How To Help Your Children And Grandchildren Actually Keep & Optimize What You Leave Them
If you’re reading this, chances are you’ve spent decades building something substantial:
- A valuable but closely-held business
- A successful professional practice
- A portfolio of real estate and/or diversified investments
- Or some combination of the above
Like many of our Pennsylvania clients, you’re not just thinking about who gets what when you’re gone. You’re thinking:
“Will my children and grandchildren be able to keep it…
or will it disappear in a divorce, lawsuit, or because of a bad decision?”
Traditional wills and trusts do a good job answering “who gets what.”
Where they often fall short is answering:
“What happens when laws, taxes, or my family’s circumstances change ten, twenty, or fifty years from now?”
That is where trust protectors come in.
Because our culture, society, laws, tax law, and your personal circumstances are changing so rapidly (almost chaotically), we decided to give you a deeper dive into how trust protectors work, who should act, and why your estate planning may really need or benefit from one or more trust protectors.
Let’s start with a definition…
A trust protector is an independent person, committee, or entity named in your trust (and or will) with carefully defined powers to adjust and strengthen the trust over time - without your heirs having to go to the probate court (which is expensive and public).
If you think of your trustee as the chief executive and/or chief operating officer of the trust, then the trust protector is more like the board of directors - not involved in daily operations, but empowered to step in and make strategic changes when needed.
For Pennsylvania families with estates of even $1 million or $2 million and above - especially those using trusts to protect children and grandchildren from divorce, lawsuits, and creditors - a trust protector is no longer a “fancy add-on” but an essential part of effective planning.
So, if you’ve been waiting to update your will for many years, or you have older revocable or irrevocable trusts, reviewing them for trust protector provisions and modernizing updates is vital. See below for more on how to do that.
But now, more on how and why to get the advantages and major benefits of Trust Protectors…
The Hidden Problem With Otherwise “Good” Estate Plans
Most estate plans fail, not because they were done badly, but because they were drafted for one moment in time and the never updated and or they become outdated.
You and your lawyer sat down, looked at: The tax laws that year, Your children’s marriages as they looked then, The current creditor and divorce laws, The trustees and banks that seemed solid a that moment.
Then you signed documents meant to last 25, 50, or even 100+ years.
But so much changes over that time:
- Federal estate tax exemptions move from hundreds of thousands to many millions - and could drop again in a future administration.
- Capital gains taxes might now matter more than federal estate taxes.
- Pennsylvania inheritance tax remains, but how we plan for it evolves.
- Divorce law and how courts treat trusts in equitable distribution cases continues to expand and shift.
- Creditor and bankruptcy law changes in ways that may give creditors access to trusts unless they are updated and adapted.
- Banks merge. Trustee fees go up. Service goes down.
- Children move to no-tax states. Grandchildren are born.
- Someone develops a disability or has a special need. Another owns a risky business.
Yet, the trust language (without a trust protector or expensive court intervention) stays frozen in time.
What we’ve learned over nearly forty years of seeing trusts succeed and trusts that fail is simple:
Flexible documents with the right checks and balances work better than “perfect” documents frozen in time.
Creating documents with customized Trust Protectors and protector provisions is how we have been building that flexibility in from the start.
What Exactly Does a Trust Protector Do?
While Pennsylvania law does not specifically provide for Trust Protectors, you DO have broad freedom to define the terms of your trust. That includes the power to create an independent role the trust protector and to give that role specific powers such as the ability to:
- Remove and replace trustees
- Change the trust’s situs (home state law) and governing law
- Clarify ambiguous language and correct obvious drafting errors
- Modernize administrative provisions
- Strengthen divorce and creditor protection provisions
- Authorize certain investments or business decisions
- Divide or combine trusts when advisable
- React to significant tax law changes
The protector doesn’t manage investments or make regular distributions (that’s the trustee’s job). Instead, the protector is there for moments of change: A child’s impending divorce, A beneficiary with a risky job or business who might be facing a major lawsuit, A move from Pennsylvania to a no-tax state, A trustee that has become too expensive or unresponsive, A new law (or opportunity) that didn’t exist when you signed your plan such as protecting your heirs from capital gains tax rather than federal estate tax.
When something like that happens, the protector can act in weeks, not the months or years a court proceeding would require.
And they can do so privately, without your family’s financial details becoming part of the public record.
Where Trust Protectors Matter Most
While almost any trust can benefit from a trust protector, we see the greatest impact in three common structures.
A. Lifetime Irrevocable Trusts
(Often created even many years ago for tax savings and divorce/creditor protection)
Many of our clients establish irrevocable trusts while they are alive to:
- Move appreciating assets out of their taxable estate
- Protect children and grandchildren from divorces and lawsuits
- Build multi-generational “family capital” that can last for decades
The catch? Once you sign and fund an irrevocable trust, the terms generally cannot be changed.
Unless… you have a trust protector built into the document.
With a protector, your team can respond when: A child’s spouse becomes a problem, A beneficiary faces a malpractice or business lawsuit, State or federal tax laws shift dramatically, The original trustee is no longer a good fit and a change is needed.
The trust remains irrevocable for tax and asset protection purposes but it’s no longer stuck in a bad situation.
B. Testamentary Trusts Under Your Will
Many Pennsylvania parents and grandparents wisely leave their heirs’ inheritances in trust rather than outright to create a powerful shield in divorce, buffer against your heirs’ creditors, and as a way to protect children from their own inexperience or future vulnerability.
But again: the terms are fixed.
Adding trust protector provisions to those testamentary trusts lets someone you choose, who understands your intent, tighten the bolts later when needed even if you never updated your will and without a judge doing it for you in an expensive probate court proceeding.
C. Trusts That Own Businesses Or Complex Assets
Where a trust owns:
- A family business
- Commercial real estate
- Interests in partnerships or LLCs
- Concentrated positions in closely held stock
…the stakes and complexity are high.
A trust protector can:
- Authorize retaining or selling a family company
- Adjust provisions to deal with a buy-sell agreement or restructuring
- Bring in a co-trustee with specialized expertise
- Help navigate succession when the next generation is (or isn’t) ready
So, If Things Change, Why Not Just Go To Court?
Some clients ask, “If something needs to change, can’t my family just go to court?”
Technically, yes. Practically, it’s often the worst tool in the toolbox:
- Cost: Petitions to modify a trust often run $15,000–$55,000 or more.
- Time: Six months to two years is common. Emergencies don’t wait.
- Publicity: Your family’s finances, problems, and planning strategy become part of the public record.
- Uncertainty: A judge who never met you decides what you “would have wanted.”
- Conflict: Court processes often pit family members against each other.
By contrast, a trust protector can usually accomplish the same adjustment:
- In weeks, not years
- For a fraction of the cost
- Privately
- Guided by your written intent and their knowledge of you and your values
In other words, trust protectors let your family avoid asking a court for permission to do what you already wanted done.
Are There Risks To Having A Trust Protector? Yes - Which Is Why Drafting And Selection Matter.
Like any powerful tool, trust protectors must be used correctly.
Key Concerns (And How We Address Them)
- Choosing the wrong person
- We focus on independence, judgment, and expertise.
- Typically, we recommend professional advisors (experienced estate planning attorneys, CPAs, or trust-savvy financial professionals) or institutional protectors - not the grantor and not the primary beneficiaries.
- Too much power
- Your documents should clearly state what a protector can and cannot do.
- For example, a protector normally cannot make themselves a beneficiary, remove your children as beneficiaries, or undermine the basic protective purpose of the trust.
- Tax issues
- The IRS and Pennsylvania revenue authorities care about who has what powers.
- We avoid giving you (the grantor) or your children powers that could drag trust assets back into an estate or undermine asset protection.
- Proper drafting keeps trust protector powers tax-neutral.
- What if the protector dies or becomes unable to serve?
- Your documents should name multiple successors.
- We can also build in a mechanism for a trustee, beneficiaries, or an outside party to appoint a replacement protector if all named individuals are unable to serve.
With careful planning, the benefits almost always outweigh the risks by a wide margin—especially for families with significant wealth at stake.
How Do You Know If You Need A Trust Protector Or A Trust Protector Audit/Update?
If any of the following apply to you, it’s time to at least explore the question:
- You have, or expect to have, $2 million or more in total assets (which includes life insurance).
- Your current plan uses trusts for children or grandchildren.
- You want to protect them from divorce or lawsuits.
- You or your children own a business, rental properties, or significant investment real estate.
- Your documents were drafted more than 7–10 years ago, or before major tax law changes.
- Your child’s marriage or financial situation gives you pause and/or they have liability exposure based on their business.
- You’re not sure who will be sitting on the bench of the Pennsylvania Court of Common Pleas Orphans Court ten or twenty years from now - but you’d rather not gamble your family’s security on that.
If you nodded “yes” to even one of these, a trust protector review is usually a wise move.
What We Recommend: A “Trust Protector, Estate Plan & Asset Protection Audit/Update”
Because so many of our Pennsylvania clients asked, “Do we already have this in our documents and if so, does it need an update?” we created a focused review process. The cost of $500 is waived for existing clients and is otherwise credited to your fees if you move forward with any estate planning updates. Here are the details…
UTBF Trust Protector, Estate Plan & Asset Protection Audit Includes:
- Comprehensive review of your current wills and trusts
- Do they include trust protector provisions?
- If so, are they drafted in a way that actually works under Pennsylvania law?
- Are there hidden tax or asset-protection issues?
- Risk analysis for each major beneficiary
- Divorce exposure
- Lawsuit and profession-based risks
- Business ownership and guarantees
- Special needs or future vulnerability
- Assessment of current trustees
- Are they still the right institutions or individuals?
- Are there clear, efficient removal and replacement mechanisms?
- Recommendations
- Where and how trust protectors should be added or strengthened
- Whether a change of situs might make sense in the future
- Specific updates to better protect your family from divorce and creditors
- Implementation roadmap
- Clear, step-by-step proposals with estimated costs and timelines
- Options for phased implementation if appropriate
For many clients, adding or updating trust protector provisions and updating your foundational planning or even older irrevocable trusts (which could cost a few thousand dollars or more) is a modest investment compared to what is at risk and what litigation would cost later.
What To Do Next
If you are a Pennsylvania resident (or own Pennsylvania real estate), are roughly between 55 and 75, and your net worth is $2 million or more, your next step is simple:
1. Schedule a Consultation
Call our office at 610-933-8069 and request a Trust Protector, Estate Plan & Asset Protection Audit of your existing plan—or a design consultation if you are starting fresh.
2. Gather Your Documents
We will typically ask for: Your current will(s), A Personal Financial Statement and family information (we provide an easy to use form), and, Copies of any trusts (revocable or irrevocable),
3. Meet With Us (In Person or Virtually By Zoom®)
We’ll:
- Translate your current documents into plain English
- Identify gaps, risks, and opportunities
- Show you specifically how trust protector provisions could strengthen your plan
4. Decide On An Implementation Plan
You’ll leave with a clear understanding of:
- Whether your heirs are as protected as you think
- What changes we recommend and why
- The cost and timing of those changes
There is no obligation to proceed beyond the consultation. But for many families, this single step has uncovered and resolved vulnerabilities that might otherwise have cost them tens of thousands to millions - or years of unnecessary conflict.
About The Author and Our Firm
David M. Frees, III, J.D. is Co-Chair of the Trust, Estates & Wealth Preservation Section at Unruh, Turner, Burke & Frees, P.C. He has practiced in the areas of estates, trusts, asset protection, and wealth preservation for nearly four decades and was an early adopter of trust protector provisions in Pennsylvania domestic planning.
Mr. Frees has:
- Been selected for many years to Best Lawyers in America® and Pennsylvania Super Lawyers®
- Received a 10.0 “Superb” rating from AVVO
- Lectured for the Pennsylvania Bar Institute and at institutions including Harvard, Yale, Dickinson, ASU, and Cornell
- Served on the boards and trust committees of multiple trust companies
Our firm has offices in Phoenixville and West Chester, and the Trust, Estates & Wealth Preservation Section has helped thousands of Pennsylvania families design plans that:
- Protect heirs from divorce, lawsuits, and business creditors
- Minimize taxes and administrative hassle
- Preserve privacy and family control
- Keep more of what you’ve built in the hands of the people you love
Important Disclosures
This article is for educational purposes only and does not constitute legal or tax advice. Laws change, and their application depends on your specific facts and circumstances.
If you’d like advice on your situation, please call our office at 610-933-8069 to schedule a confidential consultation.
Protecting Pennsylvania families’ wealth across generations since 1990.
