David F. Johnson presented his paper on “Administering A Trust In A Recession: Trust Loans To Beneficiaries” to the Houston Bar Association’s Probate and Estate Section on October 27, 2020 via a webinar format. This presentation addressed, among other things, a trustee’s authority to loan trust assets to beneficiaries, co-trustee issues, conflicts of interest, the duty of loyalty and confidentiality, the duty to diversify, the duty to properly manage a trust, due diligence and documentation considerations, potential tax issues, pursuing claims against a defaulting beneficiary, claims against a trustee for making such a loan, and options that trustees can pursue to limit risk associated with making such loans.

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