Benefits of a Trust Protector
Many individuals in the United States utilize trust protectors. In short, this is an individual appointed authority over a trust. Trust protectors ensure that trustees maintain the integrity of the trust, make good distribution and investment decisions, and adapt the trust to changes in circumstances. As changes inevitably happen, the trust protector holds the authority to adjust the trust terms, ensuring the fulfillment of the trustmaker’s wishes. Notably, the trust protector can act without going to court. This important benefit saves time and money and honors family privacy.
6 Ways a Trust Protector Can Help You
Remove or Replace a Trustee
In many situations, trust protectors can remove or replace trustees if they’re no longer willing or able to carry out their duties. Further, they can replace trustees who are not fulfilling their duties correctly.
Amend the Trust
Depending on the trust’s provisions, trust protectors usually carry the power to make certain modifications or amendments to the trust, especially if new laws affect its operation.
Resolve Conflicts
Trust protectors typically carry the authority to resolve disagreements between trustees and beneficiaries.
Safeguard the Trust
Trust protectors ensure the trust is managed according to its intended purpose. For this reason, they typically modify distributions from the trust in response to changes in beneficiaries’ lives, such as divorce, drug addiction, disability, or lawsuits.
Add Beneficiaries
Trust protectors can typically add beneficiaries to the trust. For instance, they may add a beneficiary if a new descendant is born.
Hold Veto Power
Trust Protectors hold veto power. For example, they may reject unwise investment decisions.
Can You Benefit from a Trust Protector?
Generally speaking, they are beneficial, especially for trusts designed for long-term purposes. Ensuring the effectiveness of a trust protector involves clearly defining their authorized powers. It’s essential that the individual comprehends their role in executing the trustmaker’s intentions, not imposing their own agenda. Integrating trust protector provisions into a new trust is straightforward, and existing trusts can be amended to include a trust protector, ensuring enhanced oversight and protection. Is your trust missing a trust protector or in need of an update? Let us help you fortify your trust for the future! Contact our office today for expert guidance.