In remedy for trustee self-dealing, courts typically do not inquire into which aspect?

• A. Good faith
• B. The amount of damages
• C. The existence of self-dealing
• D. The ability to remove the trustee

Answer: (A)

Self-dealing breaches a trustee’s duty of loyalty, and courts remedy it by undoing the transaction and restoring the trust, or by disgorging the trustee’s profits. In this context, the trustee’s motive or belief is irrelevant to liability—the breach occurs regardless of good faith. So, when courts fashion remedies, they focus on undoing the self-dealing and making the beneficiaries whole, not on whether the trustee acted with good intentions. The existence of self-dealing is the trigger for liability, while the remedy may involve setting aside the transaction, awarding damages or profits, or removing the trustee; good faith doesn’t excuse the breach.