Every trust needs a trustee, but some grantors want to give their assets a bit more oversight. A trust protector can help change the rules of a trust when necessary. Many people who work with a Bergen County trust lawyer want their trusts to last for at least a generation or two. Assigning someone this protector role can ensure that any assets remain in good hands even if unforeseen circumstances are encountered.

What is the Role of a Trust Protector?

The trust protector is like a trustee in that they have power over the trust. However, administering the trust isn’t really their job. Instead, a trust protector is there to act in case there is a change in circumstances that affects the trust’s usual operation. The protector can step in to protect the assets and make sure that it can still function for its beneficiaries.

When Can a Trust Protector Step In?

There are a few good reasons for trust protectors to use their powers. They may step in if:

  • There are changes to tax laws
  • There is a conflict between the trustee and the beneficiaries
  • The trustee needs to be removed and replaced
  • It’s necessary to overrule decisions about investments or distribution

A trust protector has the power to veto many of the decisions of the trustee. So it’s important to pick someone who is responsible and a good fit for the role. Someone who is just intent on meddling in the normal operation of the trust is just going to cause legal issues and arguments.

Can My Lawyer Be a Trust Protector?

A lawyer can be a good choice for this role. When you make someone a trust protector, you want to choose someone who:

  • Has no relation to the trust, i.e. they are not a trustee or beneficiary
  • Can perform the functions the role requires
  • Will maintain neutrality while addressing issues between the trustee and beneficiaries

So you are not required to give a lawyer this job, but they are often a solid candidate for it.

Is It Risky to Give Someone This Authority?

The powers given to a trust protector can be quite broad. Is it a risk to give someone this much control over your trust? Potentially, yes. They would often be able to overrule your trustee and could essentially end up functioning as a trustee themselves. This is why it is important to be sure about who should serve as a protector and what kinds of powers they will have.

Schedule an Estate Planning Consultation

When you are ready to learn more about all of the estate planning tools at your disposal, contact the Law Offices of Colin M. Quinn. We can schedule a consultation and our lawyers will take the time to help you develop an estate plan that meets the needs of you and your loved ones.