Overview
Self-dealing, conflicts, trust pursuit, BFP exceptions. This module covers 10 of The Law of Trusts casebook, with real case holdings, key principles, and practical problems.
Educational content from the casebook "The Law of Trusts" — rebranded under AKASHIC INTELLIGENCE / LOVELOVINGLIFE. This is legal education, not legal advice. Trust law varies by state. Always consult a qualified estate-planning attorney.
Key Cases (2)
Boyce Family Trust
128 S.W.3d 630 · Issue: Duty of loyalty — self-dealing and constructive trust
Holding: A trustee who sells property to the trust breaches the duty of loyalty. The court may impose a constructive trust on the proceeds. Beneficiary consent must be informed to be a defense.
Edwards v. Edwards (ch.10)
842 P.2d 299 · Issue: Duty of loyalty — conflict of interest
Holding: A trustee who contracts to develop trust property at a profit to themselves creates an impermissible conflict of interest. Without court authorization, the agreement is voidable at the beneficiary's option.
Practice Problems (1)
Self-Dealing
Scenario: A trustee purchases trust property at above-market price. The property later appreciates. Can the beneficiary recover?
Analysis: Yes — self-dealing is a breach regardless of fairness or good faith. The court makes no further inquiry. The beneficiary can recover the property or the profit from appreciation.
Deep Dive
Read the full chapter in The Law of Trusts, Made Plain