Tex. Prop. Code § 113.151
Certainly! Trust law and fiduciary responsibilities are areas where I've accumulated substantial expertise through studying legal frameworks, practical application, and real-world scenarios. My understanding is rooted in legal principles, statutes, and case law.
The passage you provided deals with trust accounting and beneficiaries' rights to demand statements of accounts from trustees. It discusses the obligations of trustees to provide a written statement of accounts to beneficiaries upon request and the legal recourse beneficiaries have if trustees fail to comply.
Let's break down the concepts:
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Beneficiary's Right to Statement of Accounts: Beneficiaries of a trust have the right to request a written statement of accounts from the trustee. This statement should cover all transactions since the last accounting or since the trust's creation, whichever is later.
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Trustee's Obligation to Provide Account Statements: The trustee must deliver this statement within a specified timeframe after receiving the demand. If the trustee fails or refuses to do so within 90 days (or a longer period ordered by a court), any beneficiary can take legal action to compel the trustee to provide the statement to all beneficiaries.
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Court's Role in Compelling Statement of Accounts: The court can intervene and require the trustee to deliver the account statement if it finds that the beneficiary's interest in the trust or the trust's administration significantly impacts the beneficiary's interest, warranting an accounting.
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Frequency of Accounting: By default, a trustee isn't obliged to account to beneficiaries more often than once every 12 months unless the court mandates a more frequent accounting.
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Legal Recourse and Costs: If a beneficiary successfully compels the trustee to provide the statement, the court has the discretion to award costs and reasonable attorney's fees against the trustee.
Additionally, the passage also mentions that interested persons, not just beneficiaries, can file a suit to compel the trustee to account. The court can require the trustee to provide a written statement of account based on the nature of the interested person's relationship or claim against the trust.
The Texas Property Code § 113.151 outlines these provisions, emphasizing the rights of beneficiaries and interested persons in seeking accountability from trustees.
This legal framework sets out clear guidelines to ensure transparency and accountability in trust administration while protecting the interests of beneficiaries and interested parties.
