Role Of The Protector – From A Guernsey Perspective

Introduction

Settlors may wish to establish a trust for any number of reasons, including asset protection, estate planning, tax mitigation or to circumvent forced heirship regimes. It may be that trusts are not recognised in the settlor's home jurisdiction and consequently he is advised to set up a trust in an unfamiliar geographical territory and to transfer the ownership of his property to relatively remote trustees with whom he has no prior relationship.

A settlor may be reluctant to make an irrevocable gift of his (often very substantial) assets to trustees who are unknown to him, especially where those trustees have broad discretionary powers and are free to ignore completely any request made by the settlor by way of letter of wishes or otherwise.