§2.35 Oversight of Trustee—trust Protectors

• Library: Elder Law Deskbook (2023 Ed.)

3. (§2.35) Oversight of Trustee—Trust Protectors

No matter who serves as trustee, it is recommended that there be some sort of oversight established. This becomes especially important if the trustee is not independent. At a minimum, this oversight should consist of requiring the trustee to provide settlements at least annually. Section 456.8-813, RSMo 2016, states that any such report from the trustee should be made to qualified beneficiaries of the trust. But the beneficiary of a supplemental benefit trust may not have the mental capacity to fully understand reports from the trustee. If the beneficiary has a guardian or conservator appointed for their benefit, the reports should be provided to them. But if there is not a guardian or conservator appointed, the drafter of the trust should consider granting someone else the authority in the trust document to review and question or approve these settlements. Options include the beneficiary’s family members, an independent person, a committee of people, or a court.

The power to oversee the trustee may also be granted to a trust protector (sometimes referred to as a trust advisor or some other title). This is typically a person, a committee of people, or an entity that is named in the trust document and granted clearly defined, but usually vast, powers over the trust and the trustee. These powers often...