Fiduciary Duty Claims in Texas Probate Litigation
Probate can be wildly stressful when the person administering an estate isn’t being fair. Beneficiaries might feel excluded or worry that the estate’s assets are being squandered. In Texas, an executor, administrator, or trustee can have fiduciary duties. This means they need to be careful when they are dealing with property that doesn’t belong to them. A Texas probate lawyer can help families decide if there are grounds to bring a claim for breach of fiduciary duty.
What is a fiduciary duty?
A fiduciary duty is a high duty imposed by law. It becomes relevant when one person controls property or decisions that affect another person. In probate cases, this is often the person who manages the estate after someone dies.
A fiduciary must usually protect estate property. They must avoid using the estate for personal gain. They must also be honest with the people who have rights in the estate. This does not mean every delay or mistake becomes a lawsuit. Probate can take time, and honest disagreements can happen. A claim of breach of fiduciary duty is usually based on conduct that causes injury to the estate or to its beneficiaries.
Who may owe fiduciary duties in probate?
The person named in a will as executor may owe fiduciary duties once appointed by the court. If there is no will, an administrator appointed by the court may have similar duties. If a trust is involved, a trustee may also owe duties.
These aren’t honorary titles. The person in charge may have to gather property, protect assets, pay legitimate debts, and distribute what’s left. They may also have to keep records and give information if the law requires it.
Issues may occur when the fiduciary uses estate property as if it were their own. They also occur where the fiduciary refuses to communicate or exhibits favouritism towards one beneficiary over another without justification.
What are common signs of a problem?
One warning sign is secrecy. Beneficiaries may ask basic questions and receive no answer. Another sign is missing funds, unexplained transfers, or property that disappears from the estate.
Concerns might also arise when the fiduciary sells property to themselves or someone close to them. Such a transaction could bring up issues of loyalty and fairness. Delays can matter if the fiduciary has no good reason to hold up the estate.
Not every concern proves wrongdoing. Sometimes the records explain what happened. Sometimes the fiduciary made a poor choice but did not cause legal harm. A Texas probate lawyer can help review the facts and separate a serious claim from ordinary frustration.
What can a fiduciary duty claim involve?
A fiduciary duty claim may require the court to examine the conduct of the fiduciary. The court may look into whether estate money was misused. It could look at whether the fiduciary failed to comply with court orders or failed to perform required duties.
In some cases, the goal is information. A beneficiary or interested person may need an accounting so they can understand the estate’s true condition. In other cases, the goal is to stop further harm. That may mean asking the court to remove the fiduciary.
A claim may also seek monetary relief. If the fiduciary caused a loss, the court may be asked to make them repay money or return property. The right remedy will depend on the facts and the type of probate case.
Can an executor be removed in Texas?
Yes, an executor or administrator can sometimes be removed. Texas law gives courts grounds to remove a personal representative in certain situations. Those grounds can include misusing estate property, failing to file a required account or failing to obey a proper court order. The law also addresses gross misconduct or mismanagement.
Removal is a serious request. Courts do not remove a fiduciary just because beneficiaries are unhappy. The person asking for removal usually needs facts that show the fiduciary is not properly doing the job.
This is why records are important. Bank records, court filings, emails and property documents can help tell the story. They also may indicate whether the fiduciary had a reasonable explanation.
What should beneficiaries do before filing a claim?
The first step for beneficiaries is to collect information. They should keep copies of all letters, emails, estate notices and any other records they receive. If they ask for information, they should do so in writing and keep a copy of the request.
It is also important not to assume the worst too quickly. Probate can be slow. Some assets take time to value or sell. Some debts must be handled before distributions can happen.
Still, beneficiaries should not ignore serious warning signs. If estate property is missing or money is being used in a suspicious way, waiting too long can make the problem harder to fix.
When should you speak with a lawyer?
You should speak with a lawyer if an executor, administrator or trustee refuses to provide basic information. You should also get help if estate money is missing, property has been transferred in a suspicious way, or the fiduciary appears to be acting for personal gain.
Fiduciary duty claims can affect family relationships and the future of the estate. They should be handled carefully. Coleman Jackson, P.C., helps clients understand probate disputes and fiduciary concerns in Texas.
If you are concerned about how an estate is being handled, contact Coleman Jackson, P.C. online or at (214) 599-0431 to speak with a Texas probate lawyer about your options.
This law blog is written by attorneys at Coleman Jackson, P.C., which is located at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206 for educational purposes; it does not create an attorney-client relationship between this law firm and its reader. You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.
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