For many, the idea of estate planning centers around creating a will. While your will serves as the foundational document, there are many important tools you can utilize to help ensure your assets and beneficiaries are protected upon your passing. One such thing you should consider is establishing a trust fund. In addition, you can appoint someone to serve as a trust protector. If you’re not sure what this entity’s role in your estate is, you’ll want to keep reading. The following blog explores what you should know and why working with Tampa trust lawyers is in your best interest.
What Is a Trust Protector?
First and foremost, it’s imperative to understand that a trustee and a trust protector are different. While both have important responsibilities in ensuring the integrity of a trust fund, their responsibilities vary greatly. Trust protectors were initially established as a way to oversee foreign trusts and offshore accounts but have evolved over time.
Typically, a trustee is appointed by the grantor, or creator of the trust, to manage the assets and distribute them to beneficiaries in accordance with the terms and conditions of the trust fund. It’s important to understand that the person you appoint to serve as a trustee has what’s known as fiduciary duty. This means they are legally obligated to act in the best interest of the fund and its beneficiaries.
A trust protector, on the other hand, is appointed to oversee and ensure that the trustee is following the terms and conditions of the trust fund. Trust protectors have no vested interest in the trust funds they are assigned to oversee. However, they have the power to appoint and remove trustees, add and remove beneficiaries, change the language of the trust, and approve or deny the actions of a trustee.
Do I Need One for My Estate?
Appointing a trust protector is not something that everyone will need to do, but it is something you should consider. Typically, appointing a trust protector is imperative for dynasty trusts in particular, as it will span generations and different trustees. As such, ensuring you have an entity assigned to ensure the terms and conditions of the fund are carried out in accordance with your wishes can help provide peace of mind that your family will benefit for decades.
If you’re interested in creating a trust fund, it’s in your best interest to meet with an experienced attorney. Not only can they assist you in establishing the fund correctly, but they can also help you explore whether or not appointing a trust protector is something you should consider. When you need help, the team at Tampa Law Group is here to help. We understand how difficult these matters can be, which is why our firm is committed to giving you the best advice possible. Contact us today to discuss your wishes and to learn how we can help you achieve peace of mind.
