reglab/statecodes huggingface dataset:
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter C. Resignation or Removal of Trustee, and Authority of Multiple and Successor Trustees › Section 113.083. Appointment of Successor Trustee

Sec. 113.083.  APPOINTMENT OF SUCCESSOR TRUSTEE.  (a)  On the death, resignation, incapacity, or removal of a sole or surviving trustee, a successor trustee shall be selected according to the method, if any, prescribed in the trust instrument.  If for any reason a successor is not selected under the terms of the trust instrument, a court may and on petition of any interested person shall appoint a successor in whom the trust shall vest.
(b)  If a vacancy occurs in the number of trustees originally appointed under a valid charitable trust agreement and the trust agreement does not provide for filling the vacancy, the remaining trustees may fill the vacancy by majority vote.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter C. Resignation or Removal of Trustee, and Authority of Multiple and Successor Trustees › Section 113.084. Powers of Successor Trustee

Sec. 113.084.  POWERS OF SUCCESSOR TRUSTEE.  Unless otherwise provided in the trust instrument or by order of the court appointing a successor trustee, the successor trustee has the rights, powers, authority, discretion, and title to trust property conferred on the trustee.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter C. Resignation or Removal of Trustee, and Authority of Multiple and Successor Trustees › Section 113.085. Exercise of Powers by Multiple Trustees

Sec. 113.085.  EXERCISE OF POWERS BY MULTIPLE TRUSTEES.  (a)  Cotrustees may act by majority decision.
(b)  If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(c)  A cotrustee shall participate in the performance of a trustee's function unless the cotrustee:
(1)  is unavailable to perform the function because of absence, illness, suspension under this code or other law, disqualification, if any, under this code, disqualification under other law, or other temporary incapacity; or
(2)  has delegated the performance of the function to another trustee in accordance with the terms of the trust or applicable law, has communicated the delegation to all other cotrustees, and has filed the delegation in the records of the trust.
(d)  If a cotrustee is unavailable to participate in the performance of a trustee's function for a reason described by Subsection (c)(1) and prompt action is necessary to achieve the efficient administration or purposes of the trust or to avoid injury to the trust property or a beneficiary, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
(e)  A trustee may delegate to a cotrustee the performance of a trustee's function unless the settlor specifically directs that the function be performed jointly.  Unless a cotrustee's delegation under this subsection is irrevocable, the cotrustee making the delegation may revoke the delegation.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 17, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 7, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 973 (H.B. 3635), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter E. Accounting by Trustee › Section 113.151. Demand for Accounting

Sec. 113.151.  DEMAND FOR ACCOUNTING.  (a)  A beneficiary by written demand may request the trustee to deliver to each beneficiary of the trust a written statement of accounts covering all transactions since the last accounting or since the creation of the trust, whichever is later.  If the trustee fails or refuses to deliver the statement on or before the 90th day after the date the trustee receives the demand or after a longer period ordered by a court, any beneficiary of the trust may file suit to compel the trustee to deliver the statement to all beneficiaries of the trust.  The court may require the trustee to deliver a written statement of account to all beneficiaries on finding that the nature of the beneficiary's interest in the trust or the effect of the administration of the trust on the beneficiary's interest is sufficient to require an accounting by the trustee.  However, the trustee is not obligated or required to account to the beneficiaries of a trust more frequently than once every 12 months unless a more frequent accounting is required by the court.  If a beneficiary is successful in the suit to compel a statement under this section, the court may, in its discretion, award all or part of the costs of court and all of the suing beneficiary's reasonable and necessary attorney's fees and costs against the trustee in the trustee's individual capacity or in the trustee's capacity as trustee.
(b)  An interested person may file suit to compel the trustee to account to the interested person.  The court may require the trustee to deliver a written statement of account to the interested person on finding that the nature of the interest in the trust of, the claim against the trust by, or the effect of the administration of the trust on the interested person is sufficient to require an accounting by the trustee.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 2003, 78th Leg., ch. 550, Sec. 3, eff. Sept. 1, 2003.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter E. Accounting by Trustee › Section 113.152. Contents of Accounting

Sec. 113.152.  CONTENTS OF ACCOUNTING.  A written statement of accounts shall show:
(1)  all trust property that has come to the trustee's knowledge or into the trustee's possession and that has not been previously listed or inventoried as property of the trust;
(2)  a complete account of receipts, disbursements, and other transactions regarding the trust property for the period covered by the account, including their source and nature, with receipts of principal and income shown separately;
(3)  a listing of all property being administered, with an adequate description of each asset;
(4)  the cash balance on hand and the name and location of the depository where the balance is kept;  and
(5)  all known liabilities owed by the trust.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter F. Common Trust Funds › Section 113.171. Common Trust Funds

Sec. 113.171.  COMMON TRUST FUNDS.  (a)  A bank or trust company qualified to act as a fiduciary in this state may establish common trust funds to provide investments to itself as a fiduciary, including as a custodian under the Texas Uniform Transfers to Minors Act (Chapter 141) or a uniform gifts or transfers to minors act of another state or to itself and others as cofiduciaries.
(b)  The fiduciary or cofiduciary may place investment funds in interests in common trust funds if:
(1)  the investment is not prohibited by the instrument or order creating the fiduciary relationship;  and
(2)  if there are cofiduciaries, the cofiduciaries consent to the investment.
(c)  A common trust fund includes a fund:
(1)  qualified for exemption from federal income taxation as a common trust fund and maintained exclusively for eligible fiduciary accounts;  and
(2)  consisting solely of assets of retirement, pension, profit sharing, stock bonus, or other employees' trusts that are exempt from federal income taxation.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 18, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 113 - Administration › Subchapter F. Common Trust Funds › Section 113.172. Affiliated Institutions

Sec. 113.172.  AFFILIATED INSTITUTIONS.  A bank or trust company that is a member of an affiliated group under Section 1504, Internal Revenue Code of 1954 (26 U.S.C. 1504), with a bank or trust company maintaining common trust funds may participate in one or more of the funds.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.001. Liability of Trustee to Beneficiary

Sec. 114.001.  LIABILITY OF TRUSTEE TO BENEFICIARY.  (a)  The trustee is accountable to a beneficiary for the trust property and for any profit made by the trustee through or arising out of the administration of the trust, even though the profit does not result from a breach of trust;  provided, however, that the trustee is not required to return to a beneficiary the trustee's compensation as provided by this subtitle, by the terms of the trust instrument, or by a writing delivered to the trustee and signed by all beneficiaries of the trust who have full legal capacity.
(b)  The trustee is not liable to the beneficiary for a loss or depreciation in value of the trust property or for a failure to make a profit that does not result from a failure to perform the duties set forth in this subtitle or from any other breach of trust.
(c)  A trustee who commits a breach of trust is chargeable with any damages resulting from such breach of trust, including but not limited to:
(1)  any loss or depreciation in value of the trust estate as a result of the breach of trust;
(2)  any profit made by the trustee through the breach of trust;  or
(3)  any profit that would have accrued to the trust estate if there had been no breach of trust.
(d)  The trustee is not liable to the beneficiary for a loss or depreciation in value of the trust property or for acting or failing to act under Section 113.025 or under any other provision of this subtitle if the action or failure to act relates to compliance with an environmental law and if there is no gross negligence or bad faith on the part of the trustee.  The provision of any instrument governing trustee liability does not increase the liability of the trustee as provided by this section unless the settlor expressly makes reference to this subsection.
(e)  The trustee has the same protection from liability provided for a fiduciary under 42 U.S.C. Section 9607(n).
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 13, eff. Oct. 2, 1984;  Acts 1989, 71st Leg., ch. 341, Sec. 2, eff. Aug. 28, 1989;  Acts 1993, 73rd Leg., ch. 846, Sec. 30, eff. Sept. 1, 1993;  Acts 1997, 75th Leg., ch. 263, Sec. 1, eff. Sept. 1, 1997;  Acts 2003, 78th Leg., ch. 1103, Sec. 8, eff. Jan. 1, 2004.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.002. Liability of Successor Trustee for Breach of Trust by Predecessor

Sec. 114.002.  LIABILITY OF SUCCESSOR TRUSTEE FOR BREACH OF TRUST BY PREDECESSOR.  A successor trustee is liable for a breach of trust of a predecessor only if he knows or should know of a situation constituting a breach of trust committed by the predecessor and the successor trustee:
(1)  improperly permits it to continue;
(2)  fails to make a reasonable effort to compel the predecessor trustee to deliver the trust property;  or
(3)  fails to make a reasonable effort to compel a redress of a breach of trust committed by the predecessor trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.003. Powers to Direct: Charitable Trusts

Sec. 114.003.  POWERS TO DIRECT: CHARITABLE TRUSTS.  (a) In this section, "charitable trust" has the meaning assigned by Section 123.001.
(a-1)  The terms of a charitable trust may give a trustee or other person a power to direct the modification or termination of the trust.
(b)  If the terms of a charitable trust give a person the power to direct certain actions of the trustee, the trustee shall act in accordance with the person's direction unless:
(1)  the direction is manifestly contrary to the terms of the trust; or
(2)  the trustee knows the direction would constitute a serious breach of a fiduciary duty that the person holding the power to direct owes to the beneficiaries of the trust.
(c)  A person, other than a beneficiary, who holds a power to direct with respect to a charitable trust is presumptively a fiduciary required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries.  The holder of a power to direct with respect to a charitable trust is liable for any loss that results from a breach of the person's fiduciary duty.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 19, eff. January 1, 2006.
Acts 2015, 84th Leg., R.S., Ch. 1108 (H.B. 3190), Sec. 1, eff. June 19, 2015.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.004. Actions Taken Prior to Knowledge or Notice of Facts

Sec. 114.004.  ACTIONS TAKEN PRIOR TO KNOWLEDGE OR NOTICE OF FACTS.  A trustee is not liable for a mistake of fact made before the trustee has actual knowledge or receives written notice of the happening of any event that determines or affects the distribution of the income or principal of the trust, including marriage, divorce, attainment of a certain age, performance of education requirements, or death.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.005. Release of Liability by Beneficiary

Sec. 114.005.  RELEASE OF LIABILITY BY BENEFICIARY.  (a)  A beneficiary who has full legal capacity and is acting on full information may relieve a trustee from any duty, responsibility, restriction, or liability as to the beneficiary that would otherwise be imposed on the trustee by this subtitle, including liability for past violations.
(b)  The release must be in writing and delivered to the trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 8, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.006. Liability of Cotrustees for Acts of Other Cotrustees

Sec. 114.006.  LIABILITY OF COTRUSTEES FOR ACTS OF OTHER COTRUSTEES.  (a)  A trustee who does not join in an action of a cotrustee is not liable for the cotrustee's action, unless the trustee does not exercise reasonable care as provided by Subsection (b).
(b)  Each trustee shall exercise reasonable care to:
(1)  prevent a cotrustee from committing a serious breach of trust; and
(2)  compel a cotrustee to redress a serious breach of trust.
(c)  Subject to Subsection (b), a dissenting trustee who joins in an action at the direction of the majority of the trustees and who has notified any cotrustee of the dissent in writing at or before the time of the action is not liable for the action.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 20, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.007. Exculpation of Trustee

Sec. 114.007.  EXCULPATION OF TRUSTEE.  (a)  A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term relieves a trustee of liability for:
(1)  a breach of trust committed:
(A)  in bad faith;
(B)  intentionally; or
(C)  with reckless indifference to the interest of a beneficiary; or
(2)  any profit derived by the trustee from a breach of trust.
(b)  A term in a trust instrument relieving the trustee of liability for a breach of trust is ineffective to the extent that the term is inserted in the trust instrument as a result of an abuse by the trustee of a fiduciary duty to or confidential relationship with the settlor.
(c)  This section applies only to a term of a trust that may otherwise relieve a trustee from liability for a breach of trust.  Except as provided in Section 111.0035, this section does not prohibit the settlor, by the terms of the trust, from expressly:
(1)  relieving the trustee from a duty or restriction imposed by this subtitle or by common law; or
(2)  directing or permitting the trustee to do or not to do an action that would otherwise violate a duty or restriction imposed by this subtitle or by common law.
Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 21, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter A. Liability of Trustee › Section 114.008. Remedies for Breach of Trust

Sec. 114.008.  REMEDIES FOR BREACH OF TRUST.  (a)  To remedy a breach of trust that has occurred or might occur, the court may:
(1)  compel the trustee to perform the trustee's duty or duties;
(2)  enjoin the trustee from committing a breach of trust;
(3)  compel the trustee to redress a breach of trust, including compelling the trustee to pay money or to restore property;
(4)  order a trustee to account;
(5)  appoint a receiver to take possession of the trust property and administer the trust;
(6)  suspend the trustee;
(7)  remove the trustee as provided under Section 113.082;
(8)  reduce or deny compensation to the trustee;
(9)  subject to Subsection (b), void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property of which the trustee wrongfully disposed and recover the property or the proceeds from the property; or
(10)  order any other appropriate relief.
(b)  Notwithstanding Subsection (a)(9), a person other than a beneficiary who, without knowledge that a trustee is exceeding or improperly exercising the trustee's powers, in good faith assists a trustee or in good faith and for value deals with a trustee is protected from liability as if the trustee had or properly exercised the power exercised by the trustee.
Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 21, eff. January 1, 2006.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter B. Liability of Beneficiary › Section 114.031. Liability of Beneficiary to Trustee

Sec. 114.031.  LIABILITY OF BENEFICIARY TO TRUSTEE.  (a)  A beneficiary is liable for loss to the trust if the beneficiary has:
(1)  misappropriated or otherwise wrongfully dealt with the trust property;
(2)  expressly consented to, participated in, or agreed with the trustee to be liable for a breach of trust committed by the trustee;
(3)  failed to repay an advance or loan of trust funds;
(4)  failed to repay a distribution or disbursement from the trust in excess of that to which the beneficiary is entitled;  or
(5)  breached a contract to pay money or deliver property to the trustee to be held by the trustee as part of the trust.
(b)  Unless the terms of the trust provide otherwise, the trustee is authorized to offset a liability of the beneficiary to the trust estate against the beneficiary's interest in the trust estate, regardless of a spendthrift provision in the trust.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter B. Liability of Beneficiary › Section 114.032. Liability for Written Agreements

Sec. 114.032.  LIABILITY FOR WRITTEN AGREEMENTS.  (a)  A written agreement between a trustee and a beneficiary, including a release, consent, or other agreement relating to a trustee's duty, power, responsibility, restriction, or liability, is final and binding on the beneficiary and any person represented by a beneficiary as provided by this section if:
(1)  the instrument is signed by the beneficiary;
(2)  the beneficiary has legal capacity to sign the instrument;  and
(3)  the beneficiary has full knowledge of the circumstances surrounding the agreement.
(b)  A written agreement signed by a beneficiary who has the power to revoke the trust or the power to appoint, including the power to appoint through a power of amendment, the income or principal of the trust to or for the benefit of the beneficiary, the beneficiary's creditors, the beneficiary's estate, or the creditors of the beneficiary's estate is final and binding on any person who takes under the power of appointment or who takes in default if the power of appointment is not executed.
(c)  A written instrument is final and binding on a beneficiary who is a minor if:
(1)  the minor's parent, including a parent who is also a trust beneficiary, signs the instrument on behalf of the minor;
(2)  no conflict of interest exists;  and
(3)  no guardian, including a guardian ad litem, has been appointed to act on behalf of the minor.
(d)  A written instrument is final and binding on an unborn or unascertained beneficiary if a beneficiary who has an interest substantially identical to the interest of the unborn or unascertained beneficiary signs the instrument.  For purposes of this subsection, an unborn or unascertained beneficiary has a substantially identical interest only with a trust beneficiary from whom the unborn or unascertained beneficiary descends.
(e)  This section does not apply to a written instrument that modifies or terminates a trust in whole or in part unless the instrument is otherwise permitted by law.
Added by Acts 1999, 76th Leg., ch. 794, Sec. 3, eff. Sept. 1, 1999.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter C. Rights of Trustee › Section 114.061. Compensation

Sec. 114.061.  COMPENSATION.  (a)  Unless the terms of the trust provide otherwise and except as provided in Subsection (b) of this section, the trustee is entitled to reasonable compensation from the trust for acting as trustee.
(b)  If the trustee commits a breach of trust, the court may in its discretion deny him all or part of his compensation.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter C. Rights of Trustee › Section 114.062. Exoneration or Reimbursement for Tort

Sec. 114.062.  EXONERATION OR REIMBURSEMENT FOR TORT.  (a)  Except as provided in Subsection (b) of this section, a trustee who incurs personal liability for a tort committed in the administration of the trust is entitled to exoneration from the trust property if the trustee has not paid the claim or to reimbursement from the trust property if the trustee has paid the claim, if:
(1)  the trustee was properly engaged in a business activity for the trust and the tort is a common incident of that kind of activity;
(2)  the trustee was properly engaged in a business activity for the trust and neither the trustee nor an officer or employee of the trustee is guilty of actionable negligence or intentional misconduct in incurring the liability;  or
(3)  the tort increased the value of the trust property.
(b)  A trustee who is entitled to exoneration or reimbursement under Subdivision (3) of Subsection (a) is entitled to exoneration or reimbursement only to the extent of the increase in the value of the trust property.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter C. Rights of Trustee › Section 114.063. General Right to Reimbursement

Sec. 114.063.  GENERAL RIGHT TO REIMBURSEMENT.  (a)  A trustee may discharge or reimburse himself from trust principal or income or partly from both for:
(1)  advances made for the convenience, benefit, or protection of the trust or its property;
(2)  expenses incurred while administering or protecting the trust or because of the trustee's holding or owning any of the trust property;  and
(3)  expenses incurred for any action taken under Section 113.025.
(b)  The trustee has a lien against trust property to secure reimbursement under Subsection (a).
(c)  A potential trustee is entitled to reimbursement from trust principal or income or partly from both for reasonable expenses incurred for any action taken under Section 113.025(a) if:
(1)  a court orders reimbursement or the potential trustee has entered into a written agreement providing for reimbursement with the personal representative of the estate, the trustee of the trust, the settlor, the settlor's attorney-in-fact, the settlor's personal representative, or the person or entity designated in the trust instrument or will to appoint a trustee;  and
(2)  the potential trustee has been appointed trustee under the terms of the trust instrument or will or has received a written request to accept the trust from the settlor, the settlor's attorney-in-fact, the settlor's personal representative, or the person or entity designated in the trust instrument or will to appoint a trustee.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 1993, 73rd Leg., ch. 846, Sec. 31, eff. Sept. 1, 1993.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter C. Rights of Trustee › Section 114.064. Costs

Sec. 114.064.  COSTS.  (a)   In any proceeding under this code the court may make such award of costs and reasonable and necessary attorney's fees as may seem equitable and just.
Added by Acts 1985, 69th Leg., ch. 149, Sec. 4, eff. May 24, 1985.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter D. Third Persons › Section 114.081. Protection of Person Dealing With Trustee

Sec. 114.081.  PROTECTION OF PERSON DEALING WITH TRUSTEE.  (a)  A person who deals with a trustee in good faith and for fair value actually received by the trust is not liable to the trustee or the beneficiaries of the trust if the trustee has exceeded the trustee's authority in dealing with the person.
(b)  A person other than a beneficiary is not required to inquire into the extent of the trustee's powers or the propriety of the exercise of those powers if the person:
(1)  deals with the trustee in good faith; and
(2)  obtains:
(A)  a certification of trust described by Section 114.086; or
(B)  a copy of the trust instrument.
(c)  A person who in good faith delivers money or other assets to a trustee is not required to ensure the proper application of the money or other assets.
(d)  A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated, is protected from liability as if the former trustee were still a trustee.
(e)  Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 9, eff. September 1, 2007.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter D. Third Persons › Section 114.082. Conveyance by Trustee

Sec. 114.082.  CONVEYANCE BY TRUSTEE.  If property is conveyed or transferred to a trustee in trust but the conveyance or transfer does not identify the trust or disclose the names of the beneficiaries, the trustee may convey, transfer, or encumber the title of the property without subsequent question by a person who claims to be a beneficiary under the trust or who claims by, through, or under an undisclosed beneficiary.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Amended by Acts 1987, 70th Leg., ch. 683, Sec. 4, eff. Aug. 31, 1987.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter D. Third Persons › Section 114.0821. Liability of Trust Property

Sec. 114.0821.  LIABILITY OF TRUST PROPERTY.  Although trust property is held by the trustee without identifying the trust or its beneficiaries, the trust property is not liable to satisfy the personal obligations of the trustee.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.  Renumbered from Sec. 114.082(b) by Acts 1987, 70th Leg., ch. 683, Sec. 4, eff. Aug. 31, 1987.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter D. Third Persons › Section 114.083. Rights and Liabilities for Committing Torts

Sec. 114.083.  RIGHTS AND LIABILITIES FOR COMMITTING TORTS.  (a)  A personal liability of a trustee or a predecessor trustee for a tort committed in the course of the administration of the trust may be collected from the trust property if the trustee is sued in a representative capacity and the court finds that:
(1)  the trustee was properly engaged in a business activity for the trust and the tort is a common incident of that kind of activity;
(2)  the trustee was properly engaged in a business activity for the trust and neither the trustee nor an officer or employee of the trustee is guilty of actionable negligence or intentional misconduct in incurring the liability;  or
(3)  the tort increased the value of the trust property.
(b)  A trust that is liable for the trustee's tort under Subdivision (3) of Subsection (a) is liable only to the extent of the permanent increase in value of the trust property.
(c)  A plaintiff in an action against the trustee as the representative of the trust does not have to prove that the trustee could have been reimbursed by the trust if the trustee had paid the claim.
(d)  Subject to the rights of exoneration or reimbursement under Section 114.062, the trustee is personally liable for a tort committed by the trustee or by the trustee's agents or employees in the course of their employment.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter D. Third Persons › Section 114.084. Contracts of Trustee

Sec. 114.084.  CONTRACTS OF TRUSTEE.  (a)  If a trustee or a predecessor trustee makes a contract that is within his power as trustee and a cause of action arises on the contract, the plaintiff may sue the trustee in his representative capacity, and a judgment rendered in favor of the plaintiff is collectible by execution against the trust property.  The plaintiff may sue the trustee individually if the trustee made the contract and the contract does not exclude the trustee's personal liability.
(b)  The addition of "trustee" or "as trustee" after the signature of a trustee who is party to a contract is prima facie evidence of an intent to exclude the trustee from personal liability.
(c)  In an action on a contract against a trustee in the trustee's representative capacity the plaintiff does not have to prove that the trustee could have been reimbursed by the trust if the trustee had paid the claim.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter D. Third Persons › Section 114.085. Partnerships

Sec. 114.085.  PARTNERSHIPS.  (a)  To the extent allowed by law, a trustee who takes the place of a deceased partner in a general partnership in accordance with the articles of partnership is liable to third persons only to the extent of the:
(1)  deceased partner's capital in the partnership;  and
(2)  trust funds held by the trustee.
(b)  A trustee who contracts to enter a general partnership in its capacity as trustee shall limit, to the extent allowed by law, the trust's liability to:
(1)  the trust assets contributed to the partnership;  and
(2)  other assets of the trust under the management of the contracting trustee.
(c)  If another provision of this subtitle conflicts with this section, this section controls.  This section does not exonerate a trustee from liability for negligence.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons › Subchapter D. Third Persons › Section 114.087. Instrument Naming Trust as Party

Sec. 114.087.  INSTRUMENT NAMING TRUST AS PARTY.  (a)  The trustee of a trust is considered for all purposes to be the named party to an instrument that names the trust as a party to the instrument in any capacity, unless the trust is a legal entity under state law.
(b)  Subsection (a) is effective as of the effective date of the original instrument.
(c)  The trustee of a trust that is the named party to a recorded instrument may be, but is not required to be, identified by a correction instrument under Section 5.028.
(d)  A document purporting to be a certification of trust under Section 114.086 that is recorded in the county in which real property of the trust is located is presumed to correctly identify the trust and the trustee and may be relied upon by a good faith purchaser or lender for value.
Added by Acts 2023, 88th Leg., R.S., Ch. 345 (S.B. 801), Sec. 1, eff. September 1, 2023.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 115 - Jurisdiction, Venue, and Proceedings › Subchapter A. Jurisdiction and Venue › Section 115.001. Jurisdiction

Sec. 115.001.  JURISDICTION.  (a)  Except as provided by Subsection (d) of this section, a district court has original and exclusive jurisdiction over all proceedings by or against a trustee and all proceedings concerning trusts, including proceedings to:
(1)  construe a trust instrument;
(2)  determine the law applicable to a trust instrument;
(3)  appoint or remove a trustee;
(4)  determine the powers, responsibilities, duties, and liability of a trustee;
(5)  ascertain beneficiaries;
(6)  make determinations of fact affecting the administration, distribution, or duration of a trust;
(7)  determine a question arising in the administration or distribution of a trust;
(8)  relieve a trustee from any or all of the duties, limitations, and restrictions otherwise existing under the terms of the trust instrument or of this subtitle;
(9)  require an accounting by a trustee, review trustee fees, and settle interim or final accounts; and
(10)  surcharge a trustee.
(a-1)  The list of proceedings described by Subsection (a) over which a district court has exclusive and original jurisdiction is not exhaustive.  A district court has exclusive and original jurisdiction over a proceeding by or against a trustee or a proceeding concerning a trust under Subsection (a) whether or not the proceeding is listed in Subsection (a).
(b)  The district court may exercise the powers of a court of equity in matters pertaining to trusts.
(c)  The court may intervene in the administration of a trust to the extent that the court's jurisdiction is invoked by an interested person or as otherwise provided by law.  A trust is not subject to continuing judicial supervision unless the court orders continuing judicial supervision.
(d)  The jurisdiction of the district court is exclusive except for jurisdiction conferred by law on:
(1)  a statutory probate court;
(2)  a court that creates a trust under Subchapter B, Chapter 1301, Estates Code;
(3)  a court that creates a trust under Section 142.005;
(4)  a justice court under Chapter 27, Government Code; or
(5)  a county court at law.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984;  Acts 1997, 75th Leg., ch. 1375, Sec. 5, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 22, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 11, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 4, eff. September 1, 2011.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.060, eff. September 1, 2017.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 115 - Jurisdiction, Venue, and Proceedings › Subchapter B. Parties, Procedure, and Judgments › Section 115.011. Parties

Sec. 115.011.  PARTIES.  (a)  Any interested person may bring an action under Section 115.001 of this Act.
(b)  Contingent beneficiaries designated as a class are not necessary parties to an action under Section 115.001.  The only necessary parties to such an action are:
(1)  a beneficiary of the trust on whose act or obligation the action is predicated;
(2)  a beneficiary of the trust designated by name, other than a beneficiary whose interest has been distributed, extinguished, terminated, or paid;
(3)  a person who is actually receiving distributions from the trust estate at the time the action is filed; and
(4)  the trustee, if a trustee is serving at the time the action is filed.
(c)  The attorney general shall be given notice of any proceeding involving a charitable trust as provided by Chapter 123 of this code.
(d)  A beneficiary of a trust may intervene and contest the right of the plaintiff to recover in an action against the trustee as representative of the trust for a tort committed in the course of the trustee's administration or on a contract executed by the trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984;  Acts 1995, 74th Leg., ch. 172, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 23, eff. January 1, 2006.
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 6, eff. September 1, 2011.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 115 - Jurisdiction, Venue, and Proceedings › Subchapter B. Parties, Procedure, and Judgments › Section 115.012. Rules of Procedure

Sec. 115.012.  RULES OF PROCEDURE.  Except as otherwise provided, all actions instituted under this subtitle are governed by the Texas Rules of Civil Procedure and the other statutes and rules that are applicable to civil actions generally.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 115 - Jurisdiction, Venue, and Proceedings › Subchapter B. Parties, Procedure, and Judgments › Section 115.013. Pleadings and Judgments

Sec. 115.013.  PLEADINGS AND JUDGMENTS.  (a)  Actions and proceedings involving trusts are governed by this section.
(b)  An affected interest shall be described in pleadings that give reasonable information to an owner by name or class, by reference to the instrument creating the interest, or in other appropriate manner.
(c)  A person is bound by an order binding another in the following cases:
(1)  an order binding the sole holder or all coholders of a power of revocation or a presently exercisable general power of appointment, including one in the form of a power of amendment, binds other persons to the extent their interests, as objects, takers in default, or otherwise are subject to the power;
(2)  to the extent there is no conflict of interest between them or among persons represented:
(A)  an order binding a guardian of the estate or a guardian ad litem binds the ward;  and
(B)  an order binding a trustee binds beneficiaries of the trust in proceedings to review the acts or accounts of a prior fiduciary and in proceedings involving creditors or other third parties;
(3)  if there is no conflict of interest and no guardian of the estate or guardian ad litem has been appointed, a parent may represent his minor child as guardian ad litem or as next friend;  and
(4)  an unborn or unascertained person who is not otherwise represented is bound by an order to the extent his interest is adequately represented by another party having a substantially identical interest in the proceeding.
(d)  Notice under Section 115.015 shall be given either to a person who will be bound by the judgment or to one who can bind that person under this section, and notice may be given to both.  Notice may be given to unborn or unascertained persons who are not represented under Subdivision (1) or (2) of Subsection (c) by giving notice to all known persons whose interests in the proceedings are substantially identical to those of the unborn or unascertained persons.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 4, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 9 - Trusts › Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts › Chapter 115 - Jurisdiction, Venue, and Proceedings › Subchapter B. Parties, Procedure, and Judgments › Section 115.014. Guardian or Attorney Ad Litem

Sec. 115.014.  GUARDIAN OR ATTORNEY AD LITEM.  (a)  At any point in a proceeding a court may appoint a guardian ad litem to represent the interest of a minor, an incapacitated, unborn, or unascertained person, or person whose identity or address is unknown, if the court determines that representation of the interest otherwise would be inadequate.  If there is not a conflict of interests, a guardian ad litem may be appointed to represent several persons or interests.
(b)  At any point in a proceeding a court may appoint an attorney ad litem to represent any interest that the court considers necessary, including an attorney ad litem to defend an action under Section 114.083 for a beneficiary of the trust who is a minor or who has been adjudged incompetent, if the court determines that representation of the interest otherwise would be inadequate.
(c)  A guardian ad litem may consider general benefit accruing to the living members of a person's family.
(d)  A guardian ad litem is entitled to reasonable compensation for services in the amount set by the court to be taxed as costs in the proceeding.
(e)  An attorney ad litem is entitled to reasonable compensation for services in the amount set by the court in the manner provided by Section 114.064.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 24, eff. January 1, 2006.
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 5, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 6, eff. September 1, 2009.
Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 5, eff. June 9, 2023.