What is a trust protector
The main parties to a trust include the settlor, beneficiaries, trustee and protector. The protector of a trust is an important individual and aims to supervise and monitor the management of the trust and administration of the trustee in to ensure accordance with the necessary laws and trust deed. For a trust to be operational and managed effectively you must have a protector to look after the trust.
For more information on the role of a protector and all trust parties, please view our Trust Parties section.
Trust Protector explained
A trust protector is a person appointed to monitor, direct or restrain the nominated trustee/trustees of a trust with respect to how the trustee administers the trust. A protector was first required due to the concerns of trust settlors having their asset placed in trusts offshore and the purpose of the protector was to give the settlor peace of mind that their assets were safe and trust was managed how they stipulated in the trust deed.
Protectors have now become a standard person, party to the complete trust set up and management. Most offshore jurisdictions will only allow for a trust to be established where a protector is also appointed.
A trust protect enables the following beneficial factors to be achieved:
- Protector enables higher level of flexibility in changes to the trust
- The Protector gives the settlor peace of mind that the nominated trustee is acting with due diligence and good will
- A protector can also ensure the trustee acts in the best wishes of the settlor
- The protector can act as a point of contact for the settlor and can also withhold certain powers from the nominated trustee as requested by the settlor.
A protector ultimately ensures the trust deed or trust declaration as it is otherwise referred to, is enforced as the settlor wishes and will also ensure the trustee acts in the best wishes of the settlor and for the benefit of the trust and the beneficiaries.
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