Isn’t there a statute that prohibits a trustee from self dealing unless he obtains the consent of all beneficiaries or the court?
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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 11 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.
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