As of Trust Plus version 19, released in July, 2009, an option to add a trust protector to an irrevocable trust has been added to all modules. This language is used to appoint a trust protector and an alternate trust protector if desired, for any trusts created under the trust agreement that are irrevocable or that become irrevocable. When this phrase is selected in the revocable trust module, provisions appointing the trust protector and providing for his or her succession are added to Article One of the trust, and provisions outlining the rights and powers conferred upon the trust protector are also inserted in Article Four.

The Trust Protector language is selected in the Phrase/Document Selection area of the system:

The role of trust protector has gained popularity over the last few years as a way of adding an additional layer of protection surrounding the provisions and assets of the trust, the trustee, and the beneficiaries. The role also serves to add a degree of flexibility to any trust created under the agreement by allowing the protector to change certain terms of a trust in order to adapt to changing circumstances.

The Uniform Trust Code (UTC) ratifies the use of trust protectors in UTC section 808(b)-(d): Section (b) provides: "If the terms of a trust confer upon a person other than the settlor of a revocable trust power to direct certain actions of the trustee, the trustee shall act in accordance with an exercise of the power unless the attempted exercise is manifestly contrary to the terms of the trust or the trustee knows the attempted exercise would constitute a serious breach of a fiduciary duty that the person holding the power owes to the beneficiaries of the trust."

The trust protector provisions give the trust protector powers to direct rather than veto powers. Not only do these powers grant the trust protector the ability to remove or replace the trustee and change the trustee's powers, they also grant the discretion to change the identity of the beneficiaries and control distributions to beneficiaries. In addition, the trust protector has the right to change the situs of the trust if desirable in order to take advantage of changes in law or to act in the best interest of the beneficiaries.

Under UCT section 808(c), a person who holds a power to direct is presumptively a fiduciary and is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The provisions added by this phrase selection adhere to this section. However, they do not require the trust protector to monitor any trust, and they exonerate the trust protector from any liability, absent bad faith.

To avoid adverse tax consequences, persons filling the role of trust protector should be independent third parties. Thus, while it is advisable for the trust protector to be familiar with the grantor's estate planning and financial goals, in order to ensure impartial exercise of the powers granted and fair protection of the interests of the parties involved, the trust protector is typically not a member of the grantor's immediate family and is independent of the trustee and beneficiaries.

This language is also available in the irrevocable trust modules, as well as any time an irrevocable sub-trust is added to a revocable trust or will. Language appointing the trust protector will be added to the appointments area of the document, and a section on the trust protector powers will be added near the end of the document. The default language can be easily modified by searching for 'trust protector' in the title of phrases in Customizer.

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