CHAPTER 115. JURISDICTION, VENUE, AND PROCEEDINGS
PROPERTY CODE
TITLE 9. TRUSTS
SUBTITLE B. TEXAS TRUST CODE: CREATION, OPERATION, AND
TERMINATION OF TRUSTS
CHAPTER 115. JURISDICTION, VENUE, AND PROCEEDINGS
SUBCHAPTER A. JURISDICTION AND VENUE
Sec. 115.001. JURISDICTION. (a) Except as provided by
Subsection (d) of this section, a district court has original and
exclusive jurisdiction over all proceedings by or against a
trustee and all proceedings concerning trusts, including
proceedings to:
(1) construe a trust instrument;
(2) determine the law applicable to a trust instrument;
(3) appoint or remove a trustee;
(4) determine the powers, responsibilities, duties, and
liability of a trustee;
(5) ascertain beneficiaries;
(6) make determinations of fact affecting the administration,
distribution, or duration of a trust;
(7) determine a question arising in the administration or
distribution of a trust;
(8) relieve a trustee from any or all of the duties,
limitations, and restrictions otherwise existing under the terms
of the trust instrument or of this subtitle;
(9) require an accounting by a trustee, review trustee fees, and
settle interim or final accounts; and
(10) surcharge a trustee.
(a-1) The list of proceedings described by Subsection (a) over
which a district court has exclusive and original jurisdiction is
not exhaustive. A district court has exclusive and original
jurisdiction over a proceeding by or against a trustee or a
proceeding concerning a trust under Subsection (a) whether or not
the proceeding is listed in Subsection (a).
(b) The district court may exercise the powers of a court of
equity in matters pertaining to trusts.
(c) The court may intervene in the administration of a trust to
the extent that the court's jurisdiction is invoked by an
interested person or as otherwise provided by law. A trust is
not subject to continuing judicial supervision unless the court
orders continuing judicial supervision.
(d) The jurisdiction of the district court is exclusive except
for jurisdiction conferred by law on:
(1) a statutory probate court;
(2) a court that creates a trust under Section 867, Texas
Probate Code;
(3) a court that creates a trust under Section 142.005;
(4) a justice court under Chapter 27, Government Code; or
(5) a small claims court under Chapter 28, Government Code.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec.
2, eff. Jan. 1, 1984; Acts 1997, 75th Leg., ch. 1375, Sec. 5,
eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch.
148, Sec. 22, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch.
451, Sec. 11, eff. September 1, 2007.
Sec. 115.002. VENUE. (a) The venue of an action under Section
115.001 of this Act is determined according to this section.
(b) If there is a single, noncorporate trustee, an action shall
be brought in the county in which:
(1) the trustee resides or has resided at any time during the
four-year period preceding the date the action is filed; or
(2) the situs of administration of the trust is maintained or
has been maintained at any time during the four-year period
preceding the date the action is filed.
(c) If there are multiple trustees or a corporate trustee, an
action shall be brought in the county in which the situs of
administration of the trust is maintained or has been maintained
at any time during the four-year period preceding the date the
action is filed, provided that an action against a corporate
trustee as defendant may be brought in the county in which the
corporate trustee maintains its principal office in this state.
(d) For just and reasonable cause, including the location of the
records and the convenience of the parties and witnesses, the
court may transfer an action from a county of proper venue under
this section to another county of proper venue:
(1) on motion of a defendant or joined party, filed concurrently
with or before the filing of the answer or other initial
responsive pleading, and served in accordance with law; or
(2) on motion of an intervening party, filed not later than the
20th day after the court signs the order allowing the
intervention, and served in accordance with law.
(e) Notwithstanding any other provision of this section, on
agreement by all parties the court may transfer an action from a
county of proper venue under this section to any other county.
(f) For the purposes of this section:
(1) "Corporate trustee" means an entity organized as a financial
institution or a corporation with the authority to act in a
fiduciary capacity.
(2) "Principal office" means an office of a corporate trustee in
this state where the decision makers for the corporate trustee
within this state conduct the daily affairs of the corporate
trustee. The mere presence of an agent or representative of the
corporate trustee does not establish a principal office. The
principal office of the corporate trustee may also be but is not
necessarily the same as the situs of administration of the trust.
(3) "Situs of administration" means the location in this state
where the trustee maintains the office that is primarily
responsible for dealing with the settlor and beneficiaries of the
trust. The situs of administration may also be but is not
necessarily the same as the principal office of a corporate
trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec.
2, eff. Jan. 1, 1984; Acts 1999, 76th Leg., ch. 344, Sec. 4.026,
eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 933, Sec. 1, eff.
Sept. 1, 1999.
SUBCHAPTER B. PARTIES, PROCEDURE, AND JUDGMENTS
Sec. 115.011. PARTIES. (a) Any interested person may bring an
action under Section 115.001 of this Act.
(b) Contingent beneficiaries designated as a class are not
necessary parties to an action under Section 115.001. The only
necessary parties to such an action are:
(1) a beneficiary on whose act or obligation the action is
predicated;
(2) a beneficiary designated by name in the instrument creating
the trust;
(3) a person who is actually receiving distributions from the
trust estate at the time the action is filed; and
(4) the trustee, if a trustee is serving at the time the action
is filed.
(c) The attorney general shall be given notice of any proceeding
involving a charitable trust as provided by Chapter 123 of this
code.
(d) A beneficiary of a trust may intervene and contest the right
of the plaintiff to recover in an action against the trustee as
representative of the trust for a tort committed in the course of
the trustee's administration or on a contract executed by the
trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec.
2, eff. Jan. 1, 1984; Acts 1995, 74th Leg., ch. 172, Sec. 1, eff.
Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
148, Sec. 23, eff. January 1, 2006.
Sec. 115.012. RULES OF PROCEDURE. Except as otherwise provided,
all actions instituted under this subtitle are governed by the
Texas Rules of Civil Procedure and the other statutes and rules
that are applicable to civil actions generally.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec.
2, eff. Jan. 1, 1984.
Sec. 115.013. PLEADINGS AND JUDGMENTS. (a) Actions and
proceedings involving trusts are governed by this section.
(b) An affected interest shall be described in pleadings that
give reasonable information to an owner by name or class, by
reference to the instrument creating the interest, or in other
appropriate manner.
(c) A person is bound by an order binding another in the
following cases:
(1) an order binding the sole holder or all coholders of a power
of revocation or a presently exercisable general power of
appointment, including one in the form of a power of amendment,
binds other persons to the extent their interests, as objects,
takers in default, or otherwise are subject to the power;
(2) to the extent there is no conflict of interest between them
or among persons represented:
(A) an order binding a guardian of the estate or a guardian ad
litem binds the ward; and
(B) an order binding a trustee binds beneficiaries of the trust
in proceedings to review the acts or accounts of a prior
fiduciary and in proceedings involving creditors or other third
parties;
(3) if there is no conflict of interest and no guardian of the
estate or guardian ad litem has been appointed, a parent may
represent his minor child as guardian ad litem or as next friend;
and
(4) an unborn or unascertained person who is not otherwise
represented is bound by an order to the extent his interest is
adequately represented by another party having a substantially
identical interest in the proceeding.
(d) Notice under Section 115.015 shall be given either to a
person who will be bound by the judgment or to one who can bind
that person under this section, and notice may be given to both.
Notice may be given to unborn or unascertained persons who are
not represented under Subdivision (1) or (2) of Subsection (c) by
giving notice to all known persons whose interests in the
proceedings are substantially identical to those of the unborn or
unascertained persons.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec.
2, eff. Jan. 1, 1984.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
672, Sec. 4, eff. September 1, 2009.
Sec. 115.014. GUARDIAN OR ATTORNEY AD LITEM. (a) At any point
in a proceeding a court may appoint a guardian ad litem to
represent the interest of a minor, an incapacitated, unborn, or
unascertained person, or person whose identity or address is
unknown, if the court determines that representation of the
interest otherwise would be inadequate. If there is not a
conflict of interests, a guardian ad litem may be appointed to
represent several persons or interests.
(b) At any point in a proceeding a court may appoint an attorney
ad litem to represent any interest that the court considers
necessary, including an attorney ad litem to defend an action
under Section 114.083 for a beneficiary of the trust who is a
minor or who has been adjudged incompetent.
(c) A guardian ad litem may consider general benefit accruing to
the living members of a person's family.
(d) A guardian ad litem is entitled to reasonable compensation
for services in the amount set by the court to be taxed as costs
in the proceeding.
(e) An attorney ad litem is entitled to reasonable compensation
for services in the amount set by the court in the manner
provided by Section 114.064.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec.
2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch.
148, Sec. 24, eff. January 1, 2006.
Acts 2009, 81st Leg., R.S., Ch.
672, Sec. 5, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
672, Sec. 6, eff. September 1, 2009.
Sec. 115.015. NOTICE TO BENEFICIARIES OF TORT OR CONTRACT
PROCEEDING. (a) A court may not render judgment in favor of a
plaintiff in an action on a contract executed by the trustee or
in an action against the trustee as representative of the trust
for a tort committed in the course of the trustee's
administration unless the plaintiff proves that before the 31st
day after the date the action began or within any other period
fixed by the court that is more than 30 days before the date of
the judgment, the plaintiff gave notice of the existence and
nature of the action to:
(1) each beneficiary known to the trustee who then had a present
or contingent interest; or
(2) in an action on a contract involving a charitable trust, the
attorney general and any corporation that is a beneficiary or
agency in the performance of the trust.
(b) The plaintiff shall give the notice required by Subsection
(a) of this section by registered mail or by certified mail,
return receipt requested, addressed to the party to be notified
at the party's last known address. The trustee shall give the
plaintiff a list of the beneficiaries or persons having an
interest in the trust estate and their addresses, if known to the
trustee, before the 11th day after the date the plaintiff makes a
written request for the information.
(c) The plaintiff satisfies the notice requirements of this
section by notifying the persons on the list provided by the
trustee.
Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec.
2, eff. Jan. 1, 1984.
Sec. 115.016. NOTICE. (a) If notice of hearing on a motion or
other proceeding is required, the notice may be given in the
manner prescribed by law or the Texas Rules of Civil Procedure,
or, alternatively, notice may be given to any party or to his
attorney if the party has appeared by attorney or requested that
notice be sent to his attorney.
(b) If the address or identity of a party is not known and
cannot be ascertained with reasonable diligence, on order of the
court notice may be given by publishing a copy of the notice at
least three times in a newspaper having general circulation in
the county where the hearing is to be held. The first publication
of the notice must be at least 10 days before the time set for
the hearing. If there is no newspaper of general circulation in
the county where the hearing is to be held, the publication shall
be made in a newspaper of general circulation in an adjoining
county.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2,
eff. Jan. 1, 1984.
Sec. 115.017. WAIVER OF NOTICE. A person, including a guardian
of the estate, a guardian ad litem, or other fiduciary, may waive
notice by a writing signed by the person or his attorney and
filed in the proceedings.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2,
eff. Jan. 1, 1984.