Trust Protector Law and Legal Definition
A trust protector is a person appointed to protect trustees in relation to their administration of the trust. S/he directs and restrains the trustees in their trust management. A trust protector acts as an intermediary between the trust agreement, trustee, grantor, and the beneficiaries. S/he should not be related to the family with which s/he is involved in as an intermediary in any way. A trust protector has the power:
1 to remove or replace the Trustee.
2 to take advantage of law changes or necessary steps for the best interest of beneficiaries
3 to resolve deadlocks between co-trustees or beneficiaries.
4 to control spending over a certain amount.
5 to veto or withhold distributions of the beneficiaries.
6 to veto investment decisions.
7 to sue and defend lawsuits against the trust assets, and
8 to terminate the trust.