What is a trust protector?

A trust protector is a person or entity appointed to protect the trust assets in a trust. This role is often referred to as a “trustee” but is distinct in that a trustee is responsible for the management and administration of the trust, while a trust protector is responsible for the oversight of the trustee and the trust’s assets. In the District of Columbia, trust protectors are governed by asset protection law, which is enacted to protect the trust assets from creditors or other third parties who may try to access them. The primary purpose of a trust protector is to act as a kind of check-and-balance system on the trust. The trust protector can review the actions of the trustee, and make sure that the trust is doing what it is supposed to be doing and adhering to the regulations of the trust. In addition to reviewing the actions of the trustee, a trust protector can also provide advice and guidance on the trust, and can even have the power to modify or terminate it if necessary. Trust protectors can vary in their responsibilities depending on the purpose of the trust. For instance, a trust specifically set up for tax planning purposes may be managed by a trust protector who is also an experienced tax specialist, while a trust with charitable intentions may have a trust protector with legal expertise in nonprofit organizations. Ultimately, the trust protector’s role is to protect the trust assets and ensure that they are utilized in line with the wishes of the trust creator.

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What is a trust protector?

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