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 7 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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