Trust Protector

A trust protector is a third-party individual or entity appointed within a trust agreement to oversee and protect the interests of the beneficiaries and ensure the trust is administered according to the terms in the trust document. 

The specific duties of a trust protector can vary depending on the terms of the trust, but may include responsibilities like: 

• Overseeing trustees: The trust protector might have the authority to monitor the actions and decisions of the trustee(s) to ensure they are in the beneficiaries’ best interests and aligned with the terms of the trust. A trust protector may also have the power to appoint or remove trustees due to incapacity, conflict or interest, or failure to fulfill their duties. 
• Modifying trust terms: In some cases the trust protector may be able to modify certain terms of the trust due to changes in circumstances or unforeseen events. 
• Resolving disputes: If disputes arise among beneficiaries, trustees, or other interested parties, the trust protector might act as the mediator or arbitrator to resolve conflicts. 
• Ensuring compliance: The trust protector may be tasked with making sure the trust operates in compliance with relevant laws and tax requirements, which can include overseeing tax reporting, investment management, and other administrative tasks. 
• Protecting trust assets: The trust protector may have the authority to act to attempt to shield trust assets from risks like creditor’s claims, legal challenges, and changes in tax laws by updating the trust.