Structuring Trust Protector Provisions: Protectors' Powers and Duties, Trustee Oversight, Tax and Fiduciary Risks

Avoiding Unintentional Fiduciary Classification, Key Trust Provisions to Limit Disputes, Navigating State Differences

A live 90-minute CLE/CPE video webinar with interactive Q&A

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Tuesday, October 11, 2022

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

(Alert: Event date has changed from 8/31/2022!)

or call 1-800-926-7926

This CLE/CPE course will provide estate planning counsel and advisers with a practical guide to structuring trust protectors and directing party provisions into a trust or estate plan. The panel will discuss the specific duties to assign to trust protectors and potential risks to both the trustor and the protector and detail jurisdictional challenges in determining when to use a trust protector.

Description

Estate planners and trust counsel are increasingly using trust protector provisions in trust documents to preserve the intent of the maker of the trust and resolve disputes between trustees and/or beneficiaries. Trust protector provisions are especially useful in trusts with longer terms.

However, there are variances among states as to the treatment of trust protectors. Estate planning counsel must be aware of tax and fiduciary risks in drafting the provisions to avoid costly consequences.

Trust protectors must oversee the operation of the trust and the actions of the trustees. In some jurisdictions, trust protectors can modify trusts, make elective distributions, change the trust's situs, and replace the trustee. While no state law defines a trust protector's powers, there are restrictions and consequences if the powers are not properly structured.

Estate planning counsel must use caution in drafting trust agreements, identifying the trust protector's powers, and designating the extent to which a trust protector serves as a fiduciary.

Listen as our panel of trust and estate planning attorneys provides thorough guidance for structuring trust protectors or directing party provisions in estate plans.

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Outline

  1. Trust protector powers related to oversight of a trustee
  2. Powers that may be granted to trust protectors related to operation or modification of trust terms
  3. Determining whether a trust protector is a fiduciary
  4. Trust protector powers that may cause gift or income tax inclusion or loss of GST exemption
  5. Drafting effective trust protector provisions to avoid disputes

Benefits

The panel will review these and other relevant topics:

  • Uniform Trust Code's position that a trust protector is a fiduciary unless the trust document specifies differently
  • The Uniform Directed Trust Act's position that a trust protector is subject to the same fiduciary duty as a trustee in the same position
  • What trust protector duties or actions can result in gift or income tax consequences?
  • What are the risks of using trust protectors to either the trust or the beneficiaries?
  • What powers may a trust document grant a trust protector, both in terms of overseeing the trustee's actions and modifying the terms of the trust?
  • Best practices and key trust provisions to avoid unintended consequences

Faculty

Braverman, Diedre
Diedre Wachbrit Braverman

Attorney
Braverman Law Group

Ms. Braverman practices in the areas of estate planning, special needs planning, asset protection, elder law and...  |  Read More

Brown, Cynthia
Cynthia D. M. Brown, J.D., TEP

President
Commonwealth Trust Company

Ms. Brown focuses in the areas of trust administration, estate planning and tax. Her responsibilities include oversight...  |  Read More

Attend on October 11

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Cannot Attend October 11?

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

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