Litigation Judgment Summary - Protectors: role and duties

14 May 2013

In the Matter of the Representation of C, D, E and F and In the Matter of the A and B Trusts [2012] JRC 169A, in a judgment released at the end of April, the Royal Court of Jersey has provided welcome guidance as to the scope of the duties of a trust protector and the circumstances under which they may be removed by the court.

In this case it was held that the established law in relation to the grounds for removal of a trustee was equally applicable to the removal of a protector. Whilst accepting that the court's jurisdiction to remove a protector should not be exercised lightly, the Royal Court decided to remove the protector of two discretionary trusts in circumstances where his fundamental misunderstanding of his role, as the 'living guardian and enforcer of the settlor's wishes' had contributed to a complete breakdown in relations between he and the majority of the beneficiaries and was preventing effective administration of the trusts.

This case serves as a warning to all trust protectors to ensure that they understand the scope of their role and responsibilities.

For further information, please contact David Cadin.