Why Do You Need A Protector In A Trust
Have you heard the term “trust protector”? Perhaps you have never heard this or maybe you are researching this because someone suggested it to you. Either way, here is an explanation of what a trust protector is, and what its advantages and disadvantages are.
If you are creating a trust of any kind, at a minimum, you must have a trust maker, a trustee, and a beneficiary. It is optional for you to add a fourth position by using a trust protector which is usually a vacant seat and only springs into action when needed by the parties. (those three mentioned above).
A trust protector doesn’t have any more power than the local probate court judge. All the things and powers that a trust protector can do, the local probate judge can also do. A trust protector might have the power to amend the trust, change the trustees, fix scriveners error’s or other provisions that are causing the trust makers intent to be impacted and might even also have the power to adjust the beneficiaries shares.
No Matter What Power Is Held By The Trust Protector Though There Is The One Thing They Cannot Change Or Deviate From Is The Trust Maker’s Intent
Clients can be encouraged to use a trust protector in their living trust because the trust protector can solve most administrative problems that could occur after a client’s death. Doing this means a local judge is not required to fix the problem, instead a private hand-picked professional may be used to solve the problem privately and within the family.
If a problem arises and there is no trust protector, the parties are forced to go to a local probate court to ask the judge to fix the problem on a trust. This added step usually costs a lot more money, can be an invitation to lawsuits from other beneficiaries, and will usually take a lot more time.
If you have further questions about the trust protector and whether or not it makes sense in your situation, please feel free to call her office at (480) 418-8448 and schedule a time to speak with us. We’re here to help.