Add a Trust Protector to Your Estate Plan
In the heat of summer, we don’t just protect ourselves with a ball cap or a little zinc oxide on our noses. No, we add extra layers of protection. We avoid dehydration by drinking more water. Too hot to go outside? Head inside for some deliciously cold AC. And sunscreen protects our skin from sunburns that may lead to skin cancer. With estate planning, we use legal documents to protect assets, heirs, and legacies, often by using a trust. Did you know, though, that you can add extra protection to your estate plan by naming a trust protector?
5 Reasons to Appoint a Trust Protector.
Arizona law addresses issues regarding trusts, including the appointment of a trust protector. Some reasons to appoint someone to watch over your trust include:
- Trusts can be fixed or amended without going to court.
- Ensures your reasons for creating a trust can be met.
- May settle disputes between heirs without court intervention.
- Can add or remove trustees when necessary.
- May make necessary tax changes to protect distributions.
The trust protector can do things that a trustor, trustee, or beneficiary cannot, at least not without filing an action in a court.
How to Name a Trust Protector.
First, talk to your estate planning attorney to find out if you need a trust and trust protector.
Then, consider who you would like to name as trust protector. Typically, the person chosen is an independent third party. Beneficiaries and close relatives are not good choices for this responsibility. Sometimes the trust protector will be a financial institution, a business entity, an accountant, or an attorney.
Trust documents will be drawn up and the trust will be funded. The trust protector can be named in your trust documents or you can include a provision allowing the beneficiaries of the trust to name one later.
Give your trust a little extra tender loving care. Consider safeguarding your trust – and your beneficiaries –by naming a trust protector.
To discuss your concerns with a qualified Arizona estate planning lawyer, call us at (480) 418-8448 or check out one of our free seminars. Although located in Chandler, we assist clients in surrounding communities including Ahwatukee, Gilbert, Sun Lakes, and Tempe.