Trust Protector

The power of the “Super Trustee.”

The Trust Protector concept is a modern trust law tool, often used in conjunction with a Directed Trust, which delivers far more control to settlors of trusts, beneficiaries, and their advisors than ever before. The inclusion of a Trust Protector allows the settlor, beneficiaries, and their advisors to modify and control many important aspects of the trust and provide direction to the trustee with respect to investment management, jurisdiction, and trust distributions. Acting as a “super trustee,” the Trust Protector concept enhances the control aspects of the Directed Trust because it provides for direction or restraint of powers of the trustee.

Planning Advantages

Benefits of a Trust Protector

Adapt to Change

Protectors allow for a great degree of flexibility when dealing with changes in circumstances, including both factual circumstances (death, premature divorce, previously unknown children) and legal changes (any legal changes, but most frequently changes to applicable revenue laws).

Protect Settlor Intent

The settlor may be concerned that the trustee may not pay sufficient attention to his wishes.

Reserve Key Powers

The settlor wishes certain powers to be withheld from the trustees.

Independent Liaison

The settlor wishes a third-party to act as a main point of contact between the beneficiaries and the trustees.

South Dakota’s Trust Protector statute is among the most comprehensive in the nation, providing exceptional flexibility in defining the powers and responsibilities of a Trust Protector. You can view South Dakota Codified Law (SDCL) § 55-1B-6, which includes a comprehensive list of powers and discretions that may be granted to a Trust Protector.

Questions About the Trust Protector?

If you would like to learn more about the Trust Protector or explore other advantages available under South Dakota trust law, reach out to us through our contact form or call us at (605) 224-9189.