What is a Trust Protector?
Definition of a Protector: One who serves as the champion; the overseer of the trust. The position of a trust protector is not normally encountered in domestic U.S. trusts, however this is changing, but the position is very common in other common law jurisdictions. Under many foreign trusts, the protector is originally the settlor, which can change later.
What does a Trust Protector do?
To understand this further, keep in mind, the trust protector often has the following powers:
- The power to remove and replace any trustees,
- The power to reject investment decisions of the trustees, and
- The power to reject distribution decisions of the trustees.
What is the different between a US Protector v. Foreign Protector?
In most instances using a foreign protector or a trust protector outside of your own jurisdiction make the most sense for total protection of the trust. The trust can be foreign or domestic in many instances but using a qualified protector from foreign jurisdiction can give added protection to trust assets.