Trust Protector
In trust law, the protector of a trust is the person who is appointed within the trust’s deed to direct the trustees with regards to the administration of the trust. The protector plays a very important role in ensuring that the trust is correctly administered with respect to the settlor’s wishes. Although the trustee is responsible for the management and administration of the trust, the protector plays a role in ensuring that the trust is correctly administered in compliance with the settlor’s wishes, and has influence over a number of changes that can be made to the trust.
For more information on how DeltaQuest can assist you with your trust requirements, please Contact Us.
Role of a Trust Protector
A protector is an individual who is appointed to retain some control over the trustee, including the ability to dismiss the trust should the need arise, and the power to appoint a new trustee if required. The protector has the power to make a number of changes to the trust, including the addition or removal of beneficiaries, and the power to appoint replacement protectors.
The use of a trust protector is increasing in popularity in today’s estate planning environment. The ability of the trust protector to direct the trustee will vary from one trust to another.
A protector may be appointed by a settlor for a number of reasons. A protector enhances the flexibility of the trust, as it is not the sole responsibility of the trustee to make any changes. A settlor may appoint a protector out of concern that the trustee may not pay complete and satisfactory attention to his wishes. This is why the protector is granted the ability to make a range of changes to the trust, including the ability to approve proposed trust distributions, and to approve investment recommendations.
Who can be a Trust Protector
Anyone can serve as a protector of a trust although it is recommended to appoint an independent third party as the trust protector, in order to avoid any difficult tax consequences. Trustees, beneficiaries or members of the trustee’s immediate family should generally not be named as trust protectors. Protectors are usually lawyers, accountants, friends and family members. Protectors are usually not included within the trust deed as beneficiaries of the trust.
Trust Services offered by DeltaQuest
DeltaQuest provide a range of trust services, including the formation of a trust. We can assist you in relation to the maintenance and administration of your trust, in compliance with the laws in place within your trust’s jurisdiction along with the requirements stipulated within your trust deed. For further information, please visit our Trust Services section.
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