How does a protector, protect?

The relationship between the protector of a trust and the trustees has always been a point of contention in offshore trust law. Whether it be the removal of the protector, or the protector seeking to remove the trustees, or an adjudication on the extent and nature of their powers and how those powers should be exercised, or the costs when their decisions are challenged, or they resist their own removal. These issues frequently come before the offshore courts due to the nature of trust litigation in those jurisdictions. However, as offshore trustees are often able (if not obliged) to seek directions from those court behind closed doors, there remains a dearth of authority on these topical issues. Recently, however, there have been two published decisions on the scope of protectors’ powers, one in Bermuda, closely followed by Jersey. Unfortunately for trust practitioners across the common law world, the courts came to different conclusions.