When estate planning, there are many different terms used. Many of these terms refer to the people who will control, manage, and distribute a person’s estate after they have passed away. It is critical to understand what these terms mean so one can make informed decisions when planning for their estate. Below, our Nevada estate planning lawyer explains three important terms that refer to the status people hold when handling a decedent’s affairs.
Trust Protectors
Trust protectors are third parties who are given the authority to protect the terms of a trust. Trust protectors are commonly named when people plan for offshore asset protection, although they have recently become more common in planning for onshore asset protection. The authority and power of a trust protector are included in the terms of the trust itself. Most commonly, a trust protector’s power is the authority to remove a trustee who is not administering the trust according to the provisions of the trust, or who is not properly responding to the needs of the beneficiary. After removing a trustee, the trust protector also has the authority to replace them.
Trust protectors may also have the authority to transfer the assets within a trust, invest the assets of a trust in a new trust, or make technical adjustments to an irrevocable trust. Other powers given to trust protectors are as follows:
- Tie-breaking powers when there are disputes between co-trustees
- Veto decisions made pertaining to investments
- Change the terms of the trust in the event that there are unforeseen circumstances such as changes in the law, divorce, or irresponsibility
- Terminate the trust
- Resolve disputes that arise between trustees and beneficiaries
Trust Advisers
Individuals and committees provide trustees with necessary information regarding the needs of the beneficiaries as well as oversight of the trustee’s administrative services. Trust advisers have a fiduciary duty and as such, they may have the authority to direct the trust’s special assets or investments. Trust advisers are not trustees but they may still have certain control or power over the administration of the trust.
Trust advisers do not have any right to the assets within a trust. Furthermore, the law does not dictate the powers of the adviser. Instead, these powers are outlined in the provisions of the trust. The provisions of the trust should be very specific about the responsibilities of the adviser when dealing with the beneficiaries and trustee, the rights and responsibilities of the trustee when dealing with the adviser, and the rights of the beneficiaries when dealing with the adviser and trustee.
A trust adviser may also have certain powers and authority, including:
- Consulting with the trustee about general investment policy
- Advising the trustee with respect to the selection of property for sale retention, purchase, and transfer if the adviser deems it appropriate or necessary
- Advising the trustee with respect to the retention, selection, and evaluation of life insurance policies
- Remove the trustee and replace them with a successor trustee
- Designate an investment adviser to advise the trustee about the investment of property held within a trust
- Order the property within a trust to be transferred, or transfer the administration of the trust
Special Fiduciaries
Under NRS 140 in Nevada, the court may appoint a special administrator to collect and control someone’s estate after they have passed away. This individual may also have the authority to exercise the necessary powers to preserve the estate. These powers may be granted in certain situations, including when:
- There is a delay granting letters of administration or letters testamentary
- Letters are not granted regularly
- There is not a sufficient bond filed, as the court requires
- No petition for letters is filed
- An administrator or executor passes away, or is removed or suspended and under the circumstances, an immediate appointment is necessary
- There is no property that requires administration but there is reasonable cause to appoint a personal representative of the decedent
- In any other case where there is just reason
Our Nevada Trust Administration Attorney Can Help with Your Case
There are many different terms when estate planning and it is critical to understand what these are so you can ensure your final wishes are respected. At Boyer Law Group, our Nevada trust administration lawyer can provide the legal advice you need and explain the different elements involved so you can make the decisions that are right for you. Call us now at 702-255-2000 or fill out our online form to request a consultation with our experienced attorney and to learn more about how we can help.