Can a Trustee Also Be a Beneficiary of the Same Trust in Ontario?

Whether one person can be both a trustee and a beneficiary of the same trust depends on the wording of the trust document and on your situation, so it is worth confirming with a lawyer. The trust terms also matter for investing, because the Trustee Act's investment powers do not authorize or require a trustee to act inconsistently with them.

When you invest trust property, you must use the care, skill, diligence and judgment of a prudent investor. You must consider listed criteria, diversify to an appropriate extent, and you may obtain investment advice. Your investment powers never let you act inconsistently with the terms of the trust.

As a trustee, you may apply to the Superior Court of Justice, without starting an action, for the court's opinion, advice or direction on managing trust property. A trustee is not liable for an investment loss if the conduct that led to it followed a plan or strategy that a prudent investor could adopt. If a trustee needs to be replaced, the Superior Court of Justice may appoint a new trustee or trustees, either replacing or adding to the existing ones. Keep clear records and get advice early.