Occupancy of trust-held real estate by the fiduciary responsible for its management is permissible under certain circumstances. For instance, if a trust document explicitly grants the trustee, or if the arrangement demonstrably benefits the beneficiaries and aligns with the trust’s purpose, such habitation might be considered acceptable. A court order may also authorize it.
Such arrangements can offer practical advantages. For example, having the trustee on-site can simplify property maintenance and enhance security. It may also reduce expenses associated with hiring external property managers. However, the potential for conflicts of interest necessitates careful consideration and thorough documentation of all related transactions. Historically, courts have scrutinized such arrangements rigorously to protect beneficiary interests. Clear guidelines and robust oversight are therefore essential to ensure ethical and legal compliance.
