Tex. Codes » Property Code · TITLE 9. TRUSTS · SUBTITLE B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS · CHAPTER 114. LIABILITIES, RIGHTS, AND REMEDIES OF TRUSTEES, BENEFICIARIES, AND THIRD PERSONS
Texas Codes

Tex. Prop. Code § 114.001 (2026)

Liability Of Trustee To Beneficiary

✓ current as of May 2026
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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).
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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.”
Casa Orlando Apts., Ltd. v. Fed. Nat'l Mortg. Ass'n, 624 F.3d 185 (5th Cir. 2010). “Code 53-12-193; Tex. Prop.Code § 114.001. 58 . Rainsville Bank v.”
Howard F. Lederer v. James C. Lederer, Susan Lederer Russell, Kathleen T. Lederer, Marjorie E. Lederer, 561 S.W.3d 683 (Tex. App. 2018). “See Tex. Prop. Code §§ 114.001(a), 114.061(a).”
Lyco Acquisition 1984 Ltd. P'ship v. First Nat'l Bank of Amarillo, 860 S.W.2d 117 (Tex. App. 1993). “Tex.Prop.Code Ann. § 114.001(a) (Vernon Supp.”
Lincoln Fin. Advisors Corp. v. Bridgette Ards, Acting as Next Friend for Her Daughter, Gabrielle Ards (Tex. App. 2019). · cites it 3× “; see also Tex. Prop. Code §§ 114.001 (addressing liability of trustee to beneficiary for breach of trust), .”
Victor Hilderbran, Homer Ray Smith, Ramon Castro, Dean Paret & Brad Bradley v. Texas Sw. Council Inc., Boy Scouts of Am. (Tex. App. 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 (Tex. App. 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 (Tex. App. 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 (5th Cir. 2022). “Tex. Prop. Code § 114.001(a) (“The trustee is accountable to a beneficiary for the trust property .”
Darrell Williams, in His Capacity as Tr. As Indep. of the Est. of Thea Elaine Williams-Douglas & Individually v. Marcia Williams, as Agent for Amira Elaine Douglas (Tex. App. 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. as Tr. of the Bob & Elizabeth Lanier Descendants Trusts for Robert Clayton Lanier, Jr. v. Jay Houren, as Indep. of the Est. of Robert C. Lanier (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. & Elise Leake, as Co-Trs. of the Ahlgren Mgmt. Trust (Tex. App. 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.”
Show all 14 citing cases →
— Tex. Prop. Code § 114.001(a) — 4 cases
Howard F. Lederer v. James C. Lederer, Susan Lederer Russell, Kathleen T. Lederer, Marjorie E. Lederer, 561 S.W.3d 683 (Tex. App. 2018). “See Tex. Prop. Code §§ 114.001(a), 114.061(a).”
Lyco Acquisition 1984 Ltd. P'ship v. First Nat'l Bank of Amarillo, 860 S.W.2d 117 (Tex. App. 1993). “Tex.Prop.Code Ann. § 114.001(a) (Vernon Supp.”
Victor Hilderbran, Homer Ray Smith, Ramon Castro, Dean Paret & Brad Bradley v. Texas Sw. Council Inc., Boy Scouts of Am. (Tex. App. 2024). “See TEX. PROP. CODE ANN. § 114.001(a) (“The trustee is accountable to a beneficiary for the trust property .”
Kreit v. Quinn (5th Cir. 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 (Tex. App. 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 (Tex. App. 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 (Tex. App. 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…”
Lincoln Fin. Advisors Corp. v. Bridgette Ards, Acting as Next Friend for Her Daughter, Gabrielle Ards (Tex. App. 2019). “; see also Tex. Prop. Code §§ 114.001 (addressing liability of trustee to beneficiary for breach of trust), .”
Darrell Williams, in His Capacity as Tr. As Indep. of the Est. of Thea Elaine Williams-Douglas & Individually v. Marcia Williams, as Agent for Amira Elaine Douglas (Tex. App. 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).”
Mark R. Riley v. Robert Alpert (Tex. App. 2012).
— Tex. Prop. Code § 114.001(c)(1) — 1 case
Austin Trust Co. as Tr. of the Bob & Elizabeth Lanier Descendants Trusts for Robert Clayton Lanier, Jr. v. Jay Houren, as Indep. of the Est. of Robert C. Lanier (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. & Elise Leake, as Co-Trs. of the Ahlgren Mgmt. Trust (Tex. App. 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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