self dealing trustee

[Darrow]

New York jurisdiction.
If a testamentary trust specifically authorizes a trustee to purhase trust property in his/her own personal capacity, can the objections of remaindermen beneficiaries stop the transaction?

If so, must the objections be reasonable or arbitrary?

Thanks!

 

[ALawyer]

In theory anyone who is a party in interest can go into Court and seek a Temporary Restraining order that might delay any sale, even one at 10 times the value, at least until there was a hearing.

If there is explicit power for the trustee to purchase property from the trust, notwithstanding the inherent conflict of interest, and the trustee is both solvent and respectible, the remaindermen would have the right to get redress later. If there was some other reason that this is a unique situation, then the argument would be stronger. For example, let's say that Donald Trump wanted the land to complete a parcel and would buy it at 100 times its value right now, and if not, will find another location, but the trustee wants it for his home. Then a court would say STOP.

 

[Darrow]

So as long as the trustee acts in good faith, offers at least fair market value for the trust property (and there is no better offer available)and deems the deal in the best interests of the trust/estate, the transaction should be upheld by NY courts despite objections of the remaindermen?

Can the remaindermen stop the purchase at all or is delay their only recourse?

Thanks!