When a trustee fails to act in your best interest, the consequences can be devastating. Mismanaged funds, unauthorized distributions, and hidden financial decisions can leave beneficiaries without the inheritance they deserve. If you suspect trustee misconduct, understanding your legal options is the first step toward protecting your rights. A trust litigation attorney can help you challenge improper trustee conduct and recover what belongs to you.
Why Choose Staubus, Blankenship, Legere and Walker PLLC for Your Trust Litigation Needs
Staubus, Blankenship, Legere and Walker PLLC brings over 100 combined years of legal experience to trust and estate disputes. Our attorneys focus on probate, trust, and guardianship litigation. This focus gives us knowledge of Texas law and the Dallas probate courts. We represent both beneficiaries seeking to hold trustees accountable and trustees defending their actions. This means we understand all sides of trust disputes.
Our credentials reflect our commitment to excellence. P. Keith Staubus has been recognized as a Super Lawyer since 2005 and selected for Best Lawyers in America. Joseph E. Legere and Kelly C. Walker also hold Super Lawyer designations. The firm earned a Tier One Best Law Firm ranking from Best Lawyers for trust and estate litigation. We maintain an AV rating, the highest available, from Martindale-Hubbell. When you work with us, you get the resources of a larger firm with the personalized attention of a boutique practice.
Understanding Breach of Fiduciary Duty in Texas Trusts
A trustee holds a position of trust. Under the Texas Trust Code, trustees must follow specific duties when managing trust assets. These duties include:
- Loyalty (acting in beneficiaries’ best interests)
- Care (managing assets prudently)
- Impartiality (treating all beneficiaries fairly)
- Good faith (acting honestly)
- Accounting (keeping detailed records)
- Transparency (providing information to beneficiaries)
When a trustee fails to follow these duties, it constitutes a breach of fiduciary duty. This breach can take many forms. A trustee might use trust funds for personal expenses. They might fail to invest assets wisely. Or they might ignore the trust document’s instructions. The breach doesn’t require intentional wrongdoing. Even negligence or carelessness can violate fiduciary duties. Knowing what constitutes a breach helps you challenge trustee misconduct and protect your inheritance rights.
Common Signs of Trustee Misconduct
Trustee misconduct often goes undetected because beneficiaries don’t know what to look for. Recognizing warning signs helps you identify problems early. You can take action before more damage occurs. Understanding these red flags is critical for the representation of trust beneficiaries.
Accounting Failures and Lack of Transparency
Trustees have a legal obligation to provide regular accountings to beneficiaries. These accountings should detail all trust income, expenses, distributions, and asset values. When a trustee refuses to provide accountings, it’s a red flag. When they provide incomplete information, that’s also concerning. Beneficiaries have the right to know how their trust assets are being managed.
If you request an accounting and the trustee delays, avoids the request, or provides vague information, you may have grounds to challenge their conduct. Lack of transparency often indicates the trustee has something to hide. Issues with trust accounting can constitute grounds for trustee removal and may require a formal accounting. In Texas, beneficiaries can demand an accounting of trust assets under state law.
Improper Distributions and Self-Dealing
Trustees sometimes make distributions that don’t align with the trust document. They may make decisions that benefit themselves rather than the beneficiaries. Self-dealing occurs when a trustee uses trust assets for personal gain. This might include selling trust property to themselves at below-market prices. It might include borrowing trust funds without repayment.
Improper distributions happen when a trustee gives money to beneficiaries without authorization. Or they give amounts that violate the trust terms. These actions directly harm beneficiaries. They represent serious breaches of fiduciary duty. When beneficiaries face these issues, representation of trust beneficiaries becomes essential to protect their interests. Our firm also represents trustees defending their actions in contested matters.
Your Options for Challenging Trustee Misconduct
You have several legal remedies available when facing trustee misconduct. The right option depends on your specific situation and goals. Some beneficiaries seek to remove the trustee. They want to appoint someone more trustworthy. Others want the trustee to account for mismanaged funds. They want to recover stolen assets. Still others pursue monetary damages for losses caused by the trustee’s actions.
Acting quickly matters. Texas law imposes time limits on trust litigation claims. Waiting too long can bar your right to sue. An experienced trust litigation attorney can evaluate your situation. They can explain your options. They can help you choose the path that best protects your interests. Understanding your legal options for trust disputes is essential.
Trustee Removal Under Texas Law
Removing a trustee is often the most effective remedy when misconduct is severe. Texas law allows beneficiaries to petition the court to remove a trustee for several reasons:
- Breach of fiduciary duty
- Failure to follow the trust terms
- Incapacity
- Unfitness to serve
The court will consider whether removal is in the beneficiaries’ best interests. For more information about the removal process, see our guide on trust contests.
The removal process begins with filing a petition in the probate court. You’ll need to present evidence of the trustee’s misconduct. This might include accountings, communications, expert testimony, or other documentation. You need to show the breach clearly. The trustee has the right to respond and defend their actions. If the court agrees that removal is warranted, it will appoint a successor trustee. This trustee will take over management of the trust assets.
Trustee removal doesn’t happen automatically. You need solid evidence and skilled legal representation. You must convince the court that removal serves the beneficiaries’ interests. Our attorneys have successfully removed trustees in contested proceedings. We can guide you through this process. For more information about trust modifications and terminations, contact our office.
Frequently Asked Questions About Trust Litigation
What is the statute of limitations for challenging trustee misconduct in Texas?
Texas law generally allows beneficiaries four years from the date they discover the trustee’s misconduct to file a lawsuit. However, this timeline can vary depending on the specific claim and circumstances. Some claims have shorter deadlines. Others may have longer periods. This is why acting quickly and consulting an attorney promptly is critical. Learn more about trust litigation timelines and deadlines.
Can I remove a trustee without going to court?
In some cases, yes. If the trustee agrees to resign, you can avoid litigation. However, if the trustee refuses to step down, you’ll need to file a petition with the probate court. The court will evaluate whether removal is appropriate. They will base this decision on the evidence you present. Our trust litigation team can guide you through this process.
What evidence do I need to prove breach of fiduciary duty?
You’ll need documentation showing the trustee failed to follow their legal duties. This might include:
- Trust accountings
- Bank statements
- Communications between you and the trustee
- Expert reports from forensic accountants
- Testimony from witnesses
The specific evidence depends on the type of breach you’re alleging. Understanding fiduciary duties is essential to building a strong case.
How much does trust litigation cost?
Trust litigation costs vary based on the complexity of your case. The amount of assets involved matters too. Whether the matter settles or goes to trial affects costs. We offer flexible fee arrangements for trust litigation. We can discuss costs during your initial consultation. Many beneficiaries find that recovering mismanaged assets justifies the legal investment.
Can a trustee be held personally liable for damages?
Yes. If a trustee breaches their fiduciary duty and causes financial harm, they can be held personally liable. This means the trustee may have to pay you directly from their own assets. They won’t just pay from trust funds. This personal liability is a powerful incentive for trustees to act properly. Beneficiaries can pursue damages recovery through litigation.
What if the trustee claims they acted in good faith?
Good faith is not a defense to breach of fiduciary duty. Even if a trustee believed they were acting correctly, they can still be held liable. Their actions violated fiduciary duties or trust terms. The law holds trustees to an objective standard of conduct. We don’t consider their subjective intentions. This principle is established under the Texas Trust Code.
Take Action to Protect Your Trust Rights
Trustee misconduct threatens your inheritance and financial security. The longer you wait, the more damage can occur. It becomes harder to recover lost assets. If you suspect your trustee is breaching fiduciary duties, you need experienced legal representation. If they’re failing to provide accounting, making improper distributions, or engaging in self-dealing, contact us.
Staubus, Blankenship, Legere and Walker PLLC has helped countless beneficiaries hold trustees accountable. We help them recover what belongs to them. We understand Texas trust law and have experience with the probate court system. And, we know how to build compelling cases for trustee removal and damages recovery. Our estate litigation practice covers all aspects of trust disputes.
Contact Staubus, Blankenship, Legere and Walker PLLC today at (214) 833-0100 to schedule a consultation. We’ll review your situation, explain your legal options, and discuss how we can help protect your rights. You can also learn more about our trust litigation services on our trust litigation page. Visit our about us page to learn more about our firm and the attorneys who serve you.
Don’t let trustee misconduct go unchallenged. Call (214) 833-0100 now.
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