Trust Protector

Definition

A Trust Protector is a person or entity named in a trust deed to oversee the trustees and ensure the trust is administered according to the settlor’s wishes. The role is especially common in discretionary trusts, offshore trusts, and high-value estate planning structures.

Why it matters

While trustees have legal responsibility for managing trust assets, a trust protector acts as a check and balance - able to intervene if trustees act contrary to the settlor’s intentions. In some jurisdictions, a protector’s powers may be extensive; in others, they are more limited and advisory.

In the UK, the protector’s powers and duties must be clearly set out in the trust instrument, as they are not automatically defined by statute.

How a trust protector role works

1. Appointment – Named in the trust deed, often at trust creation but can be added later.
2. Scope of authority – May include power to approve or veto trustee decisions, appoint or remove trustees, or amend trust terms in limited circumstances.
3. Oversight – Reviews trustee actions, decisions, and distributions to ensure compliance with the settlor’s intent.
4. Termination – Role may end on a specific event, such as the settlor’s death or the winding-up of the trust.

Examples and use cases

• Family trusts – Protecting family interests across generations.
• Offshore asset protection trusts – Adding oversight for settlors in another jurisdiction.
• Charitable trusts – Ensuring donations are applied according to charitable purposes.
• Complex estate plans – Safeguarding beneficiaries in cases with multiple trustees or unusual asset classes.

Mini-FAQ

Q: Can a trust protector override the trustee?
A: Only if the trust deed grants them that authority. In many UK trusts, the protector’s role is supervisory rather than executive.

Q: Who can be a trust protector?
A: Anyone the settlor trusts - often a family adviser, lawyer, accountant, or corporate service provider.