Tex. Prop. Code Section 114.003
Powers to Direct: Charitable Trusts

(a)

In this section, “charitable trust” has the meaning assigned by Section 123.001 (Definitions).

(a-1)

The terms of a charitable trust may give a trustee or other person a power to direct the modification or termination of the trust.

(b)

If the terms of a charitable trust give a person the power to direct certain actions of the trustee, the trustee shall act in accordance with the person’s direction unless:

(1)

the direction is manifestly contrary to the terms of the trust; or

(2)

the trustee knows the direction would constitute a serious breach of a fiduciary duty that the person holding the power to direct owes to the beneficiaries of the trust.

(c)

A person, other than a beneficiary, who holds a power to direct with respect to a charitable trust is presumptively a fiduciary required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct with respect to a charitable trust is liable for any loss that results from a breach of the person’s fiduciary duty.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 19, eff. January 1, 2006.
Acts 2015, 84th Leg., R.S., Ch. 1108 (H.B. 3190), Sec. 1, eff. June 19, 2015.

Source: Section 114.003 — Powers to Direct: Charitable Trusts, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­114.­htm#114.­003 (accessed Apr. 13, 2024).

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Accessed:
Apr. 13, 2024

§ 114.003’s source at texas​.gov