Rose K. Wilson, of Buchanan Ingersoll, has written a white paper, which examines whether it is possible to protect trustees against claims of breach of fiduciary duty by designating other persons to perform certain fiduciary functions.
Her paper notes that the practice of dividing a trustee’s traditional responsibilities among different persons has become increasingly popular, noting the following:
For example, trust agreements are increasingly incorporating “trust protector” provisions in which a person called the trust protector is given certain powers over the trust that might otherwise be held by the trustee. A trust protector’s powers might include the power to terminate the trust, the power to modify the trust’s distribution provisions, the power to add or remove trust beneficiaries, or the power to approve the trust’s investment portfolio. Trust agreements that allocate powers among multiple persons are sometimes referred to as multi-participant trusts. Some commonly used terms for the non-trustee persons in multi-participant trusts include “trust protector,” “trust adviser,” “investment advisor” or “administrative trustee,” to name a few.
Read full article at: Trustee Liability in a Multi-Participant Trust | Buchanan Ingersoll & Rooney PC
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.