It is a conflict of interest, but not a conflict that cannot be resolved or waived. There are often many benefits to using a beneficiary as a Trustee, however the document must be carefully drafted if this is the case. A trustee still has a fiduciary duty to protect the beneficiary's interest and to carry out the terms of the trust.

There are other problems with a remainder beneficiary serving as trustee. For example, unless the trust is drafted with specific language, she could be charged with making a gift to you when she distributes assets, causing a gift tax problem for her.

You should know that you have the right to hire an attorney to review the situation and represent your best interest. While the Trustee has a fiduciary obligation to you, the Trustee also has a potential competing legal interest. It is in your best interest to retain independent counsel to review the matter.

Ethically, I must remind you that no attorney-client relationship is created between us through my sharing this general information. This is not intended to be legal advice. If you would like additional assistance and you do not already have a qualified trusts and estate lawyer, I would be most happy to help you.