[WSBAPT] trust protector

Wed Jun 3 11:52:55 PDT 2020

All,

I would like to opine that the primary reason to have a Trust Protector is
if you have concerns about the Trustee(s). In my experience, a Trust
Protector only adds another layer of complexity for minimal usefulness. I
am personally opposed to legal counsel that drafts the Trust as appointing
themselves Trust Protector for several reasons; but to me it is unethical.
It can also make it difficult when a Trustor moves their situs and the
Trust Protector is in California for example and the Trustor and/or Trustee
have moved to Washington. My preference would be if you can’t trust an
individual Trustee, then an institutional Trustee would be a better and
less complex solution. Just my 2 cents as an old guy.

Sincerely,

Tom

Thomas J. Westbrook

Attorney at Law

Rodgers Kee Card & Strophy, P.S.

324 West Bay Drive NW, Suite 201

Olympia, Washington  98502

Phone: 360-352-8311

Facsimile: 360-352-8501

Email: tjw at buddbaylaw.com

Skype: thomas.westbrook

www.buddbaylaw.com

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*From:* wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
*On Behalf Of *Derek Jensen
*Sent:* Wednesday, June 03, 2020 11:14 AM
*To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
*Subject:* Re: [WSBAPT] trust protector

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

[image: New Logo.tif]

Jensen Law Office, PLLC

1833 N 105th St., Suite 301

Seattle, WA 98133

Tel: 206-547-1412

8201 164th Ave NE, Suite 200

Redmond, WA 98052

Tel: (425) 698-2214

Find us on the web at www.jensenestatelaw.com

*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      www.ohanafc.com

*From:* wsbapt-bounces at lists.wsbarppt.com <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>
*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

Web site: www.hawkeslawfirm
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