trust deed

In the world of wealth management, the concept of the trust has evolved far beyond its traditional boundaries. Once seen merely as a way to transfer and protect assets, it has now become a sophisticated tool for governance, family continuity, and cross-border planning. Amid this evolution, a new key figure has emerged — the Protector — whose role is to ensure that the trust remains faithful to its original purpose, maintaining the delicate balance between trustees and beneficiaries. Index From supervisor to strategic partner The power of the trust deed The UAE’s new Trust Law: a landmark reform A harmonized yet flexible framework A new standard of fiduciary governance From supervisor to strategic partner In the past, the Trustee stood at the center of the trust structure, managing assets with full autonomy. Today, modern trust law embraces a more collaborative model. The Protector acts not as a constraint, but as a partner in oversight — ensuring accountability, transparency, and alignment with the Beneficiaries’ best interests. This shift has become even more important as Trustees are increasingly represented by corporate entities rather than individuals personally known to the Settlor. In this new landscape, the Protector bridges the human and fiduciary dimensions: understanding not only the legal structure, but also the personal and family values that the trust seeks to protect. The power of the trust deed The scope and authority of the Protector are defined within the Trust deed, the legal document at the heart of every trust. It is here that the Settlor outlines how the guardian will operate — their powers of consent or veto, their right to information, and the standards of fairness and good faith that must guide them. A precisely drafted deed transforms the Protector’s presence from a formal safeguard into a living mechanism of integrity and confidence. The UAE’s new Trust Law: a landmark reform The United Arab Emirates have recently taken a decisive step forward with the Federal Decree-Law No. 31 of 2023, known as the New Trust Law, issued by His Highness Sheikh Mohammed Bin Zayed Al Nahyan. This reform replaces the previous law of 2020, creating a comprehensive framework that strengthens transparency and fiduciary governance throughout the Emirates. Under the new law, every trust must be registered and approved by the competent authority of the relevant Emirate, clearly identifying its parties and purpose. For the first time, the legislation explicitly recognizes the Protector — a figure conceptually similar to the European Protector — an independent overseer entrusted with ensuring balance and fairness in the trustee’s actions. The Protector can be appointed by the Settlor or provided for in the trust deed. Their duties may include monitoring Trustee performance, approving key decisions, or even exercising limited veto powers when necessary. What truly matters, however, is not control for its own sake, but trust through accountability. The Protector embodies this principle — ensuring that wealth is managed in line with the Settlor’s intentions, and that every decision serves the Beneficiaries’ best interests. A harmonized yet flexible framework The UAE’s approach creates a sophisticated dual system: a federal framework that guarantees unity and reliability, combined with the continued flexibility of special jurisdictions such as the Dubai International Financial Centre (DIFC), where trust law follows the common law model. This hybrid structure allows international families and investors to choose the model that best fits their global wealth strategies, with the assurance of solid legal protection. A new standard of fiduciary governance The emergence of the Protector marks a new era in the evolution of Trusts. It represents not bureaucracy, but balance: a safeguard of transparency that strengthens rather than restricts the Trustee’s work. In doing so, it enhances confidence, accountability, and long-term sustainability — all essential elements in modern wealth and succession planning. With the New Trust Law, the UAE now stands among the world’s most advanced and trustworthy jurisdictions for asset protection. It is a sign that the region’s legal landscape is evolving toward global best practices — combining flexibility, innovation, and the timeless value of fiduciary responsibility.   Paolo Gaeta  Chiara Pascale Paolo Gaeta & Associati