The following Private Client guidance note Produced in partnership with Alison Cartin of Bryan Cave Leighton Paisner LLP provides comprehensive and up to date legal information covering:
A protector is a person who holds powers under a trust but who is not a trustee. A protector is a person who is independent of the trustees. The protector’s role is usually to monitor, oversee or control the administration of the trust by the trustees. It is common for a settlor to choose to provide for a protector where a third party/institutional trust company is appointed as trustee.
It is not a requirement to have a protector of a trust. The settlor of a trust will need to decide whether or not to provide for a protector.
The power most commonly given to a protector is the power to appoint and remove the trustees of the trust. If there is no protector or no person (who is independent of the trustees) who holds this power, then difficulties can arise if the beneficiaries are unhappy with the trustees and the trustees refuse to retire.
Appointing a protector may also dilute the trustees’ absolute control over the assets placed in trust and allow the settlor to retain a certain amount of control over the assets, either directly (if he himself is the protector) or indirectly (if he appoints a family friend or trusted adviser as the protector).
On the other hand, having a protector
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