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can a trustee lend money from my dad’s trust , then say the money will be repaid
to the trust out of her share when my father dies?
Asked on April 22, 2018 under Estate Planning, Montana
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 3 years ago | Contributor
The trustee has breached a fiduciary duty with this loan. Your father can sue the trustee for breach of the trust. Your father's remedy in the lawsuit is a constructive trust against the trustee to return the funds to the trust. Your father's lawsuit should also seek removal of the trustee and appointment of a successor trustee. A constructive trust mentioned above compels the trustee to return the funds to the trust.