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Current as of January 01, 2024 | Updated by Findlaw Staff
(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.
Cite this article: FindLaw.com - Texas Property Code - PROP § 114.062. Exoneration or Reimbursement for Tort - last updated January 01, 2024 | https://codes.findlaw.com/tx/property-code/prop-sect-114-062/
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 before relying on it for your legal needs.
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