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Learn about self-dealing in trusts - when trustees improperly benefit from trust assets. Understand prohibited transactions and fiduciary duties to protect y...
When a trustee engages in self-dealing, they breach their fiduciary duty and can face serious consequences. Beneficiaries can petition the court to remove the trustee, recover any losses to the trust, and force the trustee to return any profits they gained. The trustee may also be personally liable for damages and could face surcharge orders requiring them to pay money back to the trust. Courts take self-dealing very seriously because trustees must always act in the beneficiaries' best interests, not their own.