When you establish a trust, you have to name someone the trustee. This person is in charge of administering the trust, but you can also give an additional person some power over this trust and how it works. That person is a “trust protector,” and there are a few good reasons why you may want to consider assigning one. A Des Moines estate trust administration lawyer from our firm can tell you more.
Why Would a Trust Need a Protector?
You may want your trust to last for a long time, through multiple generations. This can work out just fine, but how do you account for changing circumstances over time? Tax laws can change. Family situations can change. A trust protector can allow the rules of a trust to change so that your assets are protected.
What Can a Trust Protector Do?
A trust protector can change the terms of your trust in a few ways. They can:
- Remove or replace a trustee
- Veto the decision of a trustee
- Control how investments are made
- Determine how assets should be distributed
- Mediate conflicts between a trustee and beneficiaries
The trust protector is able to address many of the possible issues that could arise after you pass away and leave the trust for your loved ones. It is a lot of power to give somebody though, so you should treat this candidate selection process just like you would the trustee selection process. Think carefully about who would be a good fit for the role, talk to your potential candidates, and then assign a trust protector who can handle the job.
Who Can Serve as a Trust Protector?
There are a few rules about who can be selected as a trust protector. If you do determine that you want to have one for your trust, it should be:
A third party to the trust: This means that they are not the trustee or a beneficiary of the trust. They are completely unrelated to it, so they shouldn’t have any conflict of interest.
Someone who can perform the functions of a trust protector: The candidate chosen for the job needs to be able to actually perform the necessary tasks. This cannot be a figurehead position for someone who lacks the capacity to play the role properly.
In many cases, the person chosen for this role is a lawyer. This is not a requirement, but an attorney is often a good fit for this kind of job.
Talk to Our Estate Planning Lawyers
If you want to learn more about trusts and other estate planning tools, contact Herting Law, PLLC. We can schedule a consultation and tell you more about what our lawyers can do to help you protect your assets and leave something behind for the next generations.
