Can a trustee sell trust properiy to himself and his wife?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a trustee sell trust properiy to himself and his wife?

He is going to get 20% of the gross profit of the sale and then get another 25% of the net as a beneficiary; he will receive 40% of the money he buys it for and the property.

Asked on March 4, 2013 under Estate Planning, Texas

Answers:

Elena Eckert

Answered 11 years ago | Contributor

As a general rule, a trustee, as a fiduciary, is not allowed to self-deal (i.e. sell the trust assets to himself or his spouse at a profit), regardless of whether he is also a beneficiary of the trust.  However, quite often a trust instrument allows the trustee to self-deal, especially if a trustee is a relative of the grantor of the trust.  In this case, the trustee should be able to sell the trust assets to himself.  You should read the trust instrument and see if self-dealing is allowed (read the section titled "Trustee's powers or the like).  

Regardless of the language of the trust instrument, a trustee remains a fiduciary with respect to the trust beneficiaries and is not supposed to do anything contrary to the interests of the beneficiaries.  A sale of the trust assets to himself is not necessarily harmful to the beneficiaries' interests, however, if for example he pays less than the fair market value, he is likely to be in violation of his fiduciary duties to the beneficiaries.

I suggest you consult an attorney knowledgable in trust administration in your area.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption