Who are the parties to a trust?

Settlor

The Settlor creates the trust and contributes or identifies the property to be held on trust.
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Trustee

The Trustee is the legal owner of the trust property and is responsible for administering it in accordance with the trust terms and applicable law. A Trustee may be an individual or a corporate person, subject to any regulatory requirements applying to professional trustee services (as is the case in ADGM and DIFC).
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A Trustee is not simply a nominee owner. By accepting the office of Trustee, the Trustee assumes legal and fiduciary duties in relation to the trust and its property. Although the precise duties depend on the governing law and trust deed, they commonly include duties to act in good faith and for proper purposes, avoid unauthorised conflicts and profits, safeguard trust assets, keep appropriate records, exercise appropriate care and skill and administer the trust in accordance with its terms.

​Beneficiaries

Beneficiaries are the persons who may benefit from the trust. Their rights depend on the trust terms. Some trusts provide fixed interests; others give the Trustee discretion over whether, when and how much to distribute.

​Protector

A Protector is a person appointed under the trust deed to supervise or restrict specified Trustee powers. A Protector is not required for every trust, but the role can provide an additional layer of oversight.

Depending on the trust deed, a Protector may be able to

The Protector’s role should be carefully calibrated. Giving a Protector extensive powers can alter the balance of control within the structure and may have legal or tax consequences.
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​Enforcer

An Enforcer is relevant to a non-charitable purpose trust. Because there may be no Beneficiary able to enforce the trust, the Enforcer is responsible for enforcing its stated purposes. Both ADGM and DIFC frameworks recognise non-charitable purpose trusts subject to their respective requirements.