Trust Protector

Wealth owners (grantor) work closely with their advisors and attorneys to carefully create trusts for to distribute assets to fulfill various trust directives, as well identify trust beneficiaries and council trustees to manage the trusts over time. A common addition to the will or trust, is to also identify a third-party individual(s) as a trust protector to oversee the trustee and to accommodate changing circumstances while ensuring that the various trust purposes are fulfilled.   

The trust protector executes numerous duties, including administrative, that are not reserved for the trustee, outside counsel, the grantor, or the beneficiaries. There are also areas that do not fall into the jurisdiction of the trustee, such as changing the legal situs, governing provisions, or beneficiaries of the trust. These are areas where the trust protector is most helpful including: 

• Arbitrate all disputes within the trust 
• Modify the trust agreement, by correcting mistakes, remove ambiguity, and to take advantage of tax laws 
• Convey the terms of the trust to the trustee and beneficiaries when needed 
• Add or remove beneficiaries 
• Alter the beneficiaries’ interest in the trust 
• Terminate a trust Remove or replace a trustee   
• Alter the distributions in the trust 
• Alter the beneficiaries’ power of appointment  
• Interpret the rights of the beneficiaries 
• Approve the trustee’s compensation

It is most beneficial to select a trust protector to ensure that the financial legacy of the grantor is adhered to throughout the life of the will.