The Protector’s Right To Indemnity

When can a Protector expect to be indemnified from trust property for the costs of acting in the role? And what should a trustee do when faced with a demand by a Protector for payment from the trust? Both the Isle of Man and Jersey courts have recently considered the office of Protector, and the Protector's right to indemnity. They provide an interesting contrast to one another and add to the growing understanding of the position of a Protector.

IFG International Trust Company Limited and others v French (2012) CHP 2012/0048

This Manx case sprang from the USA Securities and Exchange Commission (SEC)'s investigation into the affairs of two brothers ("the brothers"), who had settled trusts in the Isle of Man and engaged Manx trustees. F, an individual, had been a protector for the trusts. He became embroiled in the SEC litigation and claimed that the trusts should indemnify him for the costs of his defence. The trustees asked the court for directions as to their