[WSBAPT] Trust Protectors

[Mark Vohr]

Ann –

            As a professional fiduciary, we work with trust protectors with some of our trusts.  As you know, authority for this role comes under the Uniform Directed Trust Act, RCW 11.98B.   I would not characterize the use of a Trust Protector as necessary to avoid possibly having to go to court in the future or giving away too much power but, of course, it is all in the drafting.


            This is a topic that would make a great CLE.  It is hard to cover all the uses and issues that arise under the Uniform Act, but one common use I see in our work is the use of a trust protector as an alternative to using co-trustees.   There are a number of articles out there about the challenges of having co-trustees.  Two challenging areas for us is trying to get financial institutions to work with co-trustees and the complexity of working on day-to-day trust administration when there are multiple cooks in the kitchen.  I often suggest to counsel that they ask their client why they want co-trustees and then see if the same goals can be achieved with a trust protector.

            One common goal is someone to oversee what the trustee is doing. Review accountings, review investment strategies, etc.  In some cases, a trust protector may be empowered to remove and replace a trustee, with or without cause, if the trustee is not a good fit for the particular trust.   This transition could avoid going to court when a new trustee is needed, referring to one of your scenarios.

            Happy to answer any specific questions regarding our experiences, but in sum I’d say that trust protector can be a good alternative to a co-trustee, provide some outside oversight, and avoid court for fixing trustee issues.

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 Ann Manley
Sent: Monday, March 4, 2024 11:03 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Trust Protectors

Are Trust Protector provisions necessary to avoid possibly having to go to court in the future, or do they give away too much power and are unnecessarily confusing for clients?

Ann Manley, Esq.
The Manley Law Firm, P.S., Inc.
PO Box 16324
Seattle, WA 98116
(206)292-3064 / (206)292-3914 fax
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