Trusts In 2 Minutes – Protecting Protectors

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In the latest in our Trusts in 2 Minutes series, Donna Matthews looks at protecting protectors.
Isle of Man Corporate/Commercial Law

In the latest in our Trusts in 2 Minutes series, Donna Matthews looks at protecting protectors.

What is a protector?

  • Holds powers under a trust but is not a trustee.
  • Independent of the trustees.
  • Role: usually to monitor and oversee the administration of the trust by the trustees.

What should I consider prior to appointment?

  • The terms of the trust deed are paramount.
  • Any implied powers and duties.
  • The history and background of the trust.
  • The settlor's wishes.

Important considerations

  • Remuneration – are you entitled to be paid for your role as protector?
  • Indemnification – are you entitled to reimbursement from the trust fund?
  • Exoneration – are you exonerated for actions carried out in good faith as protector?
  • The number of protectors and working relationship between them – e.g. can you act by majority?
  • The mechanisms for retirement and appointment of successor protectors.
  • Powers of amendment.

Forearmed is forewarned: take independent legal advice to understand fully the role and obligations being undertaken.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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