As the trustee

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As the trustee

Can the trust buy my rental as
an investment

Asked on December 24, 2016 under Estate Planning, Hawaii

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, so long as the price paid is fair market value and it's a reasonable investment for the trust (and not otherwise prohibited by the terms of any trust documents). Nothing prohibits a trustee from making a profit from the trust so long as doing so is also a good deal for the trust. Basically, if the trust would buy this rental as an investment for the offered price from a third party, it can do so from you. But if it's a bad investment or the trust overpays, then this would likely be a breach of fiduciary duty and also self-dealing.


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