Trust Protector The Powers And Responsibilities Of A Trust ProtectorWhen presenting potential clients with different asset protection options, systems, and strategies, one of the questions asked is if I would be willing to act as their Trustee. Yes, I reply but only as a temporary basis and with a resignation letter. The temporary basis allows me to act quickly without fanfare and time consuming communications between the assets and their financial goals.
As an alternative, my answer is, "No, I don't want to serve as a Trustee, but I will gladly offer my services as the Trust Protector." The role of a Trust Protector takes up less of my time and I can educate the Trustee in his day-to-day responsibilities.
WHAT'S A TRUST PROTECTOR?
In offshore Foreign Asset Protection Trusts the role of "Asset Protector" is a standard. Offshore countries have extensive networks of Trust Companies specifically designed to accommodate the implementation of Trust Agreements with ready Trustees. The election to have a Trust Protector, who is usually a United States Person, is a normal offshore business transaction.
Although in Foreign Asset Protection Systems the role of the Trust Protector is a standard, domestically in the United States, only a few states have a legally recognized the dual existence of Trustee and Trust Protector. Those states are Alaska, Delaware, Idaho, South Dakota, and Wyoming.
The power of the Trust Protector is derived from the Trust Contract. The Agreement sets forth the dual function of the Trustee and the Trust Protector. While the Trustee can be a bank or trust company, or other financial institutions, the Trust Protector is usually a person close to the family, a CPA, accountant, or lawyer who is already the family consigliore.
THE TRUST PROTECTOR'S POWERS
The Trust Protector's powers can take any form, limited only by the wishes of the Grantor(s) and their imagination. Generally, the powers granted the Trust Protector are:
1. Ability to remove or replace the Trustee. Often this is the only power granted to the Trust Protector. In cases where the Trustee is a corporate body (bank, trust company, insurance company, or professional trustee) if the Trustee is unresponsive or not performing to the Trust Agreement for the benefit of all Beneficiaries, or changes in management, or investment choices, the Trust Protector can fire and replace the Trustee, at will, without explanation to the current Trustee.
2. Ability to change the Trust's situs to take advantage of law changes or necessary steps to act in the best interest of beneficiaries if they move from low tax states to high tax states, i.e. from California or New York (high tax states) to New Hampshire, or Nevada (low tax states) or changes in laws occurring long after the initial implementation of the Trust Agreement.
3. Ability to resolve deadlocks between co-trustees or in squabbling between the Trustee and/or Beneficiaries.
4. Ability to control spending over a certain amount. This level of control is significant if disbursements of the Trust are in excess of pre-arranged amounts requiring two signatures of the Trustee and the Trust Protector i.e. in excess of $10,000.
5. Ability to veto distributions to Beneficiaries. Before distributions are to occur the Trust Protector may want to investigate the financial stability of the Beneficiaries. For example, if the beneficiary is being sued, The Trust Protector may withhold distributions, or the Beneficiary is undergoing divorce proceedings, or the Beneficiary may be too young, is under duress, mentally incompetent, unable to manage, or otherwise unavailable. The Trust Protector can override/veto the Trustee and withhold distributions temporarily or permanently make other arrangements such as buy the assets necessary for the benefit of the Beneficiary (buy a house, a car, sign a rental agreement, but have the Trust own the assets, make loans or make other provisions.
6. Ability to veto investment decisions. This checking and balancing of investment decisions are based on the Trust Protector's experience, prudence, and the Trust Agreement guidelines in protecting the assets for the Beneficiaries.
7. Ability to sue and defend lawsuits against the Trust assets. The fiduciary duty of the Trustee and The Trust Protector as to save the assets of the Trust, at any cost, for the benefit of all classes of Beneficiaries.
|5 Good Reasons to Get a Masters
Accounting continuing education useful information
An Internet Business Education
An Overview Of The Better
Apa Continuing Education
Are Accredited Online Colleges
Business Executives Meet The Demand
Business School Excellence In Business
Changing Your Everyday Through
Comboapp Introduces Purely Scalable
Continuing Education Online
Continuing Education Something for Everyone Education
Continuing Education for Counselors Benefits
Counseling Continuing Education Requirements
Does Free Continuing Education
Experience The Convenience That
Get Finance For A Business Education
How Online Training is Changing
How To Become A Florida
Insurance Continuing Education Online LTCI
Keep Abreast Of Your Online
Learn More about Concepts
Making Or Selling Business Versus
Management Continuing Education for Professional Engineers
Massage Therapy Continuing Education Will
Mental Health Continuing Education Degree For Prevention
Mental Health Continuing Education Options
Nursing Continuing Education A Must Have
Nursing Continuing Education Courses
Nursing Continuing Education Facts Education
Online Driver Education Vs In class
Online Driver’s Education A Convenient
Psychology Continuing Education Classes
Psychology Continuing Education Courses
Psychology Continuing Education For Teachers
Reasons To Take Continuing Education
Role Of India Ngo In Imparting
Social Work Continuing Education Information
Stay Current With Nursing
The Importance Of A Quality
Using Continuing Education Loans to Help
Where Can I Get Free
Work From Home Moms And Continuing
Your Resume Education Section Top Or Bottom
All In The Family Australia Must Meet Its Obligations Bidding For The 2012 Summer Olympic Bingaman Quitting From Congress Brace For A Re rating Case Study Increasing The Popularity ( Or Votes) Celebrities And Bidets Circle Of Fame Ring Boulevard
Communicating Democrats Agenda Dr Rodney Howard Browne And The Great Election Candidates And How To Win A Election Results And Television Expect Instant Results With Gay Conservatives General Election 2010 – Castle Get Sirius With Howard Stern Hello Scott Brown Goodbye Filibuster Howard County Real Estate
New Jersey Breaks Record Obama Narrows Gap Clinton Obama Polls Can They Part 3 Asset Protection General limited Rocking The Vote Makes Everyone Win Shake The Dust From Off Thy Feet Social Bookmarking Sites Significance Sun Protection For Everyone The 2006 Elections What The Different Types Of Delaware The Followers Safe System By Rodney The Howard Stern Podcast Problem The Nation Votes To Bring Back The Potential Of Ps3 Games Console The Top 10 Most Think It Over By Rodney Trust Protector The Powers Voting Machine Voting Process What Do You Want What Happens When Individual Investors Where can I travel in South Will Healthcare Reform Cost Democrats Will The Real Barack
A Career in Restaurant Management Careers A Effective Catering Firms A Fresh Perspective towards Chinese Apple iPad for restaurants Are you looking for Buffets Boost Your Hotel Business With Reservation Boost your bottom line Business Software Adding Efficiency To Business Catering Software Makes Every Aspect of Running Celebration catering small business Entertainment Corporate Catering Ideas for Your Next Event Software gives event Get Wonderful Experience With Offsite Catering Healthy Restaurant Choices Eating Nutritious Meals Hotel Reservation Software Computers Software Hotel Reservation Software Give New Meaning Hotel Reservation Software Instant Hotel Reservation Software One Software Multiple Hotel Reservation Software One Software How To Open A Restaurant How the Catering Softwares How to Develop Your Restaurant Importance of Hotel Reservation Indian Food Restaurants Revival Kids Eat Free Restaurants Know About the Facilities One Piece of Software that any Hotel Online Hotel Reservation Software for Efficient Online Restaurant Management Career Training Options Opening A Restaurant 7 Vital Opening A Restaurant Business 3 Important Party Catering Food Premium Catering Caterer Ideas on Deciding Reasons for Buffet Catering Singapore Restaurant Catering Software Find Excellent Restaurant Restaurant POS software Fort Restaurant Reservation System A CustomerS Selecting a Fantastic Industrial Cleansing Assistance Special Upcoming Events at Restaurants The Advantages you can Get from The Popularity of Restaurant The Significance Of A Good Catering The way the Catering Softwares Are Supporting Tips About Discovering the Right Tips on How to Start a Restaurant Tourism Administration Reflects Canadas Tourism Try Catering Software in Your Catering Understand the Online Advertising Strategies for Your
Thank you to Shelley for the reminder that Howard Dean will be appearing on ABC.
All rights Reserved © 2007-2011.