Sec. 114.002. LIABILITY OF SUCCESSOR TRUSTEE FOR BREACH OF TRUST BY PREDECESSOR. 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.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Structure Texas Statutes
Subtitle B - Texas Trust Code: Creation, Operation, and Termination of Trusts
Chapter 114 - Liabilities, Rights, and Remedies of Trustees, Beneficiaries, and Third Persons
Subchapter A. Liability of Trustee
Section 114.001. Liability of Trustee to Beneficiary
Section 114.002. Liability of Successor Trustee for Breach of Trust by Predecessor
Section 114.003. Powers to Direct: Charitable Trusts
Section 114.0031. Directed Trusts; Advisors
Section 114.004. Actions Taken Prior to Knowledge or Notice of Facts
Section 114.005. Release of Liability by Beneficiary
Section 114.006. Liability of Cotrustees for Acts of Other Cotrustees