Should a Trust Protector be compensated and if so, How?

Should a trust protector be compensated? Maybe. As with so many issues and decisions in estate planning it depends on the context. Most trust protectors serve in a reactive mode. They only get involved when someone involved with the trust, the trustee, a beneficiary or another powerholder asks them to get involved. For example, state tax laws change and it is preferable to move the trust to a new and lower or no tax state. The CPA may request the trust protector to change situs and governing law. But do you want the protector to be reactive or regularly proactive. For example, a trust protector in some applications is intended to monitor the trustee and operations of the trust to serve as a check and balance on the trustee. In that context perhaps the trust protector should be compensated. So it depends on the role you want the protector to serve in. Also, too often family members think other family members should serve in various capacities and not be paid. That can be a mistake. It is often better to pay someone, including a trust protector, so that they take their role seriously and give it the attention and time it deserves.