The River Oaks Office of the Law Office of Bryan Fagan, PLLC, provides comprehensive guidance to trustees throughout River Oaks, Upper Kirby, West University, Montrose, Greenway Plaza, and the Central Houston area who are managing the complex fiduciary responsibilities associated with trust administration. Being appointed as a trustee is an honor—but it also carries significant legal obligations. Trustees must administer the trust faithfully, transparently, and in accordance with both the trust’s terms and the Texas Trust Code.

Many trustees are family members or close friends who accept the role without understanding the full extent of their duties. Mistakes such as failing to communicate, mismanaging assets, or ignoring legal requirements can lead to disputes, delays, or personal liability. Our River Oaks team ensures trustees understand their responsibilities and remain compliant at every step of the administration process.

Core Trustee Responsibilities Under Texas Law

Texas imposes several key fiduciary duties on trustees. These duties are designed to protect beneficiaries and preserve trust assets.

Duty to Follow the Trust Document

Trustees must:

• Adhere strictly to the instructions in the trust
• Recognize mandatory vs. discretionary provisions
• Avoid unauthorized actions
• Consult legal guidance when trust language is unclear

The trust document is legally binding and governs all trustee actions.

Duty of Loyalty to Beneficiaries

Trustees must act solely in the best interests of the beneficiaries, which includes:

• Avoiding conflicts of interest
• Treating all beneficiaries impartially
• Not benefiting personally from trust assets
• Maintaining full honesty and transparency

Self-dealing is strictly prohibited under Texas law.

Duty of Care (Texas Prudent Investor Rule)

Trustees must manage trust assets responsibly. This includes:

• Making informed, conservative investment decisions
• Avoiding speculative or high-risk investments
• Ensuring asset diversification
• Monitoring investments regularly
• Seeking advice from investment professionals when needed

Violating the Prudent Investor Rule may result in trustee liability.

Duty to Maintain Accurate Records

Trustees must maintain organized documentation for:

• All income and expenses
• Financial account statements
• Communication with beneficiaries
• Appraisals and property valuations
• Legal notices and filings
• Distribution documentation
• Periodic accountings

Texas beneficiaries have the right to request trust accountings at any time.

Duty to Inform & Communicate

Trustees must provide beneficiaries with:

• Notice of the trust’s existence
• A copy of the trust document (upon request)
• Updates on trust administration
• Reasonable responses to beneficiary questions
• Notice of major transactions or decisions

Strong communication prevents misunderstandings and fosters transparency.

Duty to Distribute Trust Assets Correctly

Trustees must:

• Follow distribution terms precisely
• Ensure accurate calculation of beneficiary shares
• Provide documentation for all transfers
• Distribute assets promptly
• Treat all beneficiaries fairly and consistently

Improper or delayed distributions frequently result in disputes.

Duty to Remain Legally Compliant

Trustees must ensure compliance with:

• Texas Trust Code
  
• IRS tax rules (including Form 1041 for trusts)
• Real property transfer laws
• Vehicle title requirements
• Notice and reporting obligations
• Fiduciary deadlines and legal expectations

Our River Oaks Office provides legal oversight to prevent missteps.

How Our River Oaks Office Supports Trustees

Our attorneys assist trustees by:

• Explaining trust terms in clear, simple language
• Guiding trustees through every step of administration
• Assisting with accounting, recordkeeping, and documentation
• Supporting communication with beneficiaries
• Managing tax filings and creditor issues
• Coordinating property appraisals, valuations, and transfers
• Meditating disputes or handling contested matters
• Protecting trustees against fiduciary liability

We ensure trustees can administer the trust confidently, lawfully, and efficiently.