Legal Question in Wills and Trusts in Maryland

Can the trustee of a trust for a minor child loan themselves a mortgage with no repayment terms, just a promissory note? This drained the trust approximately 50-90% of it's holdings.

Asked on 6/14/11, 7:21 am

1 Answer from Attorneys

Cedulie Laumann Arden Law Firm, LLC

Generally a trustee may NOT self-deal from Trust assets and such may breach its fiduciary duties. However, in some circumstances dealings that benefit a Trustee "may" be appropriate. To use a favorite response of lawyers "it depends." Is the trust for the benefit of the trustee and the minor child or only for the minor child? Does the mortgage benefit the child (i.e., is the child living in the home at issue)?

I strongly encourage an attorney review of the Trust document and specific facts of the situation. This post does not substitute for legal advice.

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Answered on 6/14/11, 7:50 am

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