Many assume that creating a Will is the only way to protect their assets after their passing. While a Will is a great foundational document for your estate, taking the time to consider your other options is important. One such option you may want to establish is a Trust Fund. However, you may also need to consider appointing a Trust Protector. If you’re unsure what role this entity will play in your estate, the following blog explores what you should know about these matters and why working with a Medina County, Ohio Trust preparation lawyer is in your best interest during these difficult matters.
What Role Does a Trust Protector Have?
If you are considering establishing a Trust Fund, understanding the role of a Trust Protector is imperative. Unfortunately, many assume a Protector and Trustee are the same entity, which is far from the truth. A Trustee is appointed by the creator of the Trust to manage and distribute the assets according to the terms and conditions of the Trust. This person has a Fiduciary Duty in their role, as they are legally required to act in the best interest of the trust.
A Trust Protector, on the other hand, is an entity appointed by the Grantor with power over the Trust. They are not the Trustee and have no Fiduciary Duties to the Trust. However, they can make necessary changes to the terms and conditions that the Trustee cannot make. This is because a Trust Protector can change the terms of an Irrevocable Trust if they believe it is what the Grantor wants, which allows the Trustee to fulfill their fiduciary duty.
Additionally, they can oversee the Trustee to ensure they are adhering to the terms and conditions of the Fund. It’s also important to understand that, typically, an attorney is appointed to this role.
Is Appointing One Necessary for My Estate?
While a Trust Protector may not always be necessary for all estates, having someone appointed to this role can be beneficial in a number of instances. Typically, you’ll find that the most beneficial time to appoint a Protector is if you want to establish a Dynasty Trust. As this Trust Fund will last generations in your family, you will not always have a say over who the Trustee is. As such, having a Trust Protector can help keep the Trustee in line, and they may remove them and appoint someone new to the position if they go against their Fiduciary Duty.
However, having a Trust Protector also provides additional privacy, flexibility, lower estate taxes, and assistance in handling complicated assets. As such, discussing your circumstances with an attorney can help you determine if appointing a Trust Protector is right for you.
At Krause Law, our dedicated estate planning team will do everything possible to help you achieve peace of mind that your assets will be protected after your passing. When you are ready to establish a Trust and are considering a Trust Protector, contact our team. We understand how difficult these matters can be to navigate, which is why our team will help fight for you. Contact us today to learn how we can assist you during these times.
