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Current as of April 14, 2021 | Updated by FindLaw Staff
(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.
Cite this article: FindLaw.com - Texas Property Code - PROP § 114.003. Powers to Direct: Charitable Trusts - last updated April 14, 2021 | https://codes.findlaw.com/tx/property-code/prop-sect-114-003/
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.
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