Authored by Haley Price
Trust protectors play a key role in the administration and maintenance of trusts. They provide greater flexibility and a layer of oversight that not only enhances the longevity and effectiveness of trusts, but also ensures that the grantors’ wishes are honored over time.
Trust protectors are appointed to oversee the trustee’s actions, providing an additional layer of oversight against potential conflicts of interest or mismanagement. Their duties can vary widely depending on the terms outlined in the trust instrument, but often include the power to remove and appoint trustees, modify trust terms in response to changing circumstances, and resolve disputes among beneficiaries.
Our firm often utilizes trust protectors to decant or modify a trust when the original trust no longer best serves the beneficiaries. Trust protectors can have the authority to make amendments or modifications to the trust document when necessary, such as in response to changes in tax laws, family circumstances, or investment opportunities. This flexibility ensures that the trust remains relevant and effective over time.
One of the primary functions of a trust protector is to ensure the trust operates in the best interests of the beneficiaries and according to the grantor’s wishes. This typically involves monitoring the trustee’s performance, reviewing financial reports, and intervening if the trust’s objectives are at risk. Trust protectors often possess specialized expertise in law, finance, or other relevant fields, equipping them to make informed decisions regarding the trust’s administration. Their independent oversight acts as a check and balance, helping maintain accountability within the trust structure.
By balancing stability with adaptability, trust protectors play a vital role in preserving the long-term integrity and efficacy of trusts, ultimately benefiting both the grantor and the beneficiaries. To determine if this is the best approach for you, it is essential to work with an experienced estate planning attorney and/or financial advisor who can assess your circumstances and provide tailored guidance. We would be happy to review your specific situation with you.
Meet the Author:
Haley Price is an attorney with Lobb & Plewe. Her areas of focus are primarily on estate planning, trust administration, and probate.
