D
Darrow
Guest
New York jurisdiction.
A will creates a testamentary trust naming a person as both executor and trustee, and this person is also the sole income beneficiary. There are multiple remaindermen to the trust as well.
The will specifically provides that the trustee/executor can engage in "self-dealing" (purchase trust assets for own personal account)
1. Will a NY court uphold this will provision as a valid conferrance of power to the trustee to self-deal? Note: the trustee plans to act in good faith and offer at least fair market value for the trust assets.
2. If the provision is valid, can the self-dealing transaction still proceed despite the objections of the trust's remaindermen? Note: the provision does not require any court approval or beneficiary approval.
3. If beneficiary approval is required, can the beneficiaries withhold approval arbitrarily? Must their decision be made on a reasonableness standard?
Thank you!
2.
A will creates a testamentary trust naming a person as both executor and trustee, and this person is also the sole income beneficiary. There are multiple remaindermen to the trust as well.
The will specifically provides that the trustee/executor can engage in "self-dealing" (purchase trust assets for own personal account)
1. Will a NY court uphold this will provision as a valid conferrance of power to the trustee to self-deal? Note: the trustee plans to act in good faith and offer at least fair market value for the trust assets.
2. If the provision is valid, can the self-dealing transaction still proceed despite the objections of the trust's remaindermen? Note: the provision does not require any court approval or beneficiary approval.
3. If beneficiary approval is required, can the beneficiaries withhold approval arbitrarily? Must their decision be made on a reasonableness standard?
Thank you!
2.