Tex. Prop. Code § 114.031

LIABILITY OF BENEFICIARY TO TRUSTEE

Known as the Texas Trust Code

The act spans §§ 111–116 (165 sections).

Applied in 1 court decision — leading case Sommers v. Katy Steel Co. (In Re Contractor Technology, Ltd.) (2006)

Most recently applied in Sommers v. Katy Steel Co. (In Re Contractor Technology, Ltd.) (June 2006)

Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff

(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.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.