Q: Who or what is a “Trust Protector”?
A: One or more people appointed to exercise certain trust powers without being the trustee.
A trust protector is not the settlor, beneficiary, or trustee. A Trust Protector can have the authority to perform a variety of acts, among which are:
- Appointing, or removing a trustee;
- Making investment decisions or appointing a new investment manager;
- Change how distributions are made; and
- In some situations, modify or terminate a trust.
The powers and limitations of a Trust Protector should be clearly defined within the trust documents. Care should be given not to make the Trust Protector a de facto co-trustee with all the fiduciary duty baggage. (At the preference of the grantor of the trust, the Trust Protector can have fiduciary obligations to the beneficiaries.).
In its simplest form, the Trust Protector is somebody who can watch over the Trustee and terminate the Trustee for any misconduct or failures.
Read the Blog Posting dated mm/dd/yyy titled, “Consider a Trust Protector” by clicking here.