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Texas Statutes (Last Updated: January 4, 2014) |
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PROPERTY CODE |
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Title 9. TRUSTS |
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Subtitle B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS |
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Chapter 114. LIABILITIES, RIGHTS, AND REMEDIES OF TRUSTEES, BENEFICIARIES, AND THIRD PERSONS |
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Subchapter A. LIABILITY OF TRUSTEE |
Sec. 114.003. POWERS TO DIRECT
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(a) The terms of a 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 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 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 is liable for any loss that results from a breach of the person's fiduciary duty.