Amicorp is in a unique position to offer professional Protector Services to both Trusts and Foundations due to its global position as well as being licensed in many different jurisdictions of choice.
With the considerable power that trustees of Trusts and Foundations have through their council or boards, Protectors are a way to give settlors and founders greater peace of mind and security when it comes to the operations of these structures, whether they are alive, incapacitated, or have passed away.
Protector's Role
The terms of the Trust instrument will detail the rights and responsibilities of the Protector, which could be a natural person, an entity, or a committee. Certain jurisdictions also have provisions in their laws that specifically deal with the role of the Protector. Therefore, the Trust instrument and applicable law should be well-known and considered when acting in this capacity.
Similarly, with Foundations, the applicable Foundation Law, charter, and by-laws (Governing Documents) must also be carefully reviewed where protectors are allowed. Essentially, the role is to oversee the Foundation Council and have certain express powers included in the Governing Documents.
The powers of the Protector can be broad or narrow depending on the circumstances of each settlor or founder. Notably, from a Trust perspective, as the Protector only has powers vested in it, rather than any Trust property, it is not a trustee. Still, care needs to be taken when preparing the relevant documents.
Some examples of powers given to a protector are as follows (not exhaustive, and there can be many combinations and variations):
- Powers of consent before the trustees/council can exercise certain powers, e.g., distributions to beneficiaries
- Monitor and agree on the fees of the trustees or councilors
- Add or remove beneficiaries
- Amend the terms of the Trust instrument
- Remove and appoint trustees or councilors
- Change the governing law and forum of administration
How can Amicorp help?
We provide professional Corporate Protector Services across different locations, working closely with settlors/ founders and other related parties to ensure that the Trust or Foundation operates efficiently and as intended. Professional Corporate Protectors can also mitigate any continuity and succession concerns, given they do not have life expectancy restrictions.
In recent years, we have seen a reduction in personal Protectors due to the impact of international reporting, including CRS. Due to information exchanges, personal Protectors can often come under heavy scrutiny from their domestic tax authorities. They are effectively treated as having an interest in the assets when they have none. The introduction of a professional Corporate Protector will alleviate disruptive issues.
We offer Corporate Protector Services out of these jurisdictions: Barbados, BVI, Cayman Islands, India, Malta, Mauritius, New Zealand, Singapore, South Dakota, and Switzerland.
If you would like to find out more about our Corporate Protector services, please contact the team here.
