What is a Trust Protector?
Several clients, when I am reviewing their trust documents prior to signing them, ask me what a Trust Protector is and what is the purpose of them. A Trust Protector is someone who is either named or appointed in a trust documents to provide flexibility for the trust, specifically irrevocable trusts.
An example of where to use a Trust Protector is after your death, your trust becomes irrevocable. The assets are held in trust for your children but Congress passes a law which the trusts violate and causes a significant tax. A Trust Protector can come in and re-write the trust to conform with the new law. This would ensure that the beneficiaries would not have to pay the extra tax but the re-written trusts would still fulfill the grantor's intent.
The advantages of a Trust Protector is the flexibility it gives to the trust. The downside? You give significant power to someone to amend the trust.
To learn more on trust protectors, please consult our estate planning attorney at Wood, Atter & Wolf, P.A. in Jacksonville and Ponte Vedra Beach, Florida.
