A fiduciary, whether a trustee, executor, or guardian, is legally required to act in the interest of the beneficiaries. When this duty is breached, Texas law offers several options for legal recourse.
Filing a breach of fiduciary duty lawsuit
Beneficiaries harmed by a fiduciary’s actions can file a lawsuit for breach of fiduciary duty. Common breaches include misappropriation of assets, self-dealing, or failing to follow the terms of a trust or will. If proven, the court can order the fiduciary to pay damages or return mismanaged funds.
Removal of the fiduciary
Texas courts can also remove a fiduciary who has violated their duties. Beneficiaries can petition the court for removal if they believe the fiduciary is acting in bad faith, being negligent, or engaging in misconduct. Once removed, the court can appoint a new fiduciary to manage the estate or trust.
Seeking an accounting
Texas law allows beneficiaries to demand an accounting from the fiduciary. This legal tool requires the fiduciary to provide a detailed report of the estate or trust’s financial activities. If discrepancies or questionable transactions are found, beneficiaries can use the information to support their claims in a lawsuit.
Criminal penalties
In some cases, a fiduciary’s actions may result in criminal charges. Embezzlement, fraud, or other criminal behavior by a fiduciary can lead to prosecution. Criminal penalties can include fines and imprisonment, depending on the severity of the breach.
If a fiduciary breaches their duty, beneficiaries have several options under Texas law, including civil lawsuits, removal from position, and criminal charges. Texas courts prioritize protecting beneficiaries from fiduciary misconduct.