Probate & Trust Law Section Conference Manual ... - Minnesota CLE

. The standard of care that applies to the trust protector varies depending on
the power granted and to whom the power is granted to.
c. A fiduciary power must be exercised in good faith, with regard to the
purposes of the trust and the interests of the beneficiaries. (Alternative –
must be exercised in accordance with the same duties that would apply to
a trustee who has the same power that is granted to the trust protector.) A
trust protector who breaches its fiduciary duty is liable for the breach.
Fiduciary powers include:
i. Power to interpret or enforce the trust.
ii.
iii.
iv.
Power to correct errors or ambiguities in the trust instrument.
Power to review and approve accounts.
Power to resolve disputes.
v. Power to consent to or veto distributions.
vi.
Power to consent to or veto investment decisions.
d. A non-fiduciary power must be exercised in good faith. A trust protector
who breaches this standard is liable for the breach, including any breach
by a party over whom a trust protector has a power of removal. Nonfiduciary
powers include:
i. Power to remove, replace or appoint a trustee, trust protector or
directing party.
ii.
iii.
iv.
Power to modify or amend the trust instrument to respond to changes
in state law or tax law.
Power to modify or amend the trust to achieve a different tax status
or to make certain tax elections.
Power to change the place of administration, governing law or tax
situs.
v. Power to modify powers of appointment.
vi.
vii.
Power to terminate the trust or decant the trust to a new trust.
Power to advise the trustee on matters involving a beneficiary,
including whether to provide a beneficiary with information
regarding the trust.
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