What is a Trust Protector?
A trust protector is a person or entity appointed in a trust document to oversee the trustee's actions and ensure that the trust is administered according to the settlor's intentions. The role of a trust protector can vary significantly depending on the terms of the trust, but generally, they have the authority to:
Remove and replace trustees: If the trustee is not performing their duties properly, the trust protector can remove them and appoint a new trustee.
Modify trust terms: In some cases, the trust protector may have the power to amend the trust terms to adapt to changing circumstances or laws.
Resolve disputes: The trust protector can mediate disputes between beneficiaries and trustees, or between co-trustees.
Approve trustee decisions: They may have the authority to approve or veto certain decisions made by the trustee.
Monitor trust performance: The trust protector can ensure that the trust assets are being managed effectively and in the best interest of the beneficiaries.
The inclusion of a trust protector can provide an additional layer of oversight and flexibility, especially in complex or long-term trusts. However, the specific powers and duties of a trust protector should be clearly defined in the trust document to avoid ambiguity and potential conflicts.