A trust can be designed so that the Settlor retains specified powers or influence, but the extent of those powers requires careful drafting. The Trustee must still be capable of performing the Trustee’s legal role and duties.
Possible mechanisms include reserving specified powers to the Settlor, appointing a Protector whose consent is required for important decisions, or providing a non-binding letter of wishes to guide the Trustee’s exercise of discretion.
ADGM and DIFC do not approach reserved powers in exactly the same way. DIFC has detailed statutory provisions in Article 84 of the DIFC Trust Law expressly permitting specified powers to be reserved or granted. The extent of the reserved powers is quite unique to DIFC.
ADGM relies principally on English trust law as applied in ADGM, supplemented by the ADGM trust framework.
Where retaining control is a central objective, a Foundation may also be worth considering because both ADGM and DIFC Foundation regimes provide a separate legal entity and statutory governance framework facilitating extensive ongoing involvement by the Founder.