LIABILITY OF SUCCESSOR TRUSTEE FOR BREACH OF TRUST BY PREDECESSOR
Known as the Texas Trust Code
The act spans §§ 111–116 (165 sections).
Applied in 2 court decisions — leading case Hoenig v. Texas Commerce Bank, N.A. (1996)
Most recently applied in Estate of Hoskins (September 2016)
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff
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.
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.