A Trust Protector is someone appointed to watch over a trust to help ensure the trust and the beneficiary are not adversely impacted by unanticipated liabilities, changes in law or other circumstances, or by trustee mismanagement or misconduct.
A trust is simply an agreement for one person (a Trustee) to hold title to property for the benefit of another. There are many types of trusts ranging from simple short-term trusts to highly complex trusts that may be in effect for generations.
There is no guaranty that a Trustee will always exercise good business judgment, or put the interests of the beneficiary over their own interests. In addition, future changes in law or circumstances of the beneficiary could adversely impact continued administration of the trust in accordance with the wishes of the settlor or the best interest of the beneficiary.
Because of inherent uncertainties in any long-term arrangement, it is prudent to include protective provisions to help shield the trust and the beneficiary from unforeseeable circumstances or liabilities.
The concept of a Trust Protector (sometimes referred to as a Trust Advisor) is a relatively new addition to trust law in the United States, but is quite common in off-shore jurisdictions. One of the most effective powers of a Trust Protector is the power to remove and replace a trustee.
Trust Protector Services, L.L.C. (“TPS”) provides trust protector services for virtually all types of trusts, both foreign and domestic. Contact us to learn more about trust protector services, or naming Trust Protector Services, L.L.C as your trust protector.