[WSBAPT] trust protector

[Derek Jensen]

Roger,

It is most common for me to use them for tax issues in longer-term or specialty irrevocable trusts.

However, they can be used in many situations, to list a few:


  *   Increased peace of mind - if the grantor can't act due to incapacity or death - the trust protector can.
  *   More flexibility and confidence - limitations in the trust, state law, or tax code may prevent the grantor from changing the trust to, for example, change the trustee or alter the distribution provisions for a beneficiary.
  *   Long-term protection of the trust assets - circumstances change, how do we address the fact that the beneficiary in a stable marriage may be going through a divorce? Other issues that could be addressed, the incapacity of a beneficiary, extravagant spending, or lawsuits.
  *   Oversight and support of the trustee - as Mark described.
  *   Easier resolution of disputes - between co-trustees, a trustee and a beneficiary, or between beneficiaries.
  *   As an alternative to TEDRA for modifications and amendments.

Sincerely,

Derek W. Jensen, JD, LLM
Managing Attorney


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Jensen Law Office, PLLC
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Tel: 206-547-1412

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Mark Vohr
Sent: Monday, June 1, 2020 10:23 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] trust protector

Roger - As a professional trustee we have been seeing the instance of the use of trust protectors increasing over the last couple of years.  I would say that we see them in about 10% of our trusts.  It certainly would be a useful discussion to identify when one makes sense and where one does not.  From the trustee's perspective, I don't particularly care whether we have one or not, although I do like to see them involved in a trust where the permissible distributee is challenged in their ability to review and understand an accounting and where there is no guardian.  If counsel asks us, we are generally supportive of this appointment, particularly over the use of a co-trustee which can be more challenging administratively, particularly when the only reason for having a co-trustee is to monitor.

The only possible negative is that the appointment of a trust protector could increase the cost of administering the trust.  Some trust companies work by the hour.  Choosing an appropriate and effective trust protector could help manage this cost.  In selecting a trust protector, it may be helpful to consider the reason there is a trust (the fundamental intent of the trust) and find a good match who understands that intent and the trustee's fiduciary duty.

Regards,

Mark

Mark C. Vohr, Esq.
Ohana Fiduciary Corp.
Ohana Financial Services
A Washington Trust Company
Mark C. Vohr, J.D., CPG, Principal
PO Box 33710  Seattle, WA  98133
T:  (206) 782-1189 F:  (206) 782-1434
mcv at ohanafc.com<mailto:mcv at ohanafc.com>      www.ohanafc.com<http://www.ohanafc.com>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Roger Hawkes
Sent: Sunday, May 31, 2020 2:50 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] trust protector

Just curious: under what circumstances, and how frequently, do the rest of you include trust protectors in your estate plans?

Roger Hawkes, WSBA # 5173
Shoreline Office: 19944 Ballinger Way NE
                                Shoreine, WA 98155
Sultan Office:        423 Main
                                 Sultan, WA 98294

Phone: 206 367 5000; fax: 206 367 4005
Email: roger at law-hawks.com<mailto:roger at law-hawks.com>
Web site: www.hawkeslawfirm<http://www.hawkeslawfirm>


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