A trustee manages a trust for you, but sometimes you want an extra layer of protection, especially for a trust that’s meant to last for a long time. This is when you may want to consider assigning a trust protector to your trust. They can help you protect these assets and leave something for the next generations even as laws change or other variables interrupt your well-laid plans. A Washtenaw County trusts attorney can tell you more about this role and if having a trust protector is right for you.
What Does a Trust Protector Do?
A trust protector is there to help prevent your assets and trust from being adversely affected by a change in circumstances. They can also make sure that the assets in the trust aren’t being misused or misappropriated. Someone who takes on this role can:
- Remove a trustee and replace them
- Replace a trustee who has passed away
- Oversee investment decisions
- Review how assets are distributed
- Help settle conflicts between the trustee and beneficiaries
- Veto the actions of a trustee
- Change rules of the trust in response to new or revised laws
Do I Actually Need a Trust Protector?
This is a lot of power to give to one person, but do you actually need a trust protector if you already have a trustee? This is really up to you. If you want your trust to last for a long time and protect your assets for multiple generations, it can be a good idea to have somebody take on this responsibility.
On the other hand, you should also think about the potential risks here. You are giving someone a variety of powers over your trust, so you need to make sure that they can be relied on not to abuse those powers. It’s also possible that they could get into disputes with the trustee, and some of these arguments could be hard to settle because there is not a lot of case law about protectors.
Who Can Be a Good Fit For This Role?
A trust protector is like a trustee. You shouldn’t just assign anyone to this important role. You should consider potential candidates carefully and make sure that you pick someone who:
- Has the ability and willingness to take on the job
- Is not already related to the trust (so not a trustee or a beneficiary)
- Can maintain neutrality and help address conflicts
In many cases, the grantor of the trust chooses a lawyer to protect the trust. This isn’t required, but a lawyer is a good fit for their role since they are unlikely to be beneficiaries and they should have less trouble staying neutral when conflicts need to be dealt with.
Make Your Estate Plan Today
If you want to learn more about trusts and other ways to protect your assets, contact Collis, Griffor & Hendra. Every estate is different, so let us help you make an estate plan that’s perfectly tailored to the needs of you and your family.
