Estate Planning- What is a Trust Protector?
The Law Firm of Pozzuolo Rodden, P.C., Philadelphia Estate PlanningLawyers, announces the release of the article “What is a Trust Protector”?
A growing trend in trust planning is the use of a Trust Protector. A Trust Protector is a person the settlor or creator of the Trust appoints to ensure that the trustee carries out the settlor’s wishes. In other words, a Trust Protector is the watchdog of the trust and trustee.
Historically, settlors appointed Trust Protectors to oversee the foreign trustees who administered their offshore asset protection trusts. Settlors would setup offshore asset protections trusts to shield their assets from the reach of the U.S. government and domestic creditors. However, in order to take advantage of the creditor protection, settlers had to appoint a foreign trustee – a person or company outside the jurisdiction of the U.S. Often a settlor would have concerns about the foreign trustee’s administration or the settlor did not like ceding complete control to the foreign trustee. Thus, the settlor would appoint a U.S. Trust Protector to oversee the foreign trustee and protect the settlor’s interests during the trust administration.
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