What Powers Does a Trust Protector Have
The trust document defines the protector's authority. Common powers include:
- Removing and replacing a trustee who is not performing well
- Modifying trust terms to respond to changes in tax law
- Changing the governing law of the trust
- Adjusting distribution provisions for beneficiaries
- Resolving disputes between beneficiaries and the trustee
When a Trust Protector Makes Sense
Trust protectors are especially useful in irrevocable trusts. These trusts cannot be easily changed once created. Tax laws, family circumstances, and financial conditions evolve over time. A trust protector provides flexibility without giving up the benefits of an irrevocable structure.
Who Should Serve as Trust Protector
Most people choose a trusted advisor, attorney, or family friend. The protector should understand the family's values and long-term goals. They should act independently and objectively. They should not be a beneficiary, as that could create a conflict of interest. The right protector gives your trust flexibility to adapt without court involvement.