{"id":1947,"date":"2021-03-09T00:00:00","date_gmt":"2021-03-09T00:00:00","guid":{"rendered":"https:\/\/wordpress-257273-2704704.cloudwaysapps.com\/newsletters\/trust-protectors-are-they-a-good-fit-for-your-client\/"},"modified":"2021-03-09T00:00:00","modified_gmt":"2021-03-09T00:00:00","slug":"trust-protectors-are-they-a-good-fit-for-your-client","status":"publish","type":"newsletters","link":"https:\/\/wiroweklaw.com\/newsletters\/trust-protectors-are-they-a-good-fit-for-your-client\/","title":{"rendered":"Trust Protectors: Are They a Good Fit for Your Client?"},"content":{"rendered":"

What Is a Trust Protector?<\/b>
Traditionally, the three roles that must be filled when setting up a trust are the settlor (also called a grantor, trustor, or trustmaker), the trustee, and the beneficiary. All three roles are necessary to create a trust that functions properly. Although it is relatively common to use trust protectors in foreign asset protection trusts, a trust protector is a fairly new role in trusts drafted in the United States for estate planning purposes. However, as the number of trusts designed to last for generations grows, estate plans need more built-in flexibility. Giving a trust protector, through the terms of the trust, certain powers over the trust, such as removing or appointing trustees, adding or removing beneficiaries, and amending or even terminating the trust, ensures that your client\u2019s intentions for creating the trust are fulfilled despite changing law or circumstances.
 
How Is a Trust Protector Selected?<\/b>
A settlor may select as a trust protector any individual or group of individuals, such as family members, business associates, friends, attorneys, accountants, or other professional advisors. The naming of a trust protector may be specific, such as \u201cmy neighbor John Doe,\u201d or general, such as \u201ca CPA selected by the majority of the owners of the [ABC CPA Firm].\u201d The settlor provides for and selects a trust protector in the trust agreement.
 
Who Makes a Good Trust Protector?<\/b>
Because of the many and varied powers that a trust protector can hold, your client should name a trust protector who has attributes, knowledge, or skills suitable for the responsibilities of the role. For example, if the trust protector has the power to amend the terms of the trust to account for changes in tax law, the selected trust protector should have some understanding of tax law and how it will impact the trust. If a trust protector has the power to veto or direct trust distributions to beneficiaries, the selected trust protector should understand the family history and desires of the settlor. Different powers may require the selection of different trust protectors or possibly a committee of trust protectors.
           
What Does a Trust Protector Do?<\/b>
Based on your client\u2019s wishes, the purposes of the trust, and applicable laws, the trust protector can hold many different powers, including administrative powers traditionally held by a trustee, such as the power to make distributions, and judicial powers traditionally held by a court, such as the power to remove beneficiaries. Trust protector powers can include the power to<\/p>\n