Protectors in Trusts
The Benefits, Risks and Responsibilities
22 August 2025
When setting up a family trust, one of the most important decisions is who to appoint as the trustee. The original trustee(s) is usually someone known to the settlor, trusted to act with integrity, ability, and care in managing assets for the benefit of the beneficiaries.
Over time, the relationship between settlors, trustees and beneficiaries can strengthen. However, when a new trustee is appointed, tensions may arise. In these situations, having a protector of the trust, an individual or professional with oversight powers, can help safeguard the interests of all parties.
What is a Protector in a Trust?
A trust protector is an individual or company appointed under the trust deed to exercise certain powers over the trustee(s) and in some cases, the trust itself. Common powers include:
The right to remove or appoint trustees
Oversight of trustee decisions, such as investment advisers or discretionary distributions
Ensuring the trustee administers the trust in line with the deed and settlor’s wishes
Although a protector has influence, they are not trustees and do not own trust property. Their role is fiduciary in nature and designed to provide an additional layer of accountability.
Why Appoint a Protector?
Where a trust deed does not provide for one, we often recommend amending the deed to allow for such an appointment.
The benefits of appointing a protector include:
Acting as an independent intermediary between trustees and beneficiaries
Resolving disputes or misunderstandings
Safeguarding against poor trustee decisions
Ensuring the trustee remains aligned with the settlor’s wishes
Who Can Act as a Protector?
A protector is usually someone the settlor and their family trust implicitly. Common appointments include:
Family friends
Relatives
Accountants
Advocates or lawyers
Licensed trust and corporate service providers
While lay protectors are still common, we recommend appointing a professional protector. Professionals usually have greater experience, understand the complexities of trust administration and are more effective in holding trustees to account.
Typical Powers of a Trust Protector
The powers of a protector vary depending on the trust deed. They may include:
Monitoring trustee fees
Requiring financial accounts or audits
Approving or vetoing discretionary distributions to beneficiaries
Blocking changes to the administrative terms of the trust
Approving or vetoing the sale of trust assets
Adding or removing beneficiaries
Amending clauses in the trust deed
Transferring trust administration to another jurisdiction
The more powers a protector holds, the more their role begins to resemble that of a trustee. In rare cases, courts may even treat a protector as a “trustee de son tort” (a de facto trustee), leaving them personally liable for losses.
Remuneration and Accountability
Professional protectors are usually entitled to remuneration for their services, as well as the ability to seek legal advice when necessary. However, they can still be held to account for breaches of fiduciary duty.
If a protector acts improperly or in conflict of interest, trustees or beneficiaries may apply to the court to hold them liable.
Final Thoughts
A trust protector can play a vital role in maintaining balance and accountability in trust structures. While not every trust requires one, we believe the option should always be available. Appointing a professional protector often provides the experience, independence and strength needed to safeguard beneficiaries’ interests and ensure trustees act responsibly.