Summary: Careful estate planning is about crafting a plan that can withstand any of a number of possible contingencies. One way to gain an extra layer of protection that ensures that your plan will carry out your goals is by using a trust protector. Your trust protector can make sure that, even if a trustee ceases carrying out his/her responsibilities as you had instructed, your plan can still handle it and ensure that your objectives will be accomplished.
A trust, or trusts, can represent a very important of a complete estate plan for many folks. Depending on what types of trusts are included in your estate plan, they may help you avoid the expense and delays associated with some types of probate administration, save on taxes or help you protect a loved one with potential money management or legal liability issues. In order for a trust to accomplish what it's designed to do, it must have a competent and reliable trustee managing it. While any trust grantor doubtlessly plans carefully in selecting a trustee or trustee, no process is foolproof. One way to give yourself and your beneficiaries a little extra peace of mind is with the use of a trust protector.
A trust, or trusts, can represent a very important of a complete estate plan for many folks. Depending on what types of trusts are included in your estate plan, they may help you avoid the expense and delays associated with some types of probate administration, save on taxes or help you protect a loved one with potential money management or legal liability issues. In order for a trust to accomplish what it's designed to do, it must have a competent and reliable trustee managing it. While any trust grantor doubtlessly plans carefully in selecting a trustee or trustee, no process is foolproof. One way to give yourself and your beneficiaries a little extra peace of mind is with the use of a trust protector.
A trust protector is
a person you name in your trust. Generally, there are a few reasons why you
might want to name a protector in your trust. One is to have an extra
responsible person watching over the trustee to ensure that he/she is doing
his/her job properly. Your protector can also provide guidance regarding
distributions or investment choices. Additionally, your protector may be able
to make changes to your trust in certain narrow situations such as changes to
the laws in your state. Utilizing a trust protector can be especially helpful
if your estate plan includes a specialized trusts. If your plan includes a
special needs trust, adding a trust protector can be particularly beneficial.
In some trusts, the
protector has exactly one job and one power: to identify when the trustee has
ceased carrying out his/her duties in a proper fashion, and to terminate
him/her as a result. Depending on how your trust is constructed, and the laws
in your state, you may be able to empower your trust protector to name a new
trustee to replace the terminated one. If you prefer, you can restrict the
protector's powers to terminating a trustee only, and leaving the replacement
of that trustee to the succession language you placed in your trust agreement
document.
The trust protector
language in your trust should be carefully constructed, just like the trustee
language of your trust. The recitation of the powers you are giving your
protector should be very specific, so that your protector knows exactly what
he/she is being asked to do. Additionally, much like how a trust should include
several successor trustees who would serve in the event of a preceding
trustee's death, resignation or other inability to serve, your trust should
also name several successor protectors who will take over in the event of a
predecessor's inability to continue serving.
