Legal Question in Business Law in California

Yes if it is not violative of the terms of the trust, the trustee can invest in an LLC.

As long as the terms of the trust don't prohibit investment - membership in an LLC, you should be fine. Check with a local attorney in your area for specifics before proceeding.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

I would add that the combination of a family trust and an LLC may be a red flag that a questionable tax shelter or creditor shelter is being structured. Maybe not, but if someone is trying to shelter assets or income from the IRS or creditors, be sure the plan has been reviewed and OKed by a qualified professional (attorney, tax advisor, estate planner, etc.).