Protector

A person or body that supervises the trustee of a trust or the board of a foundation and holds certain consent rights.

In practice

A protector almost always has to be recorded when the beneficial owners are identified, because consent or removal rights give them influence over the trust or foundation. In practice, the specific powers are taken from the trust deed or articles and recorded, together with succession rules for when the protector steps down. When the protector changes, banks, registers and tax advisers must be informed; the family office keeps the role with its period of validity, so that the history remains traceable.

Distinctions and common mistakes

The protector does not manage the assets; the trustee or foundation board remains responsible. A common mistake is to appoint a family adviser as protector without clarifying conflicts of interest and succession, so that the role is vacant when it is needed.

Related terms

Trust

A legal relationship under common law in which a settlor transfers assets to a trustee, who manages them for the benefit of beneficiaries.

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• KYC for trusts: which documents are requiredWhich documents banks and family offices require for a trust: trust deed, letter of wishes, information on settlor, trustee, protector and beneficiaries.
• The Liechtenstein trust (Treuhänderschaft)How the Liechtenstein trust works under the Persons and Companies Act and how it differs from the trust enterprise and the foundation.
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• Swiss Forms T and S: trusts and foundations at the bankWhat Swiss banks record on Forms T and S: settlor, founder, beneficiaries, protector, revocability – and the typical pitfalls for family offices.
• VwbP: the register of beneficial owners in LiechtensteinWho is entered in Liechtenstein's register of beneficial owners (VwbP), who reports, who has access and what applies when information diverges.
• The Due Diligence Act (SPG) in LiechtensteinWhat Liechtenstein's Due Diligence Act requires: identification, beneficial owners, business profile, monitoring and reporting suspicions to the FIU.