Simply put, a trust protector is a person the settler appoints to ensure that the trustee carries out the settlor’s wishes as set forth in the trust instrument. Unlike traditional trustees, trust protectors are not involved in the day-to-day administration of the trust. However, a trust protector can play a useful role in trust administration by monitoring the actions of the trustee and by making critical decisions about the operation of the trust or the distribution of trust assets. On the other hand, there can be some disadvantages as well.
Click to read the full text of “What Wealth Management Professionals, Trust Officers and Estate Planners Need to Know About Trust Protectors” from our partners at Wealth Strategies Journal.