What is a Texas trustee's core duty?

Administer the trust in good faith according to its terms and the Texas Trust Code (Prop. Code s. 113.051) — and in the absence of contrary terms, with the care and skill an ordinarily prudent person would exercise managing their own affairs. Loyalty, impartiality among beneficiaries, and accountability flow from that base and the fiduciary principles the Code layers on.

What is the prudent-investor rule?

Chapter 117 (Texas's Uniform Prudent Investor Act): invest and manage as a prudent investor would, judged at the PORTFOLIO level in light of the trust's purposes and risk/return objectives (s. 117.004), with a duty to diversify unless special circumstances say otherwise (s. 117.005) and to review assets promptly at inception (s. 117.006). Individual picks aren't judged in isolation — the strategy is.

What powers does a Texas trustee have?

Broad ones by default: the general powers of subchapter A (ss. 113.001-113.002) plus general authority to manage and invest trust property (s. 113.006) — all subject to the instrument, which can expand or LIMIT them (s. 113.001). Read the trust first; the Code fills gaps, the instrument controls.

How strict is trustee accountability?

Strict. The trustee is accountable to beneficiaries for the trust property AND for any profit made through the administration — even profit that involved no breach at all (s. 114.001(a)). Self-dealing rules and the duty of loyalty have teeth in Texas courts.

Can the trust instrument waive all of this?

Not all. Section 111.0035(b) lists what trust terms cannot override: the limits on exculpation clauses (s. 114.007 — bad-faith, intentional, or reckless-indifference breaches cannot be exculpated), the irrevocable-trust accounting-demand duty (s. 113.151) for current and presumptive-remainder beneficiaries, the duty to act in good faith per the trust's purposes, and the court's powers to modify, remove a trustee (s. 113.082), or adjust and disgorge compensation. Everything else is default rules the settlor may tune.

Texas Trustee Duties & Powers: What the Trust Code Requires

Last updated July 18, 2026

A Texas trustee’s job is defined by two layers: the trust instrument (which controls where it speaks) and the Texas Trust Code (Prop. Code, title 9), which supplies the duties, powers, and liability rules that fill every gap — and a short list of rules no instrument can waive (s. 111.0035). This is general information about Texas law, not legal advice.

The duty stack

Administer in good faith, per the terms (s. 113.051)

The base duty: follow the instrument and the Code, with prudent-person care absent contrary terms. Every other duty hangs off this one.

Invest as a prudent investor (ch. 117)

Portfolio-level prudence (s. 117.004), diversification (s. 117.005), and a prompt inception review of inherited assets (s. 117.006). Keeping the decedent's concentrated stock position 'because they loved it' is a classic breach pattern.

Account to beneficiaries (ss. 113.151-113.152)

A beneficiary's written demand starts a 90-day clock to deliver a statement of accounts with the s. 113.152 contents — see the accounting page for the mechanics.

Strict accountability (s. 114.001)

Accountable for the property and any profit made through the administration — even without a breach. Loyalty is not aspirational in Texas; it is enforced through disgorgement.

The powers framework

Default powers are broad — the subchapter A grants (ss. 113.001–113.002) and general management and investment authority (s. 113.006) — but s. 113.001 makes them expressly subject to the instrument. The reading order that keeps trustees out of trouble: the trust first, the Code second, and where the two conflict on a default rule, the trust wins; on a mandatory rule (s. 111.0035), the Code does.

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General information about Texas law, not legal advice, and not a substitute for the advice of an attorney. EstateDraft is software, not a law firm.

Frequently asked questions

What is a Texas trustee's core duty?: Administer the trust in good faith according to its terms and the Texas Trust Code (Prop. Code s. 113.051) — and in the absence of contrary terms, with the care and skill an ordinarily prudent person would exercise managing their own affairs. Loyalty, impartiality among beneficiaries, and accountability flow from that base and the fiduciary principles the Code layers on.
What is the prudent-investor rule?: Chapter 117 (Texas's Uniform Prudent Investor Act): invest and manage as a prudent investor would, judged at the PORTFOLIO level in light of the trust's purposes and risk/return objectives (s. 117.004), with a duty to diversify unless special circumstances say otherwise (s. 117.005) and to review assets promptly at inception (s. 117.006). Individual picks aren't judged in isolation — the strategy is.
What powers does a Texas trustee have?: Broad ones by default: the general powers of subchapter A (ss. 113.001-113.002) plus general authority to manage and invest trust property (s. 113.006) — all subject to the instrument, which can expand or LIMIT them (s. 113.001). Read the trust first; the Code fills gaps, the instrument controls.
How strict is trustee accountability?: Strict. The trustee is accountable to beneficiaries for the trust property AND for any profit made through the administration — even profit that involved no breach at all (s. 114.001(a)). Self-dealing rules and the duty of loyalty have teeth in Texas courts.
Can the trust instrument waive all of this?: Not all. Section 111.0035(b) lists what trust terms cannot override: the limits on exculpation clauses (s. 114.007 — bad-faith, intentional, or reckless-indifference breaches cannot be exculpated), the irrevocable-trust accounting-demand duty (s. 113.151) for current and presumptive-remainder beneficiaries, the duty to act in good faith per the trust's purposes, and the court's powers to modify, remove a trustee (s. 113.082), or adjust and disgorge compensation. Everything else is default rules the settlor may tune.

General information about Florida law, not legal advice.