The exact scope and power of a protectorship is determined by the trust deed. When setting up an offshore trust it is best to have as few contacts as possible in the trust deed with the Settlor's or Contributor's home country. In a case where the Protector is deemed to be in control of the trust property, a foreign situs to the protectorship will be advantageous. However, if the powers of a Protector are supervisory in nature and do not constitute either ownership or control of the trust property a Canadian resident may be appointed as Protector. A Canadian Settlor may want to consider appointing multiple Protectors, some resident of Canada and some not.
Corporate Protectors are available.
For instance, Protector Services Inc. was set up by McLean McNally in 1996 to act as a Protector if a Settlor so desires. The advantages of a Corporate Protector incorporated offshore is that it avoids any potential problem with the residency of the Protector as discussed earlier. The disadvantage is that such a Corporate Protector may not be as diligent as a long time trusted financial or legal advisor of the Settlor. Corporate Protectors are well suited to act as Protectors in conjunction with an individual who has a close personal or professional relationship with the Settlor. We suggest using an offshore Corporate Protector along with a Canadian resident to dilute the home country residency of the Protectorship.