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.