Trust Governance Risk Indicators

Excessive concentration of authority

Decision-making powers are overly concentrated in one individual or body, limiting trustee independence.

Unclear protector mandate

The protector’s powers are vaguely defined, creating ambiguity in governance responsibilities.

Conflicts between trustee and protector

Structural conflicts arise where the protector has financial or advisory relationships with beneficiaries or asset managers.

Absence of governance documentation

Decisions and approvals are not properly recorded, weakening the audit trail of the trust.

Lack of succession planning

Key governance roles such as protector or trustee lack clearly defined succession mechanisms.