It may be apparent to you that you must name a loved one as the beneficiary to inherit the funds within your established trust. But since this inheritance is to take place when you are sadly no longer around, you must call on other individuals to handle this transference. This is where a trustee and a trust protector may come into play. With that being said, please read on to discover the difference between a trustee and a trust protector and how a seasoned Broward County trust lawyer at The Probate Lawyers can help you determine which roles you need to assign and to whom.
How is a trustee different than a trust protector?
On the one hand, a trustee is an individual, or possibly even an institution, responsible for administering your trust according to your established trust document and the state of Florida’s estate laws. In this way, they act in your best interests, as the trust’s grantor. And since your trust is meant to benefit your designated beneficiary, they subsequently act in your beneficiary’s best interests.
On the other hand, a trust protector is a third-party individual charged with overseeing the trustee’s actions. So, they check that the trustee is indeed following the terms and conditions set out by your trust documents and state laws, all while ensuring your and your beneficiary’s needs are being met throughout.
Do I need to appoint both a trustee and a trust protector?
While you always need to assign a trustee to your trust, a trust protector may be a voluntary position to fill. Whether you appoint a trust protector may depend on the circumstances surrounding your estate plan, and where your primary concerns lie.
For example, let’s say you worry that your trustee will be unable or unwilling to fulfill this role one day. This may be because you have heard their plans of moving to a different, far away state when they retire. Or, you may know about their family history of dementia. Either way, it may better serve you to name a successor trustee rather than a trust protector. This is because a successor trustee essentially acts as a backup to take over the management of your trust if your original trustee passes away, becomes incapacitated, or otherwise becomes unable to fulfill their duties. Basically, they ensure the trust continues to function smoothly should anything go awry.
Contrastingly, though, say that your estate plan is rather complex, and you fear that future changes to Florida’s estate laws may disrupt its validity and enforceability. On top of this, you may acknowledge that your assigned trustee is not particularly legally savvy. Well then, you may want to name a trust protector in this case. This is because they may hold the power to take over for your trustee if they find it necessary to adapt your trust’s provisions to the evolving legal changes that affect it directly.
There is no sense waiting any longer if you already know you wish to establish a trust document. So please reach out to a competent Broward County estate lawyer from The Probate Lawyers today.
