If so desired a "protector" may be appointed. Usually a trusted friend or advisor of the settlor, a protector can have a monitoring role in respect of trust administration, often including a power of veto, and the ultimate sanction of replacing the trustee. However, the protector should not be permitted to control the trustee or indeed to usurp the trustee function. Should this occur, the trust may be found to be a sham, with disastrous results. It should be noted that the protector function is likely to call for a fiduciary standard of care. Further, care must be taken that the activities of a protector in a domestic domicile are not such as will suffice to permit a local court to assert jurisdiction over the offshore trust.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought for your specific circumstances.
