Property Code › Title 9 › Chapter 114 › Subchapter A

Texas Property Code § 114.007

Exculpation of Trustee

Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons · Liability of Trustee

(a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term relieves a trustee of liability for:

(1) a breach of trust committed:

(A) in bad faith;

(B) intentionally; or

(C) with reckless indifference to the interest of a beneficiary; or

(2) any profit derived by the trustee from a breach of trust.

(b) A term in a trust instrument relieving the trustee of liability for a breach of trust is ineffective to the extent that the term is inserted in the trust instrument as a result of an abuse by the trustee of a fiduciary duty to or confidential relationship with the settlor.

(c) This section applies only to a term of a trust that may otherwise relieve a trustee from liability for a breach of trust. Except as provided in Section 111.0035, this section does not prohibit the settlor, by the terms of the trust, from expressly:

(1) relieving the trustee from a duty or restriction imposed by this subtitle or by common law; or

(2) directing or permitting the trustee to do or not to do an action that would otherwise violate a duty or restriction imposed by this subtitle or by common law.

Official text of the Texas Property Code as published by the Texas Legislative Council.

Official source
Legislative history

Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 21, eff. January 1, 2006.

This section refers to

§ 111.0035

Sections that refer to this one

§ 111.0035