Benefits of Trust Protectors
Irrevocable trusts may be in effect for several decades, or even longer. Dynasty trusts, in particular, continue over generations. While well-drafted trusts are designed to provide some flexibility for changing laws and circumstances, no one can predict if the trust terms established now will effectively preserve assets, serve beneficiaries and save taxes according to the grantor’s wishes in the years to come.
The use of Trust Protectors (sometimes called Trust Advisors) is not yet common for trusts in the United States, but knowledgeable attorneys are discovering that Trust Protector powers are a key tool to effective trust planning. While some changes in a trust can be accomplished by court action, or even by consent of all parties to the trust, actions by a Trust Protector are more predictable and less time-consuming and costly.
Trust Protector powers can include:
- Power to remove and replace trustees
- Power to change situs and governing law
- Power to correct errors and ambiguities
- Power to add or remove beneficiaries
- Power to grant and remove powers of appointment
- Power to request accountings
- Power to interpret trust provisions
Trust protectors can be used for existing trusts that contain suitable provisions or included with a trust currently being prepared. Another option is to decant a trust with no trust protector powers into a new trust that contains the appropriate provisions. Learn what you need to name TrustProtector, LLC as your trust protector.