Legal Question in Wills and Trusts in California

Unfortunately the answer to both of your questions is "MAYBE". It depends on the language of the Trust itself. Some trusts would permit this sort of self-dealing, but others may not. It would be unusual for beneficiaries to have to consent or be asked about the loan; however, the terms of the loan must be fair and protect the interests of the beneficiaries. If the loan is sizeable, then the Trustees may have a duty to keep beneficiaries informed, but if the loan is small in comparison to the overall value of the trust, then it would not necessarily require immediate disclosure.