What is a trust protector and how does it work?

A trust protector is someone who is appointed to monitor the actions of the trustee and enforce the trust’s provisions and objectives. The trust protector is not responsible for managing the trust; that responsibility falls to the trustee. In Nebraska, the trust protector can have both wide-ranging and specific powers, including the power to remove or replace the trustee, veto trustee decisions, or generally making sure that the trust is functioning in accordance with the grantor’s wishes. Typically, the grantor appoints a trust protector who is independent from the trustee but is someone they trust, such as a family lawyer or professional adviser. The trust protector is responsible for monitoring the trust and protecting the grantor’s wishes and interests, but does not get involved in the day-to-day management of the assets. They may review or approve investments, distributions, or other decisions that the trustee wants to make, and serve as a kind of fiduciary bridge between the grantor and the trustee. The trust protector is also responsible for ensuring that the terms of the trust are carried out as written on behalf of the beneficiaries of the trust. In Nebraska, an individual may serve as both the trustee and the trust protector, but it is important for them to be aware of their fiduciary duties to the trust and the beneficiaries. The grantor should be sure to include provisions in the trust document that subject the trust protector to liability if they fail to properly perform their duties. Additionally, the grantor should make sure to appoint a qualified and experienced trust protector in order to make sure that all the provisions of the trust are fulfilled.

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What is a trust protector and how does it work?

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