When are a trustee's self-dealing rules rarely tested?

The answer concerning when a trustee's self-dealing rules are rarely tested relates to instances when those rules are waived by the settlor. When the settlor explicitly allows for certain forms of self-dealing in the trust document, the trustee is afforded a level of freedom to engage in transactions that would typically be scrutinized for potential conflicts of interest or improper benefit. This waiver can be important because it reflects the intent of the settlor, who may have specific reasons for allowing the trustee to act without the usual restrictions.

In contrast, the other scenarios either involve inherent trust protections or raise issues of fiduciary duty among parties who might be impacted by self-dealing. For example, in a revocable trust, the settlor retains significant control over the trust assets and can alter or revoke the trust, which does not typically lessen the fiduciary obligations of the trustee. Similarly, issues of self-dealing can arise regardless of the trust assets' value, as even minimal assets can create potential conflicts. In the case of trusts involving minors, strict scrutiny of self-dealing is common to protect the interests of the beneficiaries, who may not have the capacity or means to safeguard their rights. This ensures that trustees act in good faith and with the care required for