Articles Posted in Business structuring

Trust Protectors: An Extra Layer of Protection

Traditionally, a trust has three main participants, a settlor, a trustee, and one or more beneficiaries.  A settlor creates and/or contributes property to the trust.  A trustee manages and holds the property in the trust for the benefit of other people who are said to have a “beneficial interest” in the trust.  Beneficiaries are the people who have those beneficial interests.  For example, a father, acting as a settlor, might create a trust, naming his wife as the trustee, to distribute money for the benefit of their children, who are the beneficiaries of the trust.  However, a fourth participant has increasingly been used in trusts: the trust protector.

Historically, trust protectors were mainly used in offshore trusts and rarely in domestic trusts.  A trust protector acts as an extra layer of protection for the settlor.  A trust protector is customarily appointed to supervise the trust and ensure that the settlor’s intent is effectuated.  A trust protector may have the power to modify terms of a trust to ensure that the settlor’s intent is carried out.

When Wills Mean Business: Planning for Your Business’s Future

Planning for the future is not only necessary in your personal life, but also in your professional life, especially if you either own a business or invest in a business.  Putting an estate plan in place early on, and keeping it updated to reflect changes in the business, can protect your business in the event of your death.  Two South Florida examples illustrate the necessity of planning ahead for your business.

In November 2015, Pebb Enterprises LLC, based in Boca Raton, suffered the loss of two of its managing principals and five employees in an airplane crash.  The plans put in place by the principals kept the company in business after the devastating event.  In contrast, after the death of its president, Naples based Vantage Lighting was undervalued and dissolved, because the president died without a will.

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