Trust Protector - BOUMAN LAW FIRM

520.546.3558 BOUMAN LAW FIRM

• Home
• About Tom
• Estate Planning
  • How to Plan Your Estate (Intro FAQ)
  • Revocable Living Trust
  • Inheritance Protection Trust
  • Home Equity Protection Trust
  • Medicaid Asset Protection Trust
  • Asset Protection Planning
• Scheduling
• Fees
  • Fee Schedule
  • A Personal Note
• Articles Library
• Office Info
• New Client Forms
• Make a Payment
• Recent Law Updates
• Bouman Law Firm Blog
• Health Care Directives Registry
• Probate & Trust Administration
• Free PDF Books
• Legal Disclaimers

• Home
• About Tom
• Estate Planning
  • How to Plan Your Estate (Intro FAQ)
  • Revocable Living Trust
  • Inheritance Protection Trust
  • Home Equity Protection Trust
  • Medicaid Asset Protection Trust
  • Asset Protection Planning
• Scheduling
• Fees
  • Fee Schedule
  • A Personal Note
• Articles Library
• Office Info
• New Client Forms
• Make a Payment
• Recent Law Updates
• Bouman Law Firm Blog
• Health Care Directives Registry
• Probate & Trust Administration
• Free PDF Books
• Legal Disclaimers

Trust Protector

1. What is a Trust Protector?Many trusts name a Trust Protector who is distinct from the named trustee. A Trust Protector is essentially a disinterested person who oversees a trust and has no day-to-day responsibilities for management of the trust. Perhaps in some ways, a Trust Protector is like the board of directors of a company and a Trustee is like the CEO. The company is really run by the CEO, but the board of directors will get involved from time to time to oversee matters. But even this description is not accurate because a Trust Protector typically has no duty to get involved at all. The naming of a Trust Protector is most useful in irrevocable trusts, where it is otherwise difficult for the trust to adapt to changes in law or situation over a long period of time. The added flexibility provided by the existence of a Trust Protector could be very helpful when dealing with unanticipated scenarios. A Trust Protector is sometimes called a Special Trustee, although this is disfavored since a Trust Protector is not actually a trustee. 2. What powers are typically reserved to a Trust Protector?Depending on the need, Trust Protectors may be granted a wide variety of powers in a trust document. Here are some examples:

• The power to remove a trustee
• The power to replace a trustee
• The power to add beneficiaries
• The power to move the trust to another state or country
• The power to make corrections to a trust document
• The power to amend the trust in light of important tax law changes
• The power to approve or disapprove proposed distributions from a trust

A Trust Protector typically gets involved only when there is an extraordinary matter to address.3. Who should serve as Trust Protector?Although not technically required by any law, it is suggested that a Trust Protector always be someone who is unrelated or subordinate to the grantor or any beneficiary of the trust. This cautious approach helps prevent any claim that the Trust Protector is working in collusion with a beneficiary to hinder or delay a creditor. Certainly no beneficiary should ever serve as Trust Protector. The named Trust Protector will usually be a trusted family member, friend, or professional advisor. 4. Is it necessary to have a Trust Protector?No. Arizona law automatically builds in a significant amount of flexibility into a trust document. For example, A.R.S. Section 14-10819 permits a trustee to transfer all or part of a trust to another trust provided various conditions are met. The new trust might adjust to changes in the law that the old trust could not. This is called trust decanting in Arizona. Living trusts intended mainly for probate avoidance need not include provisions for a Trust Protector.5. Could the Trust Protector be liable for refusing to act?Arizona law specifically states that a Trust Protector is not a trustee or fiduciary. The Trust Protector cannot be held liable or accountable for an act or omission under the trust document.6. May a trust document provide for a Trust Protector without naming one?Yes, a trust document may include provisions for a Trust Protector, but defer the naming of one until necessary. In addition, a trust document may grant someone else the power to remove and replace the named Trust Protector.7. Are there disadvantages of having a Trust Protector?The inclusion of a Trust Protector may add unnecessary length and complexity to a trust document. The plan could also go wrong if the Trust Protector does not exercise good judgment. Even a Trust Protector with good intentions might make decisions that, at best, do not make sense, and at worst, create new conflict and litigation. About the AuthorThomas J. Bouman provides legal counsel in the areas of estate planning, estate administration, and asset protection. He brings a highly systematic approach to the practice of law, which is critically important when wading through the complex, and often bizarre, legal requirements associated with estate and trust law. Mr. Bouman is the author of the Arizona Estate Administration Answer Book and a prominent member of WealthCounsel, the nation’s premiere organization of estate planning attorneys. All original works on this website are:Copyright 2000-2025 by Thomas J. Bouman. All rights reserved. Seriously.