Why should I make a trust? This is a common question. In this series of posts, here’s twenty great reasons to have a trust!
Part F: Trust Protectors.
19. An executor can’t change your Will, but a trust protector can change your trust according to your instructions.
Your trust can include provisions for a “trust protector.” This is someone to whom you give authority to monitor
your trust and make changes to the trust if justified. Reasons to modify the trust may include changes in the tax law, or changes in the circumstances of one or more of your beneficiaries. By giving the trust protector authority to modify your trust, you enable these changes to be made without requiring a lengthy and expensive court process. This power can apply both during your lifetime, and after your death.
A Will, on the other hand, cannot be modified after your death by the executor, nor can it be changed during your lifetime if you become incapacitated. Not even a power of attorney can be used to modify a Will.
20. A trust protector can remove the trustee.
A trust protector can be given the power to remove or replace the trustee or investment advisor. This provides a second layer of supervision over the trust because the trustee or investment advisor may lose their jobs if they are not adequately performing. Giving the trust protector this power also protects against vacancies in these positions by allowing the trust protector name successors. It allows for changes if circumstances warrant a different type of trustee or one more suited to the temperament of the beneficiaries. All of this can occur easily with a trust protector, avoiding lengthy and costly court proceedings.