Wills, Estates, Trusts & Probate
Trust Protector in Pennsylvania
A trust protector is neither a trustee nor a beneficiary. Under Pennsylvania’s Directed Trust Act at 20 Pa.C.S. § 7780.12, a trust protector is a trust director authorized by the terms of a trust to modify one or more terms of the trust. The protector’s authority comes entirely from the governing instrument and the statutory framework together. A trust protector cannot act beyond the powers the settlor chose to grant, and those powers vary significantly from trust to trust. A protector provision that is poorly drafted, ignored, or misunderstood can leave a trust without its intended governance mechanism at exactly the moment the trust needs oversight most.
Lebovitz & Lebovitz, P.A. advises trustees, beneficiaries, and trust protectors in Pennsylvania on trust administration, trust governance disputes, directed trust structures, and trust protector authority under the Directed Trust Act. These matters require reading the trust instrument carefully before any analysis of what the protector can or cannot do.
Lebovitz & Lebovitz, P.A. · Pittsburgh, PA 15218 · Serving Allegheny County and Western Pennsylvania.
The trust protector exists to solve tomorrow’s problems without requiring tomorrow’s lawsuit. A settlor who creates a multi-generational trust in 2024 cannot anticipate every circumstance that will arise in 2044 or 2064. Tax law changes. Family circumstances change. Trustees become unsuitable. Distribution standards become impractical. The trust protector is the mechanism the settlor installs to address those changes without requiring every modification to go through Allegheny County Orphans’ Court. Whether the protector can actually solve the problem depends entirely on what the trust document says the protector is authorized to do.
Illustrative example: A long-standing family trust granted the trust protector authority to remove and replace the corporate trustee. Years later, the beneficiaries became dissatisfied with the trustee’s administration and believed a change was necessary. After reviewing the governing instrument and following the required statutory procedures, the trust protector exercised the removal power and appointed a successor trustee without initiating court proceedings.
Which of these is closest to what you are dealing with?
The trust document references a trust protector but I do not know what that means for me.
The protector’s authority and your rights in relation to the protector depend on the specific powers granted in the trust document. Reading those provisions is the starting point.
The trust protector is not acting when we believe they should.
Whether a trust protector has a duty to act – rather than a discretionary power to act – depends on the trust instrument and whether the protector owes fiduciary duties under Pennsylvania law. The answer is not the same in every trust.
We want to remove the trustee and the trust protector has that authority.
A trust protector with removal authority can remove and replace a trustee under 20 Pa.C.S. § 7780.17 without court involvement, subject to the notice requirements and any limitations in the trust document.
I am drafting a trust and deciding whether to include a trust protector.
The value of a trust protector depends on the trust’s duration, purpose, and the complexity of the family situation. A protector provision that does not match the trust’s governance needs adds complexity without benefit.
The trust protector is taking actions we believe exceed their authority.
A trust protector who acts beyond the powers granted in the trust document or in violation of fiduciary duties may be subject to judicial review, removal, and liability under Pennsylvania’s Directed Trust Act.
The corporate trustee is ignoring the trust protector’s direction.
Under Pennsylvania’s Directed Trust Act, a directed trustee generally must follow the trust protector’s direction unless it would require the trustee to commit a criminal act, breach a fiduciary duty, or violate an express limitation in the trust. A directed trustee who ignores a valid direction may be in breach.
You do not need to resolve what the trust protector can or cannot do before calling. You need to know that something in the trust administration is not working and you want to understand your options under the governing instrument.
The trust protector’s authority begins and ends with what the trust document says. Pennsylvania’s Directed Trust Act provides the statutory framework, but the specific powers – and their limits – are defined by the settlor, not by the statute.
Lebovitz & Lebovitz, P.A. advises on trust protector authority, directed trust structures, and trust governance disputes throughout Western Pennsylvania. Call 412-351-4422 or schedule a consultation.
Pennsylvania’s Directed Trust Act: The New Statutory Framework
Pennsylvania enacted the Directed Trust Act as part of Act 64 of 2024, effective October 13, 2024, making Pennsylvania the 20th state to adopt the Uniform Directed Trust Act.
The Act is codified at 20 Pa.C.S. §§ 7780.11 through 7780.27. Before its enactment, Pennsylvania practitioners had been drafting trust protector provisions for years without clear statutory authority or consistent judicial treatment of whether protectors were fiduciaries and what duties they owed. The Act resolved that uncertainty by formally defining the trust protector role and establishing a statutory framework for directed trusts generally.
Under the Directed Trust Act, a trust protector is a type of trust director whose authority is defined by the governing instrument and the statute, and may include the power to modify one or more terms of the trust. That definition distinguishes a trust protector from other trust directors, who may hold powers over investment or distribution but not the power to modify trust terms. A trust protector is therefore a type of trust director with a specifically defined category of authority – the power to change the trust itself, subject to the limitations the trust document and the statute impose.
The Act is new enough that Pennsylvania appellate courts have not yet developed significant caselaw interpreting its provisions. Practitioners and clients should understand that the statutory framework is clear but its application to specific trust instruments and disputes will be developed over time through court decisions.
The Twelve Trust Protector Powers Under Pennsylvania Law
Pennsylvania’s Directed Trust Act at 20 Pa.C.S. § 7780.17 enumerates twelve specific powers that may be granted to a trust protector. These are powers the settlor may choose to include – not powers every trust protector automatically holds. A trust protector has only the powers the trust document expressly grants, subject to the statutory framework.
The twelve enumerated powers are:
- Increase, decrease, or modify what is distributable to the beneficiaries
- Terminate a trust and direct distribution of trust property
- Expand, modify, limit, or terminate a power of appointment or grant a power of appointment to a trust beneficiary
- Adjust between income and principal or convert a trust to a unitrust
- Convert a trust to a special needs trust
- Appoint or remove trustees and investment advisors and prescribe a plan of succession
- Appoint or remove trust directors and specify or modify their powers
- Appoint successor trust protectors and prescribe a plan of succession
- Renounce, release, limit, or modify any power given to a trustee
- Resolve disagreements among trustees
- Change the trust’s situs or governing law
- Apply to a court of competent jurisdiction for instructions
The settlor may expressly authorize the trust protector to take additional actions beyond these twelve. However, the statute at § 7780.17(c) imposes two non-waivable limitations: a trust protector may not exercise a power in a manner that would personally benefit the trust protector, and may not vest in the trust protector a taxable power of appointment under IRC §§ 2041 or 2514. These limitations apply regardless of what the trust document says.
Trust Protector Fiduciary Duties and Liability
Whether a trust protector owes fiduciary duties to the beneficiaries depends on the governing instrument and the nature of the powers being exercised. Under the Directed Trust Act at 20 Pa.C.S. § 7780.19, a trust director – including a trust protector – has the same fiduciary duty and liability as a trustee for the exercise or non-exercise of a power that the protector may exercise solely, and the same duty and liability as a co-trustee for powers shared with a trustee or another trust director.
Before enactment of the Directed Trust Act, Pennsylvania judges in different counties reached different conclusions about whether trust protectors were fiduciaries. The Act resolved that uncertainty by establishing a default fiduciary standard. A trust protector acting under the Act is generally a fiduciary whose exercise of powers is subject to review for breach of duty. A trust protector who acts in bad faith, for personal benefit, or in a manner inconsistent with the trust’s purposes may face judicial review and liability.
A trust protector who holds only advisory or veto powers – rather than the power to affirmatively direct – may owe a different standard of duty. The trust document remains the starting point for determining what duties apply.
Can a Trust Protector Remove a Trustee in Pennsylvania?
Yes, if the trust document grants that authority. The power to remove and replace trustees is one of the twelve enumerated trust protector powers under 20 Pa.C.S. § 7780.17. A trust protector who holds this power can remove a trustee – including a corporate trustee – without filing a petition in Orphans’ Court, subject to the notice requirements under the statute and any procedural limitations in the trust document.
Before exercising removal authority, the trust protector must provide written notice to the trustees and qualified beneficiaries of the trust unless the trust document expressly provides that no such notice is required. The protector must also ensure that a suitable successor trustee is designated. A removal that leaves a trust without a trustee or successor creates its own legal complications.
The ability to remove a trustee without court involvement is one of the most practically valuable trust protector powers. A trustee removal proceeding in Allegheny County Orphans’ Court requires a petition, notice, service on all interested parties, and a hearing. A trust protector with removal authority can accomplish the same result in a fraction of the time and cost, provided the trust document is properly drafted and the protector follows the statutory notice requirements.
When a Trust Protector Adds Value
A trust protector provision adds genuine value in specific circumstances. Long-duration trusts benefit from a protector who can respond to changes in tax law, family circumstances, or trust governance without requiring court involvement for every modification. A dynasty trust designed to last for multiple generations is the paradigm case – the settlor cannot anticipate the legal and family landscape forty years from now, and a trust protector with modification authority provides the governance flexibility to respond.
Family trusts with individual trustees who may become unsuitable over time benefit from a protector with removal authority. Rather than requiring beneficiaries to prove grounds for judicial removal under 20 Pa.C.S. § 7766, the protector can remove an underperforming or conflicted trustee through a private, documented process.
Trusts with discretionary distribution standards benefit from a protector who can modify those standards when changed circumstances make the original language impractical or harmful. A distribution standard written for a beneficiary in their thirties may not serve a beneficiary in their sixties facing retirement or healthcare needs the settlor could not have anticipated.
When a Trust Protector Creates More Problems Than It Solves
A trust protector provision drafted without careful attention to the protector’s selection, succession, and accountability can create governance problems rather than solve them. A protector who is also a beneficiary, or who is closely aligned with one branch of the family, creates a conflict of interest that undermines the protector’s utility as a neutral governance mechanism. A protector provision with no succession plan can leave a trust without a functioning protector at the moment one is most needed.
A trust protector with overly broad powers and insufficient accountability can create its own litigation. Beneficiaries who disagree with the protector’s exercise of power may challenge those decisions in Orphans’ Court, producing exactly the litigation the protector provision was intended to avoid. The more carefully the protector provision is drafted – specifying the powers granted, the limitations that apply, the succession mechanism, and the accountability framework – the more reliable the protector will be as a governance tool.
For simple trusts with clear distribution standards, short expected duration, and a competent trustee with no foreseeable conflict, a trust protector provision may add administrative complexity without commensurate benefit. The question is always whether the governance flexibility the protector provides justifies the complexity the protector provision creates.
Who Should Serve as Trust Protector in Pennsylvania?
The ideal trust protector is someone who understands the settlor’s purposes, has no conflict of interest with the trustee or any class of beneficiaries, and has the sophistication to evaluate whether a proposed exercise of protector power serves the trust’s purposes or undermines them. A trusted attorney, a neutral family advisor, a professional fiduciary, or an institutional trust company may each serve appropriately depending on the trust’s size and complexity.
A family member serving as trust protector creates the risk of conflict if that family member is also a beneficiary or is aligned with one branch of the family. The trust should address this directly by specifying whether the protector must be a disinterested party, how conflicts are to be managed, and when the protector must recuse from exercising particular powers.
The trust should also address protector succession. A trust protector who dies, becomes incapacitated, or resigns leaves the trust without its intended governance mechanism unless the document specifies how a successor is to be appointed. Pennsylvania’s Directed Trust Act at § 7780.17 allows the trust protector to appoint successor protectors and prescribe a plan of succession, but only if the trust document grants that authority.
Can a Beneficiary Force a Trust Protector to Act?
Usually not merely because the beneficiary disagrees with a trustee’s decision or believes a change would be beneficial. The analysis depends on the trust instrument and the nature of the protector’s powers.
A trust protector with discretionary authority to act is different from one with a mandatory obligation to intervene. A protector who holds a discretionary power may choose not to exercise it without necessarily breaching a duty. However, a protector who holds a fiduciary obligation and fails to act in circumstances where action is clearly warranted may face scrutiny in Orphans’ Court. Whether a beneficiary can compel protector action requires reviewing the trust document, the specific powers granted, the duties the protector owes under the governing instrument and Pennsylvania’s Directed Trust Act, and the circumstances that have arisen. A protector who is a fiduciary and who ignores a clear governance failure in the trust may not be able to rely on pure discretion as a complete defense.
When to Consult an Attorney About Trust Protector Issues
Contact Lebovitz & Lebovitz, P.A. if any of the following describe your situation: you are a beneficiary and the trust document references a trust protector whose role and authority you do not understand; you are a trustee and the trust protector is directing you to take an action you believe exceeds the protector’s authority or violates your fiduciary duties; you are a trust protector and you want guidance on whether a particular exercise of power is within your authority and consistent with your fiduciary obligations; you are a settlor or estate planning attorney considering whether to include a trust protector provision and what powers to grant; or you are a beneficiary and you believe the trust protector is failing to act when circumstances warrant intervention.
The Directed Trust Act is new Pennsylvania law and its application to specific trust documents and disputes will continue to develop. An attorney familiar with both the statutory framework and Pennsylvania trust administration practice can evaluate the trust document, the parties’ positions, and the available options before any action is taken.
Frequently Asked Questions About Trust Protectors in Pennsylvania (FAQ)
What is a trust protector in Pennsylvania?
Under Pennsylvania’s Directed Trust Act at 20 Pa.C.S. § 7780.12, a trust protector is a trust director authorized by the terms of a trust to modify one or more terms of the trust. The protector is neither a trustee nor a beneficiary and holds only the powers the trust document expressly grants, subject to the statutory framework established by Act 64 of 2024.
Can a trust protector remove a trustee in Pennsylvania?
Yes, if the trust document grants that authority. The power to remove and replace trustees is one of the twelve enumerated trust protector powers under 20 Pa.C.S. § 7780.17. A trust protector with this authority can remove a trustee without court involvement, subject to the notice requirements under the statute and any procedural limitations in the trust document.
Does a trust protector owe fiduciary duties in Pennsylvania?
Generally yes. Under 20 Pa.C.S. § 7780.19, a trust protector has the same fiduciary duty and liability as a trustee for powers the protector may exercise solely. Before the Directed Trust Act, Pennsylvania courts reached different conclusions on this question. The Act established a default fiduciary standard that applies unless the trust document provides otherwise.
Can a trust protector override a trustee’s distribution decision?
It depends on the trust document. If the trust grants the protector the power to increase, decrease, or modify distributions, or the power to direct or veto trustee decisions, the protector may be able to intervene in a distribution dispute. If the trust does not grant those specific powers, the protector cannot override a distribution decision simply because the protector or beneficiaries disagree with it.
What happens if a trust has no trust protector?
A trust without a protector is administered solely by the trustee, subject to the statutory framework and judicial oversight through Orphans’ Court. Modification, trustee removal, and governance changes must go through the court process under Pennsylvania’s Uniform Trust Act rather than through a private protector mechanism. Many older trusts predate the widespread use of trust protector provisions and function without one.
Can a corporate trustee refuse to follow a trust protector’s direction?
In limited circumstances. Under Pennsylvania’s Directed Trust Act, a directed trustee generally must follow a trust protector’s direction unless doing so would require the trustee to commit a criminal act, breach a fiduciary duty, or violate an express limitation in the trust. A directed trustee who refuses a valid direction without legal justification may be in breach of its own duties under the Act.
Is a trust protector the same as a trust advisor?
Not necessarily. Trust advisor, trust protector, and trust director are terms that may be used interchangeably in some trust documents but have distinct meanings under Pennsylvania’s Directed Trust Act. A trust protector under § 7780.12 specifically has the power to modify trust terms. A trust advisor or trust director who holds only investment or distribution powers, without the power to modify trust terms, is not a trust protector under the Act’s definition. The governing instrument controls what role and powers the person actually holds.
For related issues see our pages on trust beneficiary rights in Pennsylvania, trustee removal in Pennsylvania, trustee breach of fiduciary duty, modifying an irrevocable trust in Pennsylvania, and co-trustees in Pennsylvania.