Why can't an individual be their own trustee of a property held in fee simple?
Understand the Problem
The question is asking for the reason why an individual cannot act as their own trustee for a property that they own in fee simple. It is addressing concepts of property law related to trusteeship and property ownership.
Answer
An individual can be their trustee, but it may involve conflicts of interest.
An individual can be their own trustee for a property held in fee simple, but it can lead to practical issues like conflicts of interest and challenges in fulfilling fiduciary duties.
Answer for screen readers
An individual can be their own trustee for a property held in fee simple, but it can lead to practical issues like conflicts of interest and challenges in fulfilling fiduciary duties.
More Information
Although legally permissible, acting as both trustee and beneficiary can complicate the execution of fiduciary duties and blur the lines between personal and trust assets.
Tips
Conflicts of interest and failure to segregate personal and trust assets are common pitfalls.
Sources
- Can a Trustee Be a Beneficiary? - keystone-law.com
- Risks of Being Trustee of a Trust & How to Avoid Common Pitfalls - cunninghamlegal.com
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