What is a trust protector and how can they help in asset protection planning?

A trust protector is a third-party individual or entity that can be appointed by a trust grantor to protect the assets of a trust from any creditor claims and manage the trust when trustees are not able to do so. In the state of New York, trust protectors are authorized to perform a number of duties, including appointing and removing trustees, altering trust terms, waiving trusts of certain assets, and transferring assets to another trust. Trust protectors are typically people who are trusted by the grantor and are knowledgeable about the law. This means that they can manage the trust with a clearer understanding of the legal requirements, and provide protection from creditors’ claims. Trust protectors are often family members or business associates who can advocate for the trust and oversee its operations. Trust protectors can be beneficial for asset protection planning because they serve as an additional level of oversight, and can help ensure that the trust assets are managed according to the grantor’s wishes. They can also help keep the trust compliant with tax and legal requirements. However, it is important to note that trust protectors cannot have any conflict of interest, and should be chosen carefully and with input from a lawyer or other legal expert.

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What is a trust protector and how can they help in asset protection planning?

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