What is a trust protector?

A trust protector is a person or entity given certain powers over a trust. In New York, trust protectors may be appointed to oversee certain aspects of a trust in order to protect the interests of the beneficiaries. The trust protector has authority to make decisions about distributions from the trust, change trustees, or even terminate the trust if necessary. The trust protector is usually specified in the trust document and has certain fiduciary duties to the beneficiaries. He or she must act in good faith and must have a duty of loyalty to the trust. The trust protector must make decisions that are in the best interest of the beneficiaries and not act solely for his or her own benefit. The trust protector must keep the trust assets safe and secure. He or she must also make sure the trust assets are invested properly, and that all taxes and other financial obligations are met. Furthermore, the trust protector is responsible for making sure all trust distributions are made in a timely manner. All in all, a trust protector is similar to a "watchdog" who is responsible for protecting the assets of the trust. The trust protector serves as an extra layer of protection for the trust beneficiaries and ensures that the trust is managed properly and in their best interests.

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