Unlike a company, trusts do not have directors, but have trustees, protectors, and settlors that manage the trust. They take on the same sort of responsibilities as a director does with the management of a corporation.
Trustees
Trustees are expected to manage the assets placed within their trust within the terms of the trust’s original agreement. Trustees can be either private persons or corporate entities. In the Isle of Man, three categories of people or entities can be selected as trustees including:
- Fiduciary service providers licensed by the Isle of Man Financial Services Authority to conduct trust services
- Advocates
- Accountants
Trustees must manage the trust with the best interests in the beneficiaries in mind. Therefore, trustees are required to be both fair and impartial when dealing with beneficiaries. These requirements are outlined in the Trustee Act of 2001.
Protectors
In Isle of Man Trusts, protectors are optional, but often utilised. A protector should help trustees with guidance, and also check in with the beneficiaries and the settlor to let them know the trust is being administered for them with the best intentions in mind. Protectors should be qualified professionals or at least have a general understanding of the trust itself, like the settlor him/herself or a relative.
