[WSBAPT] Attorney as Trust Protector

[Mark Vohr]

Heather -

            I thought I would respond because we see a lot of trusts with Trust Protectors.  Generally, we see several common roles for a TP.  One is to provide general oversight of the activities of the trustee.  A second is to remove and replace the trustee, and a third is to review accountings on behalf of a beneficiary who may be compromised for one reason or another from being able to review accountings on their own behalf.    We also have trust protectors who review non-routine distribution or other special circumstances.

            Often a TP is a trusted family member, but sometimes we see attorneys, CPAs and even other professional trust companies.  Ohana serves as a trust protector on a number of trusts where we are not the trustee, and I can think of one trust we have where Guardianship Services of Seattle is the Trust protector.

            From my perspective, a TP is a great alternative to having a co-trustee.  Co-trustees can present challenges with financial institutions and increase the cost of basic trust administration just due to logistics of signing, authorizing, etc. even in the case of routine matters.  TP do not pose any of these problems and can often accomplish the same goals.  I suggest that when a client says they want to be co-trustee, ask them why and see if the same goals can't be accomplished with a TP.

Of all the different trust protectors we see, attorneys tend to be in a minority.  There is a variety of reasons for this that I think we can all speculate on, but I have heard concerns over liability (even when there is a release of liability) conflicts of interest issues, and sometimes cost.  I would think an attorney who is often appointed as a GAL by the court to review an accounting for a minor or disabled beneficiary would be a good choice for this as they are used to reviewing the accountings typically produced by professional trust companies.

            Hope this helps.

Regards,

Mark

Mark C. Vohr, J.D. CPGC
Ohana Fiduciary Corporation
A Washington Trust Company
155 NE 100th St., Suite 209
Seattle, WA  98125
Telephone:  (206) 782-1189

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Heather de Vrieze
Sent: Tuesday, August 22, 2023 12:25 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Attorney as Trust Protector

I'm curious as to whether any of you serve in the role of Trust Protector for clients. I generally understood this to be a good role for a trusted family member who was not serving as trustee, but could still exercise some oversight, often when there is a professional fiduciary involved.

Thoughts?

Heather

Heather S. de Vrieze
Attorney-at-Law
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