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History of Trust Protectors

Posted on: January 27th, 2017
trust protector historyA trust protector is an individual or party that may be granted specific authorities over the trust. Still relatively new to domestic trusts, trust protectors can be traced back to early implementation in offshore trusts. Their popularity in domestic asset protection has grown as awareness has escalated of trust protector benefits and the flexibility they provide.

Brief Timeline of Trust Protectors
 
Pre-1997 – Use in foreign trusts

1997 – Alaska becomes the first state to recognize the use of trust protectors in domestic asset protection legislation. (Alaska Trust Act, ALASKA STAT. §§ 34.40.110, 13.36.370 Trust Protector). Delaware passed similar legislation on July 1, 1997.

1998 – 2016 – Nearly two dozen states enact or clarify legislation pertaining to trust protectors

Trust protectors provide a simplified and less time-intensive means for trust modification, trustee replacement, tax situs changes, and other trust administration matters. When long-term administration costs and concerns are considered, appointing a trust protector could generously minimize expenses and prevent delays. While the use of a trust protector is most advantageous in a trust intended to last for multiple generations, provisions can also be effective for trusts with shorter terms.

Our trust attorneys provide more about the history of trust protectors in our latest complimentary legal guide. The guide also identifies the unique powers granted to protectors, controversy surrounding a trust protector’s fiduciary and non-fiduciary duties, best practices for trust protectors, and how to optimally choose a trust protector.
 
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