Legal Question in Wills and Trusts in California

An attorney does not have to prepare the trust for it to be legal, as long as it complies with the legal requirements of a valid trust. Of course a non-lawyer who prepares a trust for someone else is practicing law without a license, which is a crime, but even then if the trust would have been valid if done by a lawyer, it will still be valid.

The trustee can purchase the assets to fund a cash disbursement but it is not wise to do so unless for some reason he or she is willing to pay above market value. If the trustee pays anything less than full market value the sale will be void, and determining fair market value is tricky enough that a wise trustee would never take a chance on being second guessed on the value, since the liability for breaching the fiduciary duties of the trustee can be enormous.