Trust Protectors: An Essential Safeguard in Modern Special Needs Planning

Written by: Connor Kavanaugh, Special Needs Planner

Updated December 4th, 2025

Choosing a trustee is one of the most important decisions a donor makes when establishing a special needs trust. Trustees handle the day-to-day operations of the trust: managing investments, paying bills, and making distributions that support the beneficiary’s quality of life. It’s a critical role, and families often ask the same question: how do we ensure the trustee continues doing the right job long after the donor is gone, especially if the beneficiary cannot monitor the trustee’s actions?

This is where a trust protector can play a vital role.

What Is a Trust Protector?

A trust protector is someone the donor names to provide oversight, accountability, and continuity. While the trustee administers the trust, the trust protector serves as an independent safeguard—an extra set of eyes to make sure the trustee is managing the trust properly and in the beneficiary’s best interest.

A trustee serves in a fiduciary capacity, meaning they have a legal obligation to act loyally, prudently, and solely for the beneficiary’s benefit. But in many special needs situations, the beneficiary is not able to enforce these duties or even recognize when something has gone wrong. A trust protector fills this gap.

What Can a Trust Protector Do?

Depending on how the trust is drafted, a trust protector may have one or more key responsibilities:

• Review the trustee’s accounts, records, or annual reports

• Request financial statements or explanations from the trustee

• Confirm that distributions are being made appropriately

• Ensure the trustee’s fees are reasonable and aligned with the trust’s terms

• Require corrective action when something is not handled properly

• Remove a trustee who is not acting in the beneficiary’s best interest

• Appoint a successor trustee when needed (typically someone independent)

The trust protector does not manage day-to-day operations but instead provides high-level supervision and intervention authority. Their job is to ensure the trust is being run the way the donor intended.

A Real-World Example

Consider Jennifer and her son, Adam. Adam has a disability, and Jennifer wants to make sure he can remain in the family home for as long as possible after she passes away. She creates a special needs trust, plans to transfer her home into it when she passes, and sets aside funds for property taxes, maintenance, and household expenses.

Jennifer knows her niece Margaret cares deeply about Adam but does not want the responsibility of actively managing a home. Instead, Jennifer appoints her friend John—who knows Adam well and runs a property management company—as trustee. John handles the operations, maintenance, and financial management.

To ensure accountability, Jennifer names Margaret as the trust protector. Margaret reviews John’s annual reports, confirms the fees are appropriate, and makes sure the home is kept in good condition. She doesn’t handle the work—she simply ensures it is done well. This structure gives Adam long-term stability, gives Jennifer peace of mind, and prevents future conflict.

Should Every Special Needs Trust Have a Trust Protector?

Not always. Some trusts, especially those where the donor is the initial trustee, may not need a trust protector right away. But over time, as trustees change and family circumstances evolve, a trust protector provision can become incredibly valuable.

Families may want a trust protector when:

• The beneficiary cannot advocate for themselves

• The trustee is a professional or corporate fiduciary

• The trust owns a home or other complex assets

• Multiple family members are involved but only one is trustee

• There is concern about future oversight, transitions, or continuity

Adding a trust protector provision does not complicate the trust—rather, it strengthens it.

The Bottom Line

Trust protectors provide long-term security and peace of mind. They help ensure the trustee stays aligned with the donor’s intentions, the beneficiary’s needs are met, and the trust is managed responsibly for years to come.

If you’re preparing or reviewing a special needs trust and wondering whether a trust protector should be included, Palladio Consulting LLC can help you evaluate your options and design an oversight structure that supports your loved one’s long-term well-being.