[WSBAPT] trust protector

Wed Jun 3 12:27:09 PDT 2020

I agree with everything that Tom said. I have used Trust protectors where an institutional Trustee is being appointed and the client wants a family member to have oversight of the institutional trustee on behalf of the incapacitated family member. They can receive accountings, budgets and advocate for the needs of the family member.
Jane.

Jane G. Bitz
Of Counsel
Wolff, Hislop & Crockett, PLLC
12209 E. Mission Ave, Suite 5
Spokane Valley, WA 99206-4824
(509) 927-9700 x126
FAX: (509) 777-1800

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Tom Westbrook
Sent: Wednesday, June 3, 2020 11:53 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] trust protector

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

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Rodgers Kee Card & Strophy, P.S.
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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 Derek Jensen
Sent: Wednesday, June 03, 2020 11:14 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto: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

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Jensen Law Office, PLLC
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Find us on the web at www.jensenestatelaw.com<http://www.jensenestatelaw.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 Mark Vohr
Sent: Monday, June 1, 2020 10:23 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto: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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