Is it a conflict of interest if the trustee is the sole beneficiary of a trust?

Maybe not but you want to avoid all appearances of a conflict so it would not be a good idea to do it this way, especially if you disinherit an heir. But there is no conflict if you see the attorney directly and have the attorney draw up the trust and consult with the Estate Planner.

It's not completely clear what you are trying to accomplish. It sounds like you are trying to provide funds to your friend through a trust, but I am not sure why you are trying to do this. Typically trusts that are set up for the benefit of another person are for members of the creator's (settlor's )family. In any event there is no strict prohibition against a beneficiary and a trustee being the same person. However, situations could arise which jeopardizes the purposes of the trust. You mentioned setting the trust up through an attorney, I strongly recommend that you thoroughly discuss these concerns with the attorney and be clear as to the reasons you are setting up the trust.

In Florida this would be an invalid trust, if the only beneficiary is the trustee. The principle of a trust is the separation between legal title (trustee) and beneficial interest (beneficiary). If these 2 are the same person, 100%, the doctrine of merger invalidates the trust. If there were even a splinter beneficial interest given to somebody else or a charity, then the merger doctrine would not invalidate the trust.

Whether it's an honor or a burden (or both), when you have been appointed trustee of a trust. What responsibilities have been thrust upon you? How can you successfully carry them out? Here are nine do's and one don't to get you started: 1. Do read the trust document. It sets out the rules under which you will operate, so you need to understand it completely. 2. Do create a checking account for the trust. All income and expenses should go through this account. While you can and should invest the money, a checking account will enable you to make distributions and payments and keep track of them. 3. Do keep the best interests of the beneficiaries in mind at all times. You have what's called a "fiduciarry" duty to them, which is an extremely high standard. 4. Don't have any personal financial dealings with the trust. For instance, you cannot borrow money from the trust or lend the trust money to anyone. 5. Do provide the beneficiaries and anyone else indicated in the trust with an annual account of trust activity. This can be a copy of the checking and investment account statements or a more formal trust account prepared by an accountant or attorney. 6. Do invest the trust funds prudently and productively. You cannot simply leave the trust funds in a savings account. And you can't put them all into a promising new company. You need to diversify the trust portfolio among stocks and fixed income securities. It is wise to get professional investment advice. 7. Do keep in regular contact with the beneficiaries to understand their needs. 8. Do be aware of any public benefits the beneficiaries may be receiving and make sure you do not jeopardize the beneficiaries' eligibility. 9. Do file annual income tax returns for the trust. 10. Don't fly solo. Get professional advice to make sure you are correctly fulfilling your role. See an elder law attorney since this subject can be complex and other issues are created that you might require further information. My website below may have articles that may further be of interest to you on this subject. If you think this post was helpful, please check the thumbs up (helpful) tab below. Thank you! My comments are not intended to establish an attorney-client relationship, are not confidential, and are not intended to constitute legal advice. Proper legal advice can only be given by an attorney who agrees to represent you, who reviews the facts of your specific case, who does not have a conflict of interest preventing the representation, and who is licensed as an attorney in the state where the law applies. Dan W. Armstrong, Attorney Law Offices of Dan W. Armstrong, P.A. P.O. Box 1535 Ponte Vedra Beach, FL 32004-2479 (O) 904.280.0058, (F) 904.280.0109 Website: http://www.DanArmstrong.com