The trust is either a revocable trust, an irrevocable trust or one of many other types of trusts.
There may be several trust documents as part of a person's estate plan.
Trust: In Estate Planning, the entity/person that sets up/establishes a trust is known as the trustor (Other names that are common for a trustor are: donor, grantor, settlor or trust maker)
Trustor - The trustor, basically, transfers control of certain of their assets into a trust (although this is a simplified explanation). The trust document explains in detail the wishes of the trustor with respect to the trust and those assets that are in the trust.
Trustee - The trust can have one or several trustees (co-trustees) those responsible for the management of the trust.
The trustee manages the trust in accordance with the terms of the trust document. (To make things more interesting, the trustor can also be a trustee of the trust.)
Trust Protector - There can also be a trust protector for the trust. A trust protector is not the same as a trustee.
The role of the Trust Protector:
A trust protector has certain responsibilities to the trust and often these are fiduciary responsibilities.
The trust document can give certain powers to the trust protector, and a trust protector’s responsibilities/powers can be very broad.
A trust protector, under certain circumstance, can:
Modify a trust. There are situations when changes in the economy or tax laws advise that certain provisions of the trust document be replaced.
Review the actions of trustees and can, in certain circumstances, even remove a trustee.
Change the domicile of a trust.
When given the authority, terminate the trust.
Change the powers of the trustee.
Settle disputes among co-trustees and among beneficiaries of the trust
A trust protector is an independent third party individual or institution. They should not be related to the settlor of the trust; to the beneficiaries or to the trustee. In many situations they hold fiduciary responsibilities. There may be fees due to the trust protector.
There should be a provision in the trust document to replace the trust advisor if/when necessary.
Designation of a trustee and trust protector are critical decisions for the trust and should be carefully evaluated with an estate planning attorney.
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