Isn’t there a statute that prohibits a trustee from self dealing unless he obtains the consent of all beneficiaries or the court?

Get Legal Help Today

 Secured with SHA-256 Encryption

Isn’t there a statute that prohibits a trustee from self dealing unless he obtains the consent of all beneficiaries or the court?

A trustee buys a business of the testator. There was no public bidding or opportunity for anyone else to buy the business. It was purchased on very favorable terms without obtaining the consent of all the beneficiaries of a trust and without approval of the court.

Asked on May 2, 2012 under Estate Planning, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I am so sorry for your loss.  What seems to have happened here is that the trustee has breached his or her fiduciary duty to the other beneficiaries of the trust.  You can challenge the trustee and the purchase but you are going to need help doing so.  Good luck.


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 with SHA-256 Encryption