Current as of April 14, 2021 | Updated by FindLaw Staff
Welcome to FindLaw's Cases & Codes, a free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.
(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).
Cite this article: FindLaw.com - Texas Property Code - PROP § 114.001. Liability of Trustee to Beneficiary - last updated April 14, 2021 | https://codes.findlaw.com/tx/property-code/prop-sect-114-001/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.