What is a trust protector and what does it do?
A trust protector is an individual or entity appointed by the grantor of a trust to act as a separate fiduciary and provide oversight of the trust. In Utah, the trust protector can be specifically named in the trust document or appointed by the court after the trust is created. The trust protector usually has the authority to remove and replace trustees, approve or reject any distributions to the beneficiaries and approve or reject trustee decisions. The trust protector also serves as a fiduciary that defends the trust and acts in the best interests of the beneficiaries. For example, the trust protector can ensure that the trustee is following the terms of the trust document as they pertain to the beneficiaries. Trust protectors often possess specific expertise and judgment that may help the trust avoid outside interference or unwanted distributions. Trust protectors can also provide oversight in cases where the grantor of the trust is no longer living. This could include reviewing the trustee’s performance and making sure that the terms of the trust are followed. This can be especially important since the trustee may have no direct accountability to the grantor. Trust protectors can be beneficial for estate planning purposes by providing another layer of protection to the trust. This layer of protection can help ensure that the grantor’s wishes are honored and that the trust is handled according to the trust document.
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