Monday, January 10, 2011 NEET Tips
NEET Tips answers questions posed online to the NEET website
Can a trust protector also be a Trustee?
Yes, but it would be a bad idea. One role that some Trust Protectors, also known as a Trust Advisors, have is to remove and replace a Trustee under various circumstances. If the Trustee and Trust Protector are the same person, that oversight role would be lost. Additionally, Grantors often try to prevent trust assets from being included in the Trustee’s or Trust Protector’s taxable estate, which would be far more difficult if standard Trust Protector powers were added to standard Trustee powers. In short, these are distinct roles that should be kept separate. Merging them in the same person would likely cause ramifications in many other areas of the trust agreement that would be undesirable to the Grantor, the Trustee and the Trust Protector.
For more information on Trust Protectors, see the article:
Building Flexibility Into Estate Plans with Trust Protectors |