Trustee indemnities and exclusion clauses: whether and when to
indemnify a trust protector facing the claim in role of
protector.
A trust protector is not a statutory role but one created by the
documents creating the trust, and these set out the role the
protector is to play in the running of the trust and his powers.
The principle is that the protector oversees the management of the
trust and ensures that the settlor's wishes are adhered to. The
powers are often extensive, including the removal and appointment
of trustees, moving the administrative jurisdiction of the trust,
alterations to classes that may benefit under discretionary trusts
and the distribution of assets to beneficiaries. Frequently the
trust protector is a professional advisor to the settlor. This was
the case in a recent application for directions in the Isle of Man
Court, which was asked to look at the issue of paying a trust
protector's costs in defending proceedings brought by the SEC
in
