Seychelles International Trust
What is a protector?
A protector is not a mandatory party to all trusts, but may be chosen by the settlor. The function of the protector is to supervise the trustee, thus providing additional assurances to the settlor that the trust assets are properly managed. Essentially, a protector is a person whose prior consent is legally required ahead of the trustee taking specified actions. For example, trustees may require permission from the protector before:
- adding or excluding Beneficiaries;
- making new, or changing previous arrangements for payments of trust income;
- adding or revoking Trustee/s.
In extreme circumstances, the protector may even remove or replace the trustee. The function of the protector may be undertaken by the settlor or the beneficiary, although it is usually vested in a trusted friend or advisor of the settlor.
The Seychelles International Trusts Act does not specifically refer to protectors or guardians, but does expressly provide for the establishment of Trusts, which require the trustee to consult or obtain the consent of another person before exercising a particular function. As such, there is no impediment to the appointment of a protector or guardian. However, the appointment terms and the powers of the protector should be explicitly set forth in the trust deed or other appointment instrument in order to maintain the formalities required by the International Trusts Act.