Protecting A Trust

In essence the appointment of a protector provides a means of monitoring the actions of a trustee and checking that appropriate action is taken to preserve the trust fund. In order to carry out such functions, protectors may commonly be given "positive" powers such as the power to appoint and remove trustees and "negative" powers such as the right to withhold consent to capital distributions to beneficiaries. The role of a protector can, therefore, be a significant one in the context of the administration of a trust.

Protectors may be appointed to act in a fiduciary or non-fiduciary capacity. Where the settlor's intention in this regard is not clear, one will need to look at the nature of the particular powers given. As a rule of thumb, protectors will commonly have fiduciary obligations even if this is not expressly stated in the trust documentation. This is not always the case, however, and where, for example, the protector is also a beneficiary that expectation