Privy Council Clarifies Protector Consent Powers in Trusts
The Privy Council has provided authoritative guidance on the scope of protector consent powers in trust instruments, emphasizing the independent discretion protectors hold when trust documents are silent on the matter.
Case Background
In the case of A v C [2026] UKPC 11, the trust instruments required trustee actions to have the "prior written consent" of the protectors but did not specify how this consent should be exercised.
The Board determined that, in the absence of explicit limitations, protectors possess a broad, independent discretion in granting or withholding consent. This decision rejects the narrower supervisory role previously considered by lower courts.
Implications for Trust Law
This ruling aligns with settlor expectations and underscores the importance of clear drafting in trust instruments. It also affirms that protectors are not merely supervisory but have substantive decision-making roles.
Conclusion
The Privy Council's judgment clarifies the extent of protector powers, providing valuable guidance for trustees, protectors, and settlors in trust administration.