What is a Trust Protector and Why is it so important?

A trust protector is a valuable role that can be included in many trusts. The concept started first in offshore trusts and has become more commonly used in domestic US trusts for many years. Primarily it has been used in complex or more sophisticated tax oriented trusts but its use can extend well beyond that. A trust protector can be a valuable safeguard or check and balance on the trustee. If you as a beneficiary believe the trustee is not performing properly, or worse, stealing money, you would have to hire your own lawyer and sue the trustee. That is costly and often not simple. The trustee can use trust funds to defend against your attack. If instead you name a trust protector that person could remove and replace the trustee and avoid that costly legal battle.