Sec. 114.001. LIABILITY OF TRUSTEE TO BENEFICIARY. (a) The trustee is accountable to a beneficiary for the trust property and for any profit made by the trustee through or arising out of the administration of the trust, even though the profit does not result from a breach of trust; provided, however, that the trustee is not required to return to a beneficiary the trustee's compensation as provided by this subtitle, by the terms of the trust instrument, or by a writing delivered to the trustee and signed by all beneficiaries of the trust who have full legal capacity.
(b) The trustee is not liable to the beneficiary for a loss or depreciation in value of the trust property or for a failure to make a profit that does not result from a failure to perform the duties set forth in this subtitle or from any other breach of trust.
(c) A trustee who commits a breach of trust is chargeable with any damages resulting from such breach of trust, including but not limited to:
(1) any loss or depreciation in value of the trust estate as a result of the breach of trust;
(2) any profit made by the trustee through the breach of trust; or
(3) any profit that would have accrued to the trust estate if there had been no breach of trust.
(d) The trustee is not liable to the beneficiary for a loss or depreciation in value of the trust property or for acting or failing to act under Section 113.025 or under any other provision of this subtitle if the action or failure to act relates to compliance with an environmental law and if there is no gross negligence or bad faith on the part of the trustee. The provision of any instrument governing trustee liability does not increase the liability of the trustee as provided by this section unless the settlor expressly makes reference to this subsection.
(e) The trustee has the same protection from liability provided for a fiduciary under 42 U.S.C. Section 9607(n).
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 13, eff. Oct. 2, 1984; Acts 1989, 71st Leg., ch. 341, Sec. 2, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 846, Sec. 30, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 263, Sec. 1, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1103, Sec. 8, eff. Jan. 1, 2004.
Notes of Decisions
Cited in
14
cases (
5 in the last 5 years), 1993–2024 · leading case:
Hagen v. Hagen, 282 S.W.3d 899 (Tex. 2009).
Hagen v. Hagen, 282 S.W.3d 899 (Tex. 2009).
· cites it 2× “Flannery, Military Disability Election and the Distribution of Marital Property Upon Divorce, 56 Cath. U.L.REV.”
Lincoln Fin. Advisors Corp. v. Bridgette Ards, No. 03-18-00437-CV (Tex. App.—Austin Dec. 19, 2019).
· cites it 3× “; see also Tex. Prop. Code §§ 114.001 (addressing liability of trustee to beneficiary for breach of trust), .”
Victor Hilderbran v. Texas Sw. Council Inc., No. 04-22-00736-CV (Tex. App.—San Antonio June 26, 2024).
· cites it 2× “See TEX. PROP. CODE ANN. § 114.001(a) (“The trustee is accountable to a beneficiary for the trust property .”
Est. of Shirley L. Benson, No. 04-15-00087-CV (Tex. App.—San Antonio Sept. 9, 2015).
· cites it 2× “; see also TEX. PROP. CODE § 114.001(a)(5). As a result, we hold the probate court did not abuse its discretion when it ordered the appointment of - 12 - 04-15-00087-CV co-receivers as authorized by section 114.”
Est. of Shirley L. Benson, No. 04-15-00087-CV (Tex. App.—San Antonio Mar. 6, 2015).
· cites it 2× “001(c) provides that “[a] trustee who commits a breach of trust is chargeable with any damages resulting from such breach of trust, including but not limited to: (1) any loss or depreciation in value of the trust estate as a result of the breach of trust; (2) any profit made by…”
Kreit v. Quinn, No. 21-20067 (5th Cir. Feb. 11, 2022).
“Tex. Prop. Code § 114.001(a) (“The trustee is accountable to a beneficiary for the trust property .”
Darrell Williams v. Marcia Williams, No. 03-21-00109-CV (Tex. App.—Austin Nov. 4, 2022).
“Tex. Prop. Code § 114.001(c) (providing that trustee is liable for “any damages resulting from” breach of trust, including lost trust property, profit to trustee from breach, and profit trust would have realized without breach).”
Austin Trust Co. v. Jay Houren, 664 S.W.3d 35 (Tex. 2023).
“” TEX. PROP. CODE § 114.001(c)(1). However, as noted, “[a] beneficiary who has full legal capacity and is acting on full information may relieve a trustee from any duty, responsibility, restriction, or liability that would otherwise be imposed on the trustee by this subtitle,…”
Frank Ahlgren III & the Copernican, LLC v. Frank Ahlgren Jr., No. 13-22-00029-CV (Tex. App.—Corpus Christi–Edinburg June 15, 2023).
“]” TEX. PROP. CODE ANN. § 114.001(c)(2). A profit award does not have to be susceptible to an exact calculation, but the amount must be shown by competent evidence with reasonable certainty.”
Tex. Prop. Code § 114.001(a): 4 cases
Kreit v. Quinn, No. 21-20067 (5th Cir. Feb. 11, 2022).
“Tex. Prop. Code § 114.001(a) (“The trustee is accountable to a beneficiary for the trust property .”
Tex. Prop. Code § 114.001(a)(5): 1 case
Est. of Shirley L. Benson, No. 04-15-00087-CV (Tex. App.—San Antonio Sept. 9, 2015).
“; see also TEX. PROP. CODE § 114.001(a)(5). As a result, we hold the probate court did not abuse its discretion when it ordered the appointment of - 12 - 04-15-00087-CV co-receivers as authorized by section 114.”
Tex. Prop. Code § 114.001(b): 1 case
Est. of Shirley L. Benson, No. 04-15-00087-CV (Tex. App.—San Antonio Sept. 9, 2015).
“; see also TEX. PROP. CODE § 114.001(a)(5). As a result, we hold the probate court did not abuse its discretion when it ordered the appointment of - 12 - 04-15-00087-CV co-receivers as authorized by section 114.”
Tex. Prop. Code § 114.001(c): 4 cases
Est. of Shirley L. Benson, No. 04-15-00087-CV (Tex. App.—San Antonio Mar. 6, 2015).
“001(c) provides that “[a] trustee who commits a breach of trust is chargeable with any damages resulting from such breach of trust, including but not limited to: (1) any loss or depreciation in value of the trust estate as a result of the breach of trust; (2) any profit made by…”
Darrell Williams v. Marcia Williams, No. 03-21-00109-CV (Tex. App.—Austin Nov. 4, 2022).
“Tex. Prop. Code § 114.001(c) (providing that trustee is liable for “any damages resulting from” breach of trust, including lost trust property, profit to trustee from breach, and profit trust would have realized without breach).”
Tex. Prop. Code § 114.001(c)(1): 1 case
Austin Trust Co. v. Jay Houren, 664 S.W.3d 35 (Tex. 2023).
“” TEX. PROP. CODE § 114.001(c)(1). However, as noted, “[a] beneficiary who has full legal capacity and is acting on full information may relieve a trustee from any duty, responsibility, restriction, or liability that would otherwise be imposed on the trustee by this subtitle,…”
Tex. Prop. Code § 114.001(c)(2): 1 case
Frank Ahlgren III & the Copernican, LLC v. Frank Ahlgren Jr., No. 13-22-00029-CV (Tex. App.—Corpus Christi–Edinburg June 15, 2023).
“]” TEX. PROP. CODE ANN. § 114.001(c)(2). A profit award does not have to be susceptible to an exact calculation, but the amount must be shown by competent evidence with reasonable certainty.”
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