An Explanation of Trust Protectors
A trust can be an important tool in your estate plan. First and foremost, it avoids probate and consequently - Court supervision. For most families, that is a great thing. Privacy, speed and the cost savings in avoiding probate can be considerable. But what if the trustee you pick doesn’t do their job? What if they make poor investment choices, or refuse to distribute trusts assets as directed in the trust? What if the law changes? Even more likely, what if one of your beneficiaries find themselves unable to accept an outright bequest from your trust because of their own financial problems, such as a bankruptcy, foreclosure or anticipated divorce?
These are all situations that we see too often. The trust is outdated, and the selection made as trustee doesn’t work out the way the trustmakers envisioned.
A Trust Protector may be a terrific option for many families who already have a trust or are creating a trust. First, a little background.