Guidance To Trustees In Gibraltar

Letter of Wishes

A Letter of Wishes is not legally binding on the trustee although the trustee will normally have regard to it when considering the exercise of discretionary powers. This letter sets out how the settlor intends that the trustee deal with the trust fund in the future and the letter may always be changed by the settlor as circumstances determine. Whilst the decisions on investment policy are a matter for the trustee, the settlor and the beneficiaries will usually be consulted in order to determine an appropriate investment strategy.

Use of a protector

When the settlor wishes to create a discretionary trust but also wishes the trustee to receive more specific guidance than is given in the Letter of Wishes, it is possible to introduce a protector. The protector's role is usually negative in that he can either prevent the trustee from exercising certain discretions or require to be consulted prior to decisions being taken. He cannot, however, compel the trustee to