Trusts In 2 Minutes – Protecting Protectors – Corporate/Commercial Law – Isle of Man – Mondaq News Alerts

Isle of Man: Trusts In 2 Minutes – Protecting Protectors

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In the latest in our Trusts in 2 Minutes series, Donna Matthews
looks at protecting protectors.

What is a protector?

  • Holds powers under a trust but is not a trustee.
  • Independent of the trustees.
  • Role: usually to monitor and oversee the administration of the
    trust by the trustees.

What should I consider prior to
appointment?

  • The terms of the trust deed are paramount.
  • Any implied powers and duties.
  • The history and background of the trust.
  • The settlor’s wishes.

Important considerations

  • Remuneration – are you entitled to be paid for your role
    as protector?
  • Indemnification – are you entitled to reimbursement from
    the trust fund?
  • Exoneration – are you exonerated for actions carried out
    in good faith as protector?
  • The number of protectors and working relationship between them
    – e.g. can you act by majority?
  • The mechanisms for retirement and appointment of successor
    protectors.
  • Powers of amendment.

Forearmed is forewarned: take independent legal advice to
understand fully the role and obligations being undertaken.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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