conflict of interest

[Sarahnp]

What is the name of your state (only U.S. law)? Maine. This concerns a real estate trust. My parents' names are both on it as; "Jane Doe Trust and as individual" and "John Doe Trust and as individual." My mother made my sister her co-trustee and my father made my brother-in-law. I am listed as a beneficiary. Since my sister and her husband are married to each other, is there a conflict of interest?

 

[Zigner]

What is the name of your state (only U.S. law)? Maine. This concerns a real estate trust. My parents' names are both on it as; "Jane Doe Trust and as individual" and "John Doe Trust and as individual." My mother made my sister her co-trustee and my father made my brother-in-law. I am listed as a beneficiary. Since my sister and her husband are married to each other, is there a conflict of interest?

No .

 

[Sarahnp]

Thank you. I have to explain why it is not a conflict of interest to another listed beneficiary. How can I best explain it.

 

[tranquility]

I agree with the OP, it IS a conflict of interest.

The problem for the OP is, there's nothing inherently wrong with that.

When you get down to it, unless the trustee is not a beneficiary OR getting paid, all trusts have such a conflict.

 

[Sarahnp]

So, can a trustee also be a beneficiary?

 

[Zigner]

So, can a trustee also be a beneficiary?

Yes .

 

[tranquility]

The only limitation is that the trustee cannot be the ONLY beneficiary. If the equitable and legal ownership become the same, they are said to merge. Merger will eliminate the trust.

 

[Sarahnp]

Thank you. Your answers help.