What is a trust protector?

A trust protector is an individual or entity appointed to oversee and monitor a trust to ensure that it is being managed according to the intentions of the grantor or settlor. The primary role of a trust protector is to safeguard the interests of the beneficiaries and ensure that the trust is not being mismanaged or abused by the trustee.

Trust protectors are typically given broad powers to intervene in the administration of the trust if necessary, such as the ability to remove or replace a trustee, modify the terms of the trust, or terminate the trust altogether. They may also have the authority to resolve disputes among beneficiaries or between the trustee and beneficiaries.

It is important to choose a trust protector carefully, as they play a crucial role in the ongoing management and protection of the trust assets. Trust protectors are commonly used in offshore trusts and trusts with complex or unconventional structures. It is advisable to seek advice from legal and financial professionals when establishing a trust and appointing a trust protector.