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Florida Probate Litigation & Trust Protectors

Uncategorized Oct 18, 2018
post about Florida Probate Litigation & Trust Protectors

What is a trust protector? What should West Palm Beach estate lawyers know about trust protectors? Can a trust protector amend an Orlando trust? When are trust protectors present in trust lawsuits? A “trust protector” acts to restrain and guide a trustee of a trust in its administration. How do trust protectors change trust litigation and trust administration in West Palm Beach?The term “trust protector” is much more common in off shore or foreign trusts. Usually a settlor would be weary of trusting a private trust company to oversee their entire trust in a foreign country. But, that country usually had favorable laws such that it was good for the wealth to be over there. Family trusts would use something known as a protector to aid the trustee in administration. This also created a sort of private dispute resolution mechanism for these trusts as the protector could help iron out any disputes between trustees and beneficiaries. In fact the protector of the trust may be able to appoint a new trustee! Why appoint a trust protector?

You should read the 2014 case of  Minassian v. Rachins (Fla. 4th DCA December 3, 2014).In this case the settlor named his Florida estate planning attorney as his protector because that man knew his intent. The settlor knew that his children may not be thrilled with his plans for his wealth, especially one estranged daughter. The children filed a lawsuit against the wife after the man’s death (like he predicted) alleging she had breached her fiduciary duty in administering the trust. When the trial court ruled in favor of the children, the wife did something tricky. The wife pulled out the trust protector and told him to rewrite the trust to match her objectives prior to the litigation. And it worked! The Fourth DCA held that it was legitimate and proper under Florida law.  Do you agree? To read the entire case, click here.