Legal Question in Wills and Trusts in Michigan

What do you mean by the trust is held in Texas? It went through a Texas probate court, or your friend lives in Texas?

The location of any purchases or expenditures out of the Trust, or on behalf of the Trust, is not an issue - it is what you are entitled to do with the Trust, and/or what actions you are allowed to take. If you are permitted to use trust monies to make investments that are beneficial to the estate/Trust, then your actions are likely legal. Is your elderly friend lucid such that you could discuss the investment? Is your status as Trustee (also known as an Executor of a Trust), monitored by the probate court? Fiduciaries are required to act in the best interests of the protected person. You are the fiduciary (a guardian, trustee, conservator, personal representative, etc). If the investment is beneficial to the Trust, then the court shouldn't have a problem with it. And, for example, if you were buying a house with Trust money and renting it out, all income would need to go back into the Trust. If your status as Trustee requires court approval for certain expenditures, then certainly obtain that approval first, otherwise the transaction is void and you could face civil and criminal penalties for violation of your fiduciary obligations and duties.