are many duties of a protector of an offshore trust. Some of these responsibilities are included below:
- Protector can remove trustees
- appoint trustees where required
- approve the removal of trust beneficiaries or addition of new beneficiaries
- The protector has the power to approve trust distribution of assets
- The protector in some situations has the power to approve investment recommendations
- Power to terminate the trust
- The protector also has the power to appoint new protector of the trust
The purpose of the protector is to monitor the trust management and transactions in such as way as to ensure the smooth, legal and beneficial operation of the trust.
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