Bloomberg BNA Daily Tax Report Quotes Perspecta Trust Principal on Trust Protectors

Trust Protector’s Right to Wield Superpowers Gets Nod from State Courts
by Diane Freda
Bloomberg BNA Daily Tax Report, July 27, 2015

The trust protector role has traditionally been fairly limited, but some people have ‘‘gotten a little creative or cute with it,’’ a principal with Perspecta Trust LLC., Todd Mayo, told Bloomberg BNA on
July 20. Some trust protectors are taking on more of the function of a trustee, he said.

‘‘I have seen trust agreements in which the trust protector has the power to direct the trustee concerning investments. That means the trust protector has been vested with the investment power. And if you add on the distribution powers, now you’re really looking at a role that—even though it is called trust protector—has all the hallmarks of a trustee,’’ he said. That may not be the optimal design, he added.

Read the full article.