Tex.
Prop. Code Section 114.007
Exculpation 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 (Default and Mandatory Rules; Conflict Between Terms and Statute), 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.
Source:
Section 114.007 — Exculpation of Trustee, https://statutes.capitol.texas.gov/Docs/PR/htm/PR.114.htm#114.007 (accessed Apr. 20, 2024).
