How do I ensure that assets which I settle into a trust will be properly managed by the Trustee?

A properly worded trust deed will set out the powers, duties, and responsibilities of a Trustee, which if not followed will place a Trustee under significant liability to the Settlor and beneficiaries of a trust. Most Trustees have insurance to cover these potential liabilities and some of the established Trustees will have a significant amount of capital at risk to ensure proper performance. The Bank has both insurance and a substantial equity base. In addition the Barbados Trust law places onerous responsibilities on a Trustee of a Barbados International Trust.

Do I lose control over my assets which are settled into a Trust?

Most modern offshore trust deeds are worded so that the Settlor is not able to exercise control over the assets which are settled into a trust. A Protector appointed by the Settlor (as described above) to oversee the actions of a Trustee provides a mechanism for a Settlor to exercise some control. It is generally accepted that Trustees, in managing trust assets, will be guided by a letter of wishes from the Settlor. Most trust deeds also provide for a Trustee to be replaced by a Settlor or Protector, which provides an added measure of control.