[WSBAPT] Trust Protectors

Tue Mar 5 11:15:21 PST 2024

Ann, 

I both serve as a Trust Protector and have cases where my work is overseen by a Trust Protector.  

I see them as helpful, particularly when (a) the Trustee is a non-professional or (b) the beneficiary has diminished capacity/minority.   The ability to have some genuine real-time oversight of the Trustee, without the expense of court, provides some assurances of fidelity by the Trustee.  

From the perspective of a Trustee, the Trust Protector can support the Trustee’s tough calls and be a notice party should the parent of a minor beneficiary have a potential conflict of interest.  

As Mark said: “It’s all in the drafting.”

Chris Neil | Director
253-475-8700 | f:253-473-5746 | 5306 Pacific Ave, Tacoma WA 98408

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> On Mar 4, 2024, at 11:22 AM, Mark Vohr <mcv at ohanafc.com> wrote:
> 
> 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 <mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com <mailto: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 <mailto: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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